Module

Impact of Community-based Organizations

Overview:

This module will take a look at community-based organizations and what they can do to
help people who are undergoing community growth; the fundamentals of community-based
organizations and what distinguishes them from other non-profits. While this can include
governmental organizations and government assistance, it also includes community-based
organizations. The various forms of community-based organizations, as well as the benefits
and drawbacks of the concept in terms of community growth, will be discussed. Additional
information will be provided about how a group can create its own community-based
organization if it so desires.

Desired Learning Outcomes:

By the end of this module students must have:

1. understood the role of community organizations to development;

2. identified the different types of Community-based Organizations
3. got familiar with the advantages and disadvantages

Introduction:

With Community Development, multiple powers and sources of action can work
together to bring about changes and improvements in a society. A society that wants to
change itself isn't limited to what's right in front of it. The average citizen may be the
primary participant in the community development process, but they also enlist the
assistance of broader organizations both within and outside the community.

You identify some Community-based Organizations around you?

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Abstraction

Impact of Community-Based Organizations

Community-based organizations, or CBOs, are local non-profit groups that works to

generate improvements within a community on the local level. They are basically the
community development process in the form of a formal organization. They are usually
locally formed, locally staffed, and their actions are specific to the location they operate in.
Most CBOs are mainly volunteer organizations, with few paid positions as most of their
funding is delegated towards completing the group's objectives. Their local status also
means that they may be limited in what resources they have access to, depending on the
geographical location of the CBO and the community it serves.

Since they are so localized, a CBO is only going to tackle issues within the
community they operate in. This does not mean that CBOs only focus on minor things; large
scale issues like crime and poverty are common areas of interest for CBOs. These groups
are free to look at issues that exist outside of their community that are affecting the
community itself, but they will just look at how those issues impact things within that
particular space. In some instances, a CBO may collaborate on an issue outside of its
community with another CBO. This usually happens when there is some overlap in regards
to their areas of interest, such as shared geographic boundaries between the two
communities. They may also look at how a larger issue is being handled in other
communities and by other CBOs in order to find guidance or alternative
solutions. Otherwise, it will remain within a specific community and not venture outside of it.

It should be noted that will most CBOs are considered to be a type of non-profit and
may operate similarly, they are not the same thing. Non-profits are usually large operations
that have a particular area of focus and methodology that they are addressing through
multiple projects and actions. A CBO is far more limited, usually handling a single project
pertaining to an area of focus purely within the community they present in. Aside from the
collaboration exception mentioned previously, a CBO will not exist outside of the
community they act in. They can be a part of or connected to a larger organization like a
regular non-profit, but they will not act as a branch of that organization outside of their
geographic focus. This does not mean that communities going through the community
development process are limited to working with either a CBO or a larger non-profit; they
can work with both if they so choose.

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What Role Do CBOS Play In Community Development?

Within community development, CBOs tend to serve primarily as the middleman for
resources and actions. Many larger groups, like non-profits, and intersecting communities
use CBOs as a way of interacting with those who are already at work on issues within the
community. A CBO is often how volunteers find public service projects that they can
participate in, as CBOs tend to be in the thick of things within the community. In a way, an
established CBO can attract and filter resources necessary for the community development
process.

CBOs also have a role in community development as the public voice of the community.
One of the best features of a CBO, due to their localized focus, is that it is a wealth of
information regarding the issues it is focused on within the community. They highlight issues
that need to be addressed and then include every relevant piece of data regarding those issues
for those that will be working on them. This includes details about what is wrong in the
community, what should be done to remedy the situation, what needs to be done, the
resources available, and the effects the issue is having on the community. For anyone who is
attempting to instigate the community development process in their community, including a
CBO in the process can help make things go smoothly.

Types of CBOS

Just as with any organization, not all CBOs are alike. The localized nature of a CBO
means that each one is going to be unique to the community it serves and to the interests it
has within that community. However, there are certain categorical types that these varied
CBOs tend to fall under. Each type usually dictates the structural and legal features of the
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CBO and impacts its operations. The most common include

Common Interest Groups-Also referred to as CIGs, these are usually organizations that
involve community members who have shared goal(s) and interest(s). These can be rather
simple and are flexible enough to be modified while still retaining its core structure. As a
result, CIGs are a fairly common CBO type present in communities and community
development.

Micro-Finance Institutions-These are CBOs that are focused on financial elements in

the community, like lending and savings. MFIs are not banks, per se, but they do offer
similar services for poor communities.

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Village Development Committees-VDCs tend to be CBOs that act as a collective
governance in villages. They have a set of rules that govern not only the VDC's actions, but
the community as a whole. A VDC can also be set up in addition to a village's current
government, and the two can work in tandem.

User Associations-Technically a type of CIG, user associations are similar to clubs where
the resources they provide to the community are applicable primarily to the association's
members. They can operate, maintain, and fund facilities using resources and money
obtained publically and/or privately.

Faith-Based Organizations-FBOs are CBOs and non-profits with a religious twist to

them. They can have similarities to other types of CBOs, depending on how they are
initially set up. There is quite a bit of controversy and criticism regarding FBOs, which does
mean that some of the disadvantages listed later in this article many be more of an issue
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for this type than others.

