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**Rural Development**

**COMMUNITY DEVELOPMENT TECHNICAL ASSISTANCE**

**HANDBOOK**

**COMMUNITY DEVELOPMENT PROGRAMS**

November 2005

**OVERVIEW**

**COMMUNITY DEVELOPMENT TECHNICAL ASSISTANCE**

USDA Rural Development staff has a key role to play in helping rural
communities face the challenges that confront rural America. These
challenges include: responding to declines in rural population,
attracting and retaining jobs, providing quality housing and health
care, maintaining schools and improving education, building and
maintaining infrastructure, and protecting the rural environment. At
Rural Development, we are charged not only with funding projects and
programs to address these issues, but also with exploring creative ways
to accomplish these tasks with the highest level of efficiency and
effectiveness.

The purpose of this handbook is to provide information and guidance
concerning the community development technical assistance process and
the delivery of these services to Rural Development clients. This
handbook may be used in combination with other guidance including the
Community Development Programs briefing book and toolbox at:
[http://ocdi.usda.gov](http://ocdi.usda.gov/).

Most sections of this handbook have a bulleted list of action steps that
may be used to deliver quality technical assistance to rural
communities. While these lists suggest a process for each topic, the
actions listed may or may not be required in a particular situation.
On-the-ground knowledge and experience, coupled with the needs, desires
and capabilities of the customer should be used to adapt the suggested
action steps to a given situation.

**TABLE OF CONTENTS**

Page

SECTION 1: GENERAL COMMUNITY DEVELOPMENT PRINCIPLES 5

> 1.1 Policy 5
>
> 1.2 General Purpose/Background 5
>
> 1.3 Coverage/Eligibility 7
>
> 1.4 Authorities 7
>
> 1.5 Community Development Process 8

SECTION 2: PRACTICES for Working with all Communities 11

2.1 General Responsibilities 11

2.2 Community Assessment 11

2.3 Facilitation 11

2.4 Organizational Development/Partnership 12

2.5 Strategic Planning 13

2.6 Sustainable Economic Development 14

2.7 Small Business Development 15

2.8 Community Development Finance 16

2.9 Information Management 17

2.10 Marketing/Public Relations 18

2.11 Leadership Development 19

2.12 Volunteerism/Civic Participation 20

2.13 Training 21

2.14 Conflict Resolution/Alternative Dispute Resolution 22

2.15 Accountability 23

2.16 Budget Performance and Integration 23

SECTION 3: PRACTICES FOR WORKING WITH SUPPORTED COMMUNITIES 25

3.1 Administrative Assistance 25

3.2 Community Capabilities/Operations 25

3.3 Oversight of the Lead Entity 26

3.4 Monitoring/Oversight/Certification 26

3.5 Financial Procedures 28

3.6 Records and Reports 28

3.7 Delegation of Authority (EZ/EC Grants Set-Asides) 28

3.8 De-designations of EZ/EC 29

3.9 De-designations of Champion Communities 29

**TABLE OF CONTENTS (continued)**

EXHIBITS

Exhibit A Guiding Principles of Technical Assistance

Exhibit B Economic Analysis

Exhibit C Community Development Process

Exhibit D Group Assessment Form

Exhibit E General Facilitation Practices

Exhibit F Principles of Community Development Organization

Exhibit G Leadership Ability Assessment

Exhibit H Community Development Partners/Training Providers

Exhibit I Downloadable Resources for Community Development

Exhibit J Small Business Administration

Exhibit K Acronyms and Definitions

#  SECTION 1. General community development Principles

## 1.1 [Policy]{.underline}

The February 2003 Consistency Plan states that Rural Development
employees are now "charged with the responsibility of implementing the
community development principles of the mission area." These principles
were not enumerated in the Consistency Plan, but they can be gleaned
from current policies of the Rural Development leadership and from
authorizing legislation. Departmental policies indicate three main
principles that will guide Rural Development as it expands its role and
increases its ability to positively impact both economic opportunity and
the quality of life in rural America. They are:

-   Foster the development of regional approaches to economic issues;

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-   Provide leadership in the development of partnerships; and,

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-   Assist regions and communities in developing and executing
    comprehensive strategic development plans.

To realize USDA's goals for rural America, Rural Development will engage
its human resources with a broader range of partners and citizens, in
non-traditional types of technical assistance, to ensure the effective
impact of investments in rural communities.

Rural Development's technical and financial capital will be invested
within the context of broader economic and social forces, as well as
through projects created with broad local participation. Our objective
is to encourage communities to build upon a foundation of comprehensive
strategic planning and to help strengthen their capacity to do so.

Rural Development employees can contribute to these efforts. Already,
many employees engage our clients on some level during the development
process. Explaining financial program guidelines, conducting home
ownership training, and marketing our programs at conferences are all
examples of current practices. The challenge now is for Rural
Development employees to get our clients to think about, and participate
in, the total community development process.

