WHAT IS A CBDO?: CBDOs are a type of nonprofit corporation
that are described in the federal regulations. To be a CBDO a nonprofit
must have a certain specified purpose stated in its articles of
incorporation and must have a certain structure to its board of
directrors specified in its bylaws.
ADVANTAGE
OF BEING A CBDO: Local
governments have greater flexibility in spending their federal
community development dollars (primarily CDBG) when they do business
with a CBDO.
SIMILAR
TO A "CHDO": A CBDO is to
"community development" what a CHDO is to "housing development" (CHDO
is short for "Community Housing Development Organization"). Local
government have more flexibility in spending their federal HOME housing
dollars when they do business with a CHDO. It is possible for a
nonprofit to be both a CBDO and a CHDO (although the
requirements are not identical). Click here for
more information on CHDOs.
BECOMING
A CBDO: To qualify as a
CBDO a nonprofit may have to amend its articles of incorporation and
bylaws. For the specific requirements of the Federal Regulations click here to view 24 CFR 570.204. In
general, the main requirements are as follows::
- The bylaws or
articles of incorporatino must identify a specific "geographic area of
operation"
- The board of
directors must have a certain structure
- The Articles of
Incorporation must state that "community development" is a primary
purpose.
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Convert your
Nonprofit to a CBDO
Click
Here for information on
the specific amendments that you will need to make to your Articles of
Incorporation and Bylaws (included are sample wordprocessing documents
that you can download).
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