Educational foundations for raising and allocating private funds have a legitimate place in the community college. They allow a college to chart its growth, anticipate emergencies, and meet the needs of all sectors of the institution. Foundations must utilize an active development program for planning and executing a conscious, continuous effort to increase financial resources. Such a development program would depend on students, alumni, foundation board members, college trustees, parents, and college staff to reach donors, through such means as personal solicitations, telethons, and mail appeals. Fund-raising should also include appeals to corporations, philanthropic foundations, local businessess, and should solicit gifts through bequests, trusts, and annuities. The foundation could be a shared venture of several colleges; its programs could include the leasing of its buildings to the colleges, endowment of teaching chairs, provision of student financial assistance, financing of equipment and facilities, and underwriting educational and community service programs. Organizational structure should include a Director of Development and a board of trustees or directors. (RT)