Public school foundations are privately operated, nonprofit organizations established for the specific purpose of raising money for use by individual public school districts. This monograph examines the advantages and disadvantages of public school foundations, and describes the conditions necessary for such foundations to succeed. Chapter 1 defines public school foundations, traces their history, and discusses the relationship between foundations and the wealth of a school district. It also summarizes the pros and cons of foundations and discusses the basic requirements. Chapter 2 examines in detail the procedures for establishing a foundation, while chapter 3 covers legal requirements and tax regulations to which public school foundations must adhere. In chapter 4, interviews with officials of successful foundations are reported, and in chapter 5, types of fundraising are reviewed. The discussion is summarized in chapter 6. Two appendixes provide (1) examples of public school foundation documents, and (2) a timeline for establishing a foundation. The monograph is based primarily on California law, but most of the information is applicable to other states as well. (TE)