This North Carolina handbook brings together the information needed by local school systems to plan, develop, and implement effective programs to keep students in school. These topics are included: (1) legislation and policy for the implementation of the State Dropout Prevention Fund; (2) program standards and performance indicators; (3) program options; (4) dropout prevention data; (5) funding sources; (6) principles for dropout prevention; (7) a form for plannning programs; (8) a list and discussion of 26 elements of a successful dropout prevention program; (9) the State Dropout Prevention Funds Annual Report Summary 1985-86 and Synopsis of the Statewide Study of the Class of 1981; (10) a list of school, personal, and family characteristics of students who are at risk of dropping out; (11) samples of schools' identification forms and other sample diagnostic instruments for high-risk students; (12) a discussion of major program types for dropouts and potential dropouts (job placement centers, extended school day programs, in-school suspension, transition programs, and counseling the high-risk student); and (13) descriptions, program goals, and key elements of three dropout prevention programs. (ABL)