This paper argues that, as institutional revenues continue to decline, community college administrators must not only work at developing a robust foundation with an identifiable process similar to that of a private nonprofit foundation, but also provide professional stewardship in its operation. The author used a qualitative, evaluative approach that combined institutional reports with a survey, with the aim of gaining an understanding of the public-private relationship between the state institution and its associated private foundation. The premise of the study is that the foundations may not have moved fully into the realm of effective resource management, and if they have, their performance is not consistent enough to be reliable. The study examined three demographically similar community colleges in the Virginia Community College System, all with established foundations, and explored what each has done in response to state policy changes regarding funding. The questionnaire covered five categories ranging from administrative leadership to institutional planning, and included an optional section for further comment. Responses revealed that, though presidents see fund raising as a primary role, they do not invest a great deal of time in the activity. Additionally, the way those who are in foundation management see their roles varies from institution to institution. Research instrument appended. (Contains 11 figures, 16 tables, and 131 references.) (NB)