## 1.2 [General Purpose/Background]{.underline}

## 

The purpose of this Handbook is to provide new ideas and guidance for
the delivery of community development technical assistance to Rural
Development clients.

Community development is the process of developing a broad network of
interaction in order to increase community capacity, support sustainable
development and improve the rural quality of life. Rural Development's
mission is to assist communities in accomplishing these three primary
goals.

Community development has *two essential elements: "*the participation
by the people themselves in efforts to improve their quality of
living...; and the provision of technical and other services in ways
which encourage initiatives, self-help and mutual help and make these
more effective."[^1] Rural Development provides both financial and
technical assistance to communities to enable them to accomplish these
elements. In all its work, Rural Development seeks to increase the
element of 'sustainability' of our rural communities. For community
development initiatives to be defined as 'sustainable,' they must ensure
the needs of the present are met without compromising the ability of
future generations to meet their own needs.

Technical assistance is the activity of providing information or
services to Rural Development clients or staff in order to help them
accomplish a goal or complete an activity that contributes to improving
their community. For Rural Development, there are two approaches to
technical assistance. The first is the *community approach* where Rural
Development assists to create and facilitate the community development
process. The second is the *informational approach* where the community
development process already is functioning well and our role is to
provide information.

Both approaches require local involvement with clients by Rural
Development (Agency) staff. Beyond the benefits to the community, this
technical assistance allows Rural Development (staff) to gain a greater
understanding of the broader issues and forces at work and enables them
to determine what communities want and need, as well as the strategies
that can meet those needs. Staff is thus better prepared to deliver
assistance. See Exhibit A: Guiding Principles for Technical Assistance.

The purpose of community development technical assistance is twofold.
First, it is to increase the effectiveness and impact of citizen efforts
to improve their economic opportunity and quality of life. Second, it is
to increase the effectiveness and impact of Rural Development's
investment in rural communities. This is accomplished by providing to
local citizens, businesses, and community groups the information,
education and other support that improves their capacity to create
change.

Research studies, departmental policy statements, and recent rural
legislation reaffirm that the quality of assistance we give is key to
building successful rural communities. The simple commitment of capital
is not sufficient. Maximizing the return on Rural Development's capital
expenditures requires that we invest in articulated strategies that
address the root causes of broader economic and social forces, on
projects created with broad local participation and consensus and those
based on a foundation of comprehensive strategic planning. See Exhibit
B: Economic Analysis.

## 

## 1.3 [Coverage/Eligibility]{.underline}

## 

Technical assistance for community development is available to any
community that is eligible to receive resources from Rural Development's
financial programs, but is limited to municipalities with a population
of 50,000 or less. However, where the client is a combination of smaller
governmental units whose combined population exceeds 50,000, this limit
does not apply.

## 1.4 [Authorities]{.underline}

**Technical Assistance to States and communities** \-- Pub. L. 92-419,
Rural Development Act of 1972; Pub. L. 96-355 Rural Development Act of
1980 (7 U.S.C. 2204).

**Coordination within the executive branch for community development**
\-- Pub. L. 92-419, Rural Development Act of 1972 (7 U.S.C. 2204a).

**EZ/EC** \--section 13301 of Pub. L. No. 103-66, Omnibus Budget
Reconciliation Act of 1993; subtitle F of Title IX of Pub. L. No.
105-34, the Taxpayer Relief Act of 1997; section 766 of Pub. L. No.
105-277, the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act of 1999;
subtitle A of Title I of Pub. L. No. 106-554, the Community Renewal Tax
Relief Act of 2000.

**Conduct assessments to determine program applicability** \-- Pub. L.
92-419, Rural Development Act of 1972; Pub. L. 96-355 Rural Development
Act of 1980 (7 U.S.C. 2204b).

**Develop systems of outreach** \-- Pub. L. 92-419, Rural Development
Act of 1972; Pub. L. 96-355 Rural Development Act of 1980 (7 U.S.C. 2204
; 7 U.S.C. 2204b).

**Design program delivery systems and tools, remove impediments to
effective community level action** \-- Pub. L. 92-419, Rural Development
Act of 1972 ; Pub. L. 96-355 Rural Development Act of 1980 (7 U.S.C.
2204; 7 U.S.C. 2204b).

**Rural Community Advancement Program (RCAP) strategic planning
provisions** \-- Pub. L. 104-127, Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 1921 Subtitle F).

**Rural Economic Area Partnership (REAP) Zones** \-- Presidential
Memorandum dated August 5, 1993; variously dated Memoranda of Agreement;
Pub. L. No. 106-387, Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act of 2001.

