Specific actions that schools, districts, and business groups can take to create effective cooperative programs are outlined and discussed in this manual. The booklet first cites national trends toward increased private sector involvement in education, then describes four activities mandated by South Carolina's Education Improvement Act of 1984 to increase cooperative efforts. The guide next presents a list of 29 ways in which community groups can assist local schools, including through donations, grants, sponsorship of activities, and offering training programs for students. Four ways of assisting entire districts are also listed. The guide next establishes six principles on which to base effective partnerships and examines the advantages that cooperative programs can provide to businesses and to students. The following sections of the guide present nine steps that businesses should take and 16 steps that schools should take when developing cooperative programs. Fifteen examples of successful programs operating in districts around South Carolina conclude the text. The guide also provides checklists to determine priorities of school needs and the nature of a business group's support, a model school board policy on partnerships, and samples of partnership contract and quarterly report forms. (PGD)