Community-based organizations are a subset of non-profit organizations—a type of non-profit that works at the grassroots level to improve living standards and/or counter inequality within either a formal community (e.g., a neighborhood) or a group of individuals with related challenges (e.g., low-income families seeking access to affordable housing.) Any incorporated community-based organization is a non-profit, but not all non-profits are community-based organizations.
Community-based volunteering suggests a grass-roots effort, where people within a community band together to serve a cause. For example, neighbors may organize to clean up their neighborhood.
A non-profit organization is a registered corporation, trust, unincorporated association, or other type of organization exempt from federal income tax. Its makeup generally consists of a board, employees and volunteers – all of whom work towards a cause, bound by legal requirements and the five-year and annual plans designated by the board.