This handbook offers guidance to library personnel in planning and evaluating Library Services and Construction Act (LSCA) grant programs. It was developed for use in the intermediate stages of identifying uses for real or potential funds, rather than as a tool for preliminary needs assessment or for preparing an LSCA grant application. The steps of the stakeholder-centered evaluation approach include: (1) develop a preliminary project plan; (2) identify the project stakeholders; (3) hold a meeting of those stakeholders, discussing and completing a project evaluation worksheet; (4) redefine the project proposal; (5) collect and analyze evaluation data; (6) summarize evaluation data for stakeholders; and (7) prepare a final report. Appendices contain a sample meeting agenda and project evaluation worksheet, suggested data collection methods, 10 references, an outline of stakeholder titles, and a glossary. (BEW)