Converting an Ordinary Nonprofit into a Community Based Development Organization (CBDO) (For Social Services Agencies Wanting to Participate in CDBG)

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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).