The United Negro College Fund (UNCF) was organized primarily to help provide approximately 10% of the operating budgets of its members, the private Negro colleges. Today, despite the growing income of the UNCF, many of its member colleges are seriously in need of capital funds. In an evaluation of higher education for Negroes that was sponsored by the Carnegie Foundation and published in 1965, Earl McGrath points out that although the majority of Negro institutions are academically weak, they have counterparts in the all-white colleges. This led him to the conclusion that the quality of education in the Negro Colleges is not a matter of race but of resources. Accepting McGrath's challenge to multiply the financial resources that were available to Negro colleges, the Phelps-Stokes Fund obtained a grant from the Alfred P. Sloan Foundation and undertook a three-year project in an aspect of fund raising not yet covered by the UNCF: raising capital funds to meet endowment, building, and special project needs. Development offices were established on the campuses of 23 selected public and private Negro colleges. The program's success justified its expansion to additional institutions and a second grant. With federal support, a consortia of development programs for 40 colleges was subsequently formed. Recognition of the development function by Negro colleges is growing, but there is a need for more effective trustee involvement, better use of presidents' time, and more support of development offices by administrative teams. (WM)