Guidelines for state colleges and universities who wish to use a foundation as an umbrella organization for receiving all private gifts, restricted and unrestricted, are presented. In examining the need for a foundation, attention should be directed to: establishing credibility, marshalling volunteers, providing for a mechanism for accepting life income agreements, increasing investment potential, and diminishing political influence. Guidelines for policy implementation should include the following points: coordinating appeals for funds and approaches to donors; accepting, recording, reporting, and acknowledging gifts; establishing minimum funding requirements; formulating budgets for fund raising programs; preparing fund raising literature; maintaining prospect files; recognizing donors; and involving and using volunteers. Sample fund-raising policy and guidelines and a sample case statement that describes the institution's need for private support are included. Steps in the process of incorporating the foundation are outlined, and a sample articles of incorporation and a sample set of bylaws are presented. The sample articles are for a closed foundation and the sample bylaws are for an open foundation. A provision for unlimited membership is the only major difference between the two. Information is also presented on choosing directors, finding start-up money, establishing accounts, and disbursing funds. Sample guidelines for establishing foundation funds and sample disbursement guidelines are included. The following types of accounts are described: general accounts, term accounts, endowment funds, and trust funds. (SW)