Recommendations are developed in this 1976 annual report of the Advisory Council on Developing Institutions to enhance the effectiveness of the current Title III program, and to enable the affected schools to enter the mainstream of American higher education. This report covers: the functions and activities of the council; the continuing need for assistance; provisions of Title II; developments during 1976; and a report on Title III benefits to minorities. Appended are data on awards by institution, funding by state, maps of grantee and participating institutions, maps of students at those institutions, the authorizing legislation, and regulations. (LBH)