National Fund for Literacy Development Act

National Fund for Literacy Development Act - Establishes the National Fund for Literacy Development as a charitable, nonprofit, and nonpartisan corporation.

Directs the Fund to raise money by encouraging private gifts of real and personal property to assist the Secretary of Education in carrying out literacy education programs under this Act.

Establishes a National Board for Literacy Development to: (1) determine the overall activities, priorities, policies, and goals of the Fund; and (2) advise the Secretary concerning the priorities, policies, goals, selection of projects and implementation of programs under this Act. Requires the Board to report annually to the Secretary and the Congress on the amount of private moneys raised through the Fund, the disposition of such amounts, and the long-term priorities and goals for the Fund.

Directs the Secretary, with sums appropriated under this Act and with amounts contributed by the Fund, through the Office of Adult Education, to carry out a program of grants to expand the ability of existing literacy programs and agencies to offer improved services. Sets forth allowable uses of grant funds. Requires the use of a peer review procedure for final determination of grant awards. Authorizes the Secretary to make multiple year grants. Directs the Secretary to report annually to the Congress on such grants program.

Authorizes appropriations for FY 1987 through 1991.