The Foster Grandparent Program (FGP) is a 15-year old Federal program that provides a stipend to low-income Americans who are age 60 and over for serving children with special needs. More than 17,000 foster grandparents across the country serve 20 hours per week. In 1978, the FGP awarded demonstration grants to 13 projects to explore the placement of foster grandparent volunteers in the three specified areas of need. In 1980, a study was conducted by ACTION to assess the degree to which these demonstration efforts were achieving their stated goals. Based upon study findings, the evaluation division suggests that project directors continue to place volunteers in the areas of child abuse, juvenile offenders, and deinstitutionalization. A relatively low proportion of male volunteers in the FGP continues to be a major concern. A higher percentage of men were found to be serving in the demonstration components, particularly in the juvenile offender components, than in the FGP at large. Almost 50 percent of the 109 volunteers in the demonstration components were recruited from existing FGP projects. The most unique placements in the demonstration components were in the homes of abused or neglected children. Here, foster grandparents spent much time providing role models and parenting skills to the mothers. Such family placements often involved conflict. Another problem identified through the study was the difficulty of establishing one-to-one lasting relationships with youth in the juvenile offender component, primarily due to the short stays of youths in detention centers. Training and supervision provided for demonstration volunteers were similar to that provided for FGP generally. Despite the lack of criteria for measuring the success of demonstration efforts, there is little doubt that the children served benefited from FGP involvement. One table, one figure, and footnote are included. The project volunteer satisfaction questionnaire and other forms are appended. (Author abstract modified)