A discussion of family literacy projects focuses on alternatives to traditional methods of program evaluation. In the first chapter, the distinction between standardized and alternative assessments is clarified and the special evaluation needs of family literacy projects are highlighted. The remainder of the handbook is intended to help program staff members design and implement appropriate alternative approaches to assessment. Each chapter addresses a different aspect of assessment and evaluation. Chapter 2 contains a model for integrating program planning, implementation, and evaluation activities. Chapter 3 addresses initial assessment, including needs assessment, intake, and placement, suggesting strategies for using these to yield accurate baseline information. The fourth chapter describes how alternative approaches can be used to document learners' progress toward instructional objectives, and the fifth chapter suggests uses for surveys, performance samples, focus groups, and observation techniques to measure and demonstrate progress toward program goals. The final chapter describes the process used in designing and field testing this handbook, using the planning model presented earlier and offering methods for refining the project in question. A glossary is included. (MSE) (Adjunct ERIC Clearinghouse on Literacy Education)