The purpose of this handbook is to help communities initiate small grant programs for teachers using the one currently operating in Pittsburgh (Pennsylvania) as a model. Small grant programs, in which teachers compete for community-sponsored grants to carry out innovative projects with their students, are described as meeting two needs: new resources are brought to the classroom, and education's isolation from business and the community is broken down. Six key considerations in planning a program are discussed: (1) obtaining school district commitment; (2) forming a grant review committee; (3) raising funds; (4) coordinating the program; (5) publicizing the program; and (6) awarding grants. Review committee guidelines for awarding grants are offered as well as a checklist for program planning and implementation. Once the program is operating successfully, it is recommended that greater community-school cooperation be sought through additional avenues. An address and telephone number are provided for further information. (DC)