If community colleges expect to effectively serve their diverse constituency, they must develop and refine effective fund-raising capabilities. Institutional development, which encompasses fund raising and other activities, often begins with the Development Office, which is considered in the document in terms of its purpose and functions in Chapter II. Since institutional development must become "institutionalized" before a fund-raising program can attain success, all segments of the college--the faculty, the students, the staff--must become involved with and participate in the goal and objectives of institutional development. Grantsmanship (Chapter III) must be practiced within and outside of the Development Office. Alumni activities (Chapter IV), e.g., involving alumni in publications and programs, although not primarily a source of revenue, are an important part of institutional development. A successful annual fund campaign (Chapter V), college foundations (Chapter VI), and planned or deferred giving (Chapter VII) are considered in terms of planning, institutional commitment and involvement, and organizational requirements. A bibliography is included, and appendices contain a sample proposal letter, a case statement outline, a list of resource guides, a grant processing flow chart, a list of companies with grant programs, and sample bylaws and articles of incorporation. (MB)