The National Coalition for Literacy's (NCL's) stated goal is to serve as the national leadership organization of the adult literacy field. However, NCL's organizational structure severely limits its ability to muster the personnel resources or raise the money required to fully perform the leadership functions required of a national coalition. The following options for NCL's future were therefore reviewed: (1) disband NCL; (2) maintain the status quo; (3) make modest improvements to improve NCL's effectiveness; and (4) incorporate NCL as a tax-exempt organization with a professional staff and an adequate budget. The review process included the following activities: (1) interviews with 20 individuals, including 19 of NCL's 34 listed voting members; (2) interviews with individuals representing NCL's nonvoting members and others who could provide technical advice or external perspectives on NCL; and (3) a review of various documents related to NCL's charter, bylaws, financial situation, and public policy work. It was recommended that NCL become an incorporated, tax-exempt organization with a small professional staff provided NCL's leadership is willing to make the short-term commitment of time and resources required to complete the incorporation process. (The following items are appended: a list of evaluation study interviewees; a memorandum on incorporation and tax exemption; general information on lobbying; and a description of the law practice counseling the NCL.) (MN)