Concurrent with the problem of declining resources from traditional sources, the results of the rapid expansion and construction of community colleges during the 1960's and 1970's encouraged the development of alternatives in funding. By 1978, 52% of the community colleges in the United States had established the foundation as a vehicle for encouraging and receiving public funds and for improving public relations. In establishing a college foundation, the college board of trustees must authorize the use of the institution's name. The foundation itself begins with a president, vice-president, secretary, treasurer, and executive committee. Its development and organization period usually takes at least nine to twelve months and can be divided into four phases: (1) the organizational and administrative period which consists of developing the Articles of Incorporation and By-laws, filing for Internal Revenue Service tax exemption status, securing approval by the state government, selecting the core group of the board of directors, and developing a brochure for public distribution; (2) the educational awareness period during which members of the board of directors are introduced to various aspects of the institution and other members of the board are recommended; (3) the community relations period; and (4) the planning and implementation period. (The report concludes with a list of operational "do's" and "don'ts" based upon the experience of successful foundations.) (AYC)