An Undergraduate Research Fund (URF) at Indiana University South Bend that has supported over 100 projects and distributed over $25,000 to students since 1989 has yielded several lessons regarding the program's success. URF not only funded student projects but provided small grants to faculty mentors who encouraged and worked with students. Three data sources provided information on the program: a program database; a 1993 student survey sent to 60 students and returned by 16, and a faculty survey mailed to 218 and returned by 68. Based on analysis, several conclusions were drawn: (1) the URF was effective in stimulating undergraduate research and fostering faculty mentorship; (2) the faculty role was critical to the success of undergraduate research programs; (3) funding should remain flexible; and (4) the program's benefits went far beyond the funds expended as both students and faculty mentors strongly agreed that a URF award helped a student's graduate school or job application. Contains several tables and figures displaying data on the program. (JB)