Projects supported by the Fund for the Improvement of Postsecondary Education (FIPSE) have a very high survival ratio after the grant has ended. The reason for this success seems to lie in the structure and principles of FIPSE. These principles (which can be adopted as guidelines in the creation of other innovation funds) include allowing maximum local freedom to frame a problem and design a solution, and maintaining high standards for assessing the significance and feasibility of proposals. This creates a rigorous competition in which only the very best of the many proposals received are funded. Most ideas and action plans are not very good, but a few are very good indeed. A competitive, open review process such as this is ideal for spotting the good ones. Several states have created their own improvement funds. For those wanting to obtain FIPSE guidelines, the address is provided. (DC)