This handbook seeks to provide project managers and policy analysts with the tools needed for evaluating project impact. It is aimed at readers with a general knowledge of statistics. For some of the more in-depth statistical methods discussed, the reader is referred to the technical literature on the topic. Chapter 1 presents an overview of concepts and methods, Chapter 2 discusses key steps and related issues to consider in implementation, Chapter 3 illustrates various analytical techniques through a case study, and Chapter 4 includes a discussion of lessons learned from a rich set of “good practice" evaluations of poverty projects that have been reviewed for this handbook. The case studies, included in Annex I, were selected from a range of evaluations carried out by the World Bank, other donor agencies, research institutions, and private consulting firms. They were chosen for their methodological rigor, in an attempt to cover a broad mix of country settings, types of projects, and evaluation methodologies. Also included in the Annexes are samples of the main components that would be necessary in planning any impact evaluation–sample terms of reference, a budget, impact indicators, a log frame, and a matrix of analysis.