A Local Education Fund (LEF) is a third-party, nonprofit entity whose agenda, at least in part, consists of developing supportive community and private sector relationships with a public school system. It provides limited private sector support to launch initiatives and broker relationships leading toward school improvement. LEFs are funded and assisted by the Public Education Fund. This handbook is intended to help communities of diverse size and population to develop LEFs that meet local needs. It explores the following areas basic to the creation, understanding, and support of this new type of community organization: (1) the nature of an LEF; (2) determining need, assessing potential, and convening leadership in the local community; (3) organizing a LEF, its mission, structure, board of directors, bylaws, committees, meetings, staff, and office; (4) the business of an LEF, including brokering, convening, program implementation, small grants, and public information; and (5) funding an LEF. Thirteen steps to organize an LEF are suggested. Black and white photographs illustrate the text. (BJV)