This 1977 annual report of the Advisory Council on Developing Institutions summarizes the council's functions and activities, states the continuing need for assistance, defines the provisions of Title III of the Higher Education Act of 1965, and presents developments during 1977. The advisory council has assisted the U.S. Congress and the Administration in carrying out the legislative intent of Title III: to strengthen developing colleges and universities. Title III provides for a basic institutional development program and advanced institutional development program. The basic program emphasizes five principal categories of support: administrative improvement, faculty development, curriculum development, student services programs, and development programs. Grants under the advanced program are directed toward total institutional development. The following four ongoing projects under the basic program are described: freshmen studies program, Mexican American program, competency-based curriculum, and Native American program. Advanced development programs at a public community college, four-year community college, four-year private colleges, and four-year state university are also described. Findings and recommendations of the council are presented. Appendices include information on funding, the text of the authorizing legislation, and pertinent federal regulations. (SW)