This handbook was developed for the purpose of providing drug and alcohol prevention program managers with a comprehensive yet easy-to-use tool to help their evaluation efforts. The handbook emphasizes program staff members working together as a team. It provides instruments and activities for determining program effectiveness, as well as documenting and monitoring the provision of services. These topics are discussed: (1) the rationale for program evaluation; (2) the question of whether experts are needed to conduct the evaluation; (3) the beginning steps in evaluation; (4) evaluation design; (5) outcome measurement; (6) measurement of level of effort, participation, and quality of program delivery; (7) organizing and collecting data; (8) data analysis; and (9) reporting and using results of the evaluation. References, reference tables, an annotated bibliography, an evaluation think sheet, a survey instrument used yearly by the National Institute on Drug Abuse to collect information from a nationwide sample of high school seniors, and 13 figures are included. (ABL)