## 1.5 [Community Development Process]{.underline}

One of the most effective methods for communities to improve their
social and economic quality of life is to engage in the community
development process, especially one built on a foundation of strategic
planning. The leaders of underserved and distressed communities
frequently do not have the technical background necessary for guiding
such growth and change efforts. In the absence of professional community
development consultation or training for community leaders, financial
assistance is many times not effective in building sustainable
communities and lessening their dependence on public resources. Rural
Development staff can provide this professional consultation and
training.

The definition of community development used by USDA is, "The skilled
process of developing a broad network of interaction in order to
increase the capacity of communities to help themselves achieve a
locally-sustainable healthy economy and an improved quality of life."
This definition focuses primarily on the development of social capital,
which is one of four resources upon which community development is
built. According to Robert D. Putnam, social capital

refers to features of social organization such as networks, norms, and
social trust that facilitate coordination and cooperation for mutual
benefit. The other three capital resources are human, natural, and
financial. Of these, social capital is the key element in a community's
ability to solve its own problems.

In this context, the community development process is simply a set of
activities that follow a natural order. Economist J. Norman Reid
described it as requiring a "sequence of accomplishments---much like
climbing the steps of a staircase. For each community, these steps may
come in different order, but in all communities they will require
development over a period of years."[^2] Reid describes these steps as:

-   Building hope that a different, better future is possible,

-   Creating a vision of a better future and a strategy for achieving
    it,

-   Turning the strategy into a concrete work plan with measurable
    objectives,

-   Finding resources to implement parts of the work plan,

-   Achieving initial successes that build confidence and relieve the
    most pressing needs,

-   Refocusing actions to achieve long-term, sustainable goals,

-   Revising the strategic plan to reflect changed conditions and
    experience from past projects,

-   Leveraging additional funding from new sources,

-   Building community capacity to plan, manage projects, and

-   Continuous evaluation and improvement.

The community development process has a variety of forms and can take
place in a variety of ways. It can be a single, community-wide,
comprehensive strategic planning process that involves representatives
from all parts of a community and is led by local government. It can
also be any number of different sized initiatives, addressing a wide
range of issues, involving different groups (both formal and informal)
within the same community who may or may not be coordinating their
efforts. What they all have in common is the shared value of improving
the quality of life in their community.

"Community" is not only a geographic term. Communities can also be
defined by common cultural heritage, language, and beliefs or shared
interests (sometimes called communities of interest). Even when a
community does refer to a geographic location, it does not always
include everyone within the area.

At the introductory level, agency marketing of programs and outreach
involves initial contacts with citizens, organizations, and local
governments. Through these efforts, the public becomes aware of Rural
Development's resources. At the same time, Agency staff can familiarize
themselves with the stakeholders, available resources, local issues and
opportunities for involvement.

The second level of involvement is assessment. After an initial contact
with a community member or group, agency personnel can assess a
community's needs and assets and how (or whether) Rural Development can
assist. At this critical stage, a determination is made whether the need
is for community development process assistance, is simply
informational, if the situation can be resolved with agency financial
resources, or whether a combination of these is called for.

The third level is the actual commitment of agency resources. The
possible range of responses is limitless, depending upon the position
and skills of the employee and the nature and complexity of the
community's needs. It can range from an employee becoming a member of a
local task force to facilitating a long-term community-wide strategic
planning process. It may be as simple as providing a referral to another
organization for resources. Conversely, the needs may require
considerable staff expertise in non-profit board development. Section 2
contains an outline of many of the possible activities Agency staff may
undertake in the course of their community development duties.

Regardless of the type of technical assistance provided to a community,
the agency focus should be on capacity building. When government is in
control of the economic and social development of a community, jobs may
be created, services provided and infrastructure built. However, the
community will not have developed the capacity to manage itself, make
decisions, or its long-term well-being. Such communities will remain
dependent on outside expertise and assistance and never be truly
developed. In other words, Rural Development's role is to "do with", not
"do for" or "do to."

The community development process helps to build community capacity to
address issues, to take advantage of opportunities, and to find common
ground and to balance competing interests. It does not just happen -- it
requires a conscientious effort to do something (or many things) to
improve the community. Furthermore, the process is as important as the
result.

The purpose of the community development process is to increase the
effectiveness of citizen efforts to improve their quality of life. This
is accomplished by providing local citizens, businesses, and community
groups, information and education that improves their capacity to create
and manage change. Among the possible outcomes are: improved incomes,
increased employment, enhanced leadership, better value of diversity,
and improved environmental stewardship among others. In effect this is
wealth building \-- not only financial, but in broader ways \-- as
members of a community value more highly both themselves and their
abilities to take control of their future. See Exhibit B: Economic
Analysis and Exhibit C: Community Development Process.

