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Abstract: The paper introduces the algorithm for choosing the subjects of students’ creative projects and the rationale behind their content; the focus is on supplementary education establishments specializing in children’s and youth arts. It is shown that both the subject and the rationale behind the content of creative projects are a multifactorial optimization problem. In the course of project implementation students are supposed to achieve social, didactic, cognitive and psychological motivational goals, meeting the deadlines and complying with required informational, methodological and technical support standards. To evaluate students’ creative activity the following criteria are used: practical acquisition of students’ creative skills, novelty of the project submitted, practical and social value of the project, student’s motivation for specific professional activity, the competence to prove their points of view and to present the results of their work in public. When choosing the subject and substantiating the content of the creative project it is important to analyze resources and restrictions with regard to the deadline imposed, as well as informational, methodological and technical support available. A lack or a shortage of resources carry the risk of disrupting normal project activity and may cause some psychological stress. Implementation of the creative project requires close cooperation between teachers and students. This cooperation should be based on equal terms and be mutually supportive at every stage of project implementation. It should be noted that preference should be given to students – they are to be free in choosing the subject matter, the deadline, the methods and techniques applied. In other words, supervising students’ creative activity teachers should take a descriptive rather than a prescriptive approach. The authors introduce the procedures of peer review concerning the subject matter of the creative project.