Noting that information is needed about libraries' roles in literacy activities in terms of the outcomes, the Library Programs Office of the U.S. Department of Education awarded the Division of Library Development a grant to develop a model that would evaluate literacy activities in such a fashion. A result of this effort, this library literacy evaluation manual is partially based on the results of a survey of selected New York libraries and a sample of U.S. public libraries. The survey instrument asked library and literacy staff about their current and desired literacy evaluation approaches. Presented in the first of seven chapters in this manual, the key results of the survey include information on the libraries' literacy collections, literacy support services, and literacy instruction. The second chapter describes the value of an evaluation model and the four steps of the evaluation model profiled in this manual. The remaining chapters provide further principles based on this evaluation model and explain both core and optional evaluation measures to be used for library-based literacy programs in New York State. These chapters describe some of the issues in evaluation, outline basic questions to be addressed when developing an evaluation plan, and describe how to measure and apply performance levels in terms of inputs, outputs, and outcomes. Specific suggestions for use of evaluation data are given in the concluding chapter. Three appendices contain a copy of the survey questionnaire, a summary report form, and a 16-item bibliography. (MAB)