In Oregon, many schools and school districts are turning to private funding to help sustain and enrich the quality of education in their districts. Their vehicle of choice: the local education foundation (LEF). This report describes the nature of private fund raising for public schools and examines its uses as a partial remedy for budget shortfalls. At least 25 new LEFs have been organized throughout Oregon since 1990. Many LEF spokespersons identify the property-tax cap as a major reason for appealing to private sources for help. The report describes how school foundations are started, fund-raising methods, fund-raising targets, target-giving options, relationships of LEFs to school boards, and the issue of equity. However, the practice may send the message that state support is no longer necessary and should not be relied upon as a long-term or stable source of revenue. LEFs can, however, alleviate some financial needs, unite the school district, and provide opportunities to students and personnel. Interviews were conducted with 21 educators, foundation directors, and foundation personnel. Privately raised funds account for less than 1 percent of all dollars spent on public education. (Contains 19 references.) (LMI)