A guide to writing effective proposals that are designed to funding for specific projects is presented. The need to clearly identify the nature of project--its design, its anticipated outcomes, and the needs which the project is addressing--is described as the crucial first step in the grantswriting process. Next, the importance of the prospectus (a capsule version of the proposal) is examined--what it is and its components. The proposal structure and content is then discussed within the following areas: (1) the need/problem being addressed; (2) the objectives to be achieved; (3) the methodology that is planned for achieving the objectives; and (4) how much the project is anticipated to cost. The budgetary process is examined in a separate chapter with discussions on anticipating project costs, the standard costs to be considered, and indirect costs. Some thoughts concerning matching funds are also included. Finally, the handbook presents information on the variety of support services that the Oklahoma State University's Office of Education Research provides to assist researchers in their search for external funding for research, instructional, or service activities. (GLR)