This monograph describes Save The Children's Non-Formal Education (NFE) Program implemented in rural Nepal. Since the formal education of females is not a cultural priority, NFE targets women and girls. Currently, 90-95 percent of participants are female, including adult women and out-of-school girls. Enhancing and increasing literacy is the primary goal of NFE, a community-based program that couples literacy with community development. Program features include materials that are relevant to women's daily lives, and the organization of women's groups for collective action. Such groups have undertaken economic development activities; devised a system of home-based rotating child care; empowered local women economically, socially, and politically; and begun activities focused on the needs of children. Program implementation has demonstrated several principles of nonformal education intervention: (1) literacy curriculum relevant to learners' lives energizes the process of learning to read; (2) program sustainability is directly connected to community initiative and program ownership; (3) effectively reaching isolated rural areas depends on local program management, training, and monitoring; (4) an integrated approach addresses community needs more effectively and holistically; (5) raising awareness and meeting raised demands should be organizational responsibilities; and (6) child care issues must be addressed. Contains 15 references. (MNL)