Iola Scrafford, 63, the founding director of the Crossroads Drug Abuse Program in Fairfax County, died of cancer Dec. 25 at Fairfax Hospital.

Mrs. Scrafford, who lived in McLean, was born in St. Louis and grew up in Memphis. She attended Memphis State University and earned a degree as a registered nurse at Methodist Hospital in Memphis.

She was a nurse in Arizona and Ohio and then in Mercer County, W.Va., where she started a maternal and child facility for the county public health department. She later moved to Roanoke County, Va., where she began a drug treatment program.

She moved to the Washington area in 1969 and in the same year founded the Crossroads Drug Abuse Program for Fairfax County. It is now run by the Fairfax County/Falls Church Services Board and operates clinics in Fairfax City and the Fairfax section of Alexandria and the Crossroads Residential Facility which also is located in the Fairfax section of Alexandria.

Mrs. Scrafford, who headed the Crossroads program until her death, served on numerous accrediting committees for drug treatment programs around the country.

In 1971, she received the Health Ontahnak Award, an honor for Fairfax County employees. In 1980, she was named a ''women of the year'' among county employes. In November 1984, she received a special award from the Fairfax/Falls Chuch Sericess Board for the service in the drug abuse field.

Survirors include her husband, Dr. E. Joseph Scrafford of McLean; three children, Julie Simmons of Fort Mill, S.C., Amy Pelleg of Havertown, Pa., and Daniel H. Scrafford of Burke; her mother, Anna Norvell, and a brother, Jack Norvell, both of Tulsa; and four grandchildren.