In 1977, over half a million children were in out-of-home placement nationwide. This trend continued and, as of mid-1991, an estimated 600,000 children were living apart from their families in foster homes, juvenile detention centers, or State mental institutions. In 1991, taxpayers spent $9.1 billion on out-of-home care for children. Although children are removed from their families for what the system calls abuse and neglect, foster care advocates agree that too many children are removed from their homes and that not enough attention is being paid to alternative responses. Family preservation is not meant to be a substitute for all foster care or placement outside the home, but only for unnecessary placement. At the heart of the family preservation movement are seven principles: children need families; safety is the first concern; a crisis is an opportunity for change; not all problems need to be addressed; most family members really care about each other; everyone is doing the best they can at the time; and power for change resides within the family. Characteristics of family preservation programs are examined, along with program evaluation, child welfare legislative efforts, and funding for child welfare services. Consideration is also given to substance abuse problems and to the juvenile justice and mental health systems. References, illustrations, and photographs