There are far more variations when it comes to CBOs than what is listed here. CBOs can
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be formal or informal, public or private. Their features can range along an entire spectrum
and back, so a CBO can take on any form that it needs to in order to accomplish its goals for
the community.

Advantages

A CBO offers a lot of advantages in the community development process when one is
included. Since a CBO is a type of non-profit organization, and the two will often be
associated with one another, several of the following are advantages that are also
applicable to the inclusion of a non-profit.

Tax-Exempt Status-CBOs are legally defined as a non-profit organization, and thus

have a similar legal standing. Not having to pay taxes for the actions taken by the group
can actually help if there is limited funding in the first place. Any money that the CBO earns
on its own-e.g. through fundraising-can be used to fund its efforts in full.

Tax-exemption status is also additional financial advantages, such as access to public

service announcements, advertising discounts, and reduced mail rates.

Direct Benefits-A CBO is designed specifically for the community it operates in, thus
ensuring that any benefits the organization offers goes to those it is intended for. Because

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the CBO's efforts are not going to those that don't necessarily need it or are being divided
in any way, the community is getting help in full. It makes it easier to make sure that the
issues in the community are getting as much attention as they need in order to find and
administer a solution.

Perpetuity-Since a CBO is an established organization, it is separate from any one

individual and is eligible for organizational perpetuity. Even if the person who initially began
and operates the CBO leaves for whatever reason-quits, retires, dies, etc.-the organization
isn't going to necessarily end because they are gone. It's a kind of immortality that allows it
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to continue so long as it has a purpose.

Liability Protection-The separation that CBOs have from individuals as organizations

means that they have some built-in liability protection in place. If a member's personal
actions lead to consequences like fines or lawsuits, the CBO isn't going to be impacted on
a legal standpoint. Should a CBO be sued directly or have any kind of legal consequences
for its actions, they it is able to have its own liability insurance coverage to protect it as it
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is considered a type of non-profit.

Disadvantages

Just as there are advantages, there are also disadvantages for CBOs. Again, these are
similar to what would be applicable for a standard non-profit due to the connection between
the two formats. Some of these disadvantages may be more applicable for certain CBOs due
to their type and other details.

Financial Restrictions-Money is often going to be an issue for any CBO, as their actions
are going to be dependent on the funding they have. Progression towards the group's goals and
their movement through the community development process can be delayed if there are any
financial issues at hand, like a lack of money. Fundraising and donations are often the only
source of money for a CBO, and that can restrict their abilities if there isn't enough.

Workforce-CBOs are dependent on people being involved in the organization, and

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their workforce is primarily made up of volunteers. While this can be a good thing-
volunteers tend to have a genuine passion for their cause(s)-it can backfire if there isn't
enough volunteers to get things done. People are busy, they have other responsibilities, and
that may mean that they don't have enough spare time to offer. They are a necessary
resource for CBOs and community development, and one person can only do so much.

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Social Pressures-Even when there is support within the community for CBOs and
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community development, there can also be resistance. The goals and/or methods of a
CBO may not have widespread acceptance in the community. It is incredibly important in
this regard for a CBO to pay attention to the atmosphere of the community and the
attitudes of its residents when it takes action. This is often the case with FBOs, as the
religious tenants of these organizations are not necessarily going to mesh with the beliefs of
everyone in the community.

How to Create a Community-Based Organization?

Depending on what it is you want to accomplish with a CBO in the community development
process, setting one up is actually a rather straight-forward process. The simple way to
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create a CBO includes the following :

Identify Needs and Goals-Why are you creating a CBO in the first place? What is it
that you hope to accomplish? What needs are there in the community that need to be
met? This is the purpose of the CBO, so you need to establish that before you can do
anything else. You may want to put together a mission statement detailing the CBO's
purpose and goals.

Choose Type, Structure-Consider how the CBO is going to be set up. You can have
an informal or formal group, which can impact things like the CBO's legal status and
operational reach in the community. It's best to choose the structure that fits the needs and
objectives you wish to fulfill. Take into account how you wish to accomplish those things,
not just what you want/need to accomplish.

Paperwork-If you are creating a CBO with a formal structure and are seeking
legal status as a non-profit, then you need to fill out and submit the proper paperwork.
Check with your local and state laws to determine what is needed to do so

Management-A CBO needs some kind of leadership in order for it to work, so the
details of its management need to be determined. Even a simple setup of a single leader
plus volunteers needs to be decided upon first.

Resources-Before the CBO can really do anything, resources need to be identified and
acquired. This means funding, volunteers/staff, and other materials necessary for the CBO's
operations.

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Evaluation and Application

Compare and contrast the following concepts:

1. Non-governmental Organization and Community-based Organization

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2. Non-profit and Government Organizations

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3. Community-based Organization and National voluntary organization

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REFERENCES:
Cavaye, J. (2004). Understanding Community Development. Retrieved
from http://increate.med-ina.org
Phillips, R., Pittman, R. (2009). An Introduction to Community Development. Routledge.
New York, USA. ISBN 0-203-88693-3 Master e-book ISBN.

Kenyon, P. (1994) Ready Set Go: Action Manual for Community Economic Development.
Municipal Association of Victoria, Melbourne.
Rivera, V. (2010) Content Development by Communities: Case Studies in the Philippines

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