This booklet is a step-by-step guide to developing a grant application for educational project funding. Following a brief review of grant terminology, the booklet discusses sources of funding and the development of federal legislation. A discussion of the actual grant proposal includes such topics as writing the abstract and objectives, the time frame to consider, evaluation, budget, and letters of endorsement. Also examined are the proposal review process, contacts with the funding agency, and getting organizational approval. (Author/LD)