**SECTION 2. PRACTICES FOR Working with ALL CommunitIES**

## 

## 

## 2.1 [General Responsibilities]{.underline} 

Numerous technical assistance options are available to assist
communities with their community development processes. In Section 2,
you will find information regarding some of the general types of
processes applicable to any community:

-   Community Assessment (2.2)

-   Facilitation (2.3)

-   Organizational Development/Partnership Building (2.4)

-   Strategic Planning (2.5)

-   Sustainable Economic Development (2.6)

-   Small Business Development (2.7)

-   Community Development Finance (2.8)

-   Information Management (2.9)

-   Marketing/Public Relations (2.10)

#### Leadership Development (2.11)

-   Volunteerism (2.12)

-   Training (2.13)

-   Conflict Resolution (2.14)

-   Accountability (2.15)

-   Budget Performance and Integration (2.16)

# 

## 2.2 [Community Assessment]{.underline}

**Definition:** Community assessment is the process of collecting and
using data to make informed decisions about the goals and directions of
a community. More specifically, community assessment is the use of a set
of tools and data which allows a community to reveal and understand the
strengths, assets, weaknesses, trends, and opportunities within the
local socio-economic environment. This information can then be used by
the community to develop appropriate strategies to address priority
issues.

**Goal:** Provide rural communities and groups with knowledge and
information upon which citizens and agency staff can make more informed
decisions. Staff, stakeholders and citizens should be involved at all
stages of the process in order to increase the confidence in the
validity of the findings.

**Action Steps**[^3]**:**

-   Provide communities with community assessment tools when requested.
    See Exhibit D: Group Assessment Form.

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-   Maintain current knowledge of community assessment and economic
    analysis techniques.

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-   Maintain current databases of relevant statistical information
    covering geographic areas of responsibility.

-   Maintain list of resources available for community assessment and
    economic analysis, both in terms of data and individuals available
    to assist communities.

-   Help communities utilize data to evaluate alternative strategies for
    community economic development.

-   Publicize fact sheets to demonstrate the linkages between the major
    development strategies and local economic changes.

-   Assist communities generate local data to inform their
    decision-makers and developing strategies for community development.

-   Publish or distribute community socio-economic profiles to raise
    public awareness of local economies.

-   Coordinate community forums or host workshop meetings to disseminate
    information about national and local trends and how they may impact
    local economies.

-   Facilitate the visitation of state resource teams to a community.

## 2.3 [Facilitation]{.underline}

**Definition:** Facilitation is a process of stimulating group and
community interaction and discussion while supporting members in
defining their overall goal(s). A person or facilitator contributes
structure and process to group meetings and interactions so that members
are able to function more effectively. Facilitators do not guide meeting
content. An effective facilitator is a valuable asset in contributing
structure, and process to group meetings, without taking the driver's
seat.

**Goal:** Help groups define their specific objectives and also assume
responsibility to take the lead.

**Action Steps**[^4]**:**

-   Facilitate external groups by utilizing a number of processes to
    help members assess their needs and guide group discussions
    including: asset mapping, visioning, brainstorming, root-cause
    analyses, priority setting or other structured processes.

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-   Provide groups with printed resources for facilitation development,
    such as Community Development Program's tech note *Facilitation:
    What It Is and When to Use It*. The technote can be found online at:
    <http://ocdweb.sc.egov.usda.gov/technotes/tn4.pdf>.

-   Teach staff and communities the basics of facilitation skills. See
    Exhibit E: General Facilitation Process, and

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-   Use facilitation techniques to help organizations move forward
    toward their goals and objectives. See Exhibit D: Group Assessment
    Form and Exhibit E: General Facilitation Practices.

## 2.4 [Organizational Development/Partnerships]{.underline}

**Definition:** An organization is a group of people intentionally
organized to accomplish an overall, common goal or set of goals.
Organizations can range in size from two people to tens of thousands.

**Goal:** Assist in the development of sound organizations able to
clarify and demonstrate purpose, objectives, plans, policies, and
procedures in order to achieve overall goals.

**Action Steps**[^5]**:**

-   Identify USDA and other resources to support the development of the
    organization's board leadership.

-   Provide printed resources to guide organizational development, such
    as Community Development Program's *Non-Profit Start-up and
    Management* website
    [http://www.ezec.gov/toolbox](http://www.ezec.gov/toolbox/index.html).
    The *Applying for 501(c)(3) Tax-free Status* technote is also useful
    and can be found online at
    <http://ocdweb.sc.egov.usda.gov/technotes/tn16.pdf>.

-   Assist targeted community organizations with the development of
    by-laws, operations manuals, and other management documents.

-   Assist the development of community based partnerships. Visit
    <http://www.ezec.gov/toolbox/index.html> for ideas and opportunities
    for enhancing community partnerships.

-   Provide technical assistance and advice sufficient to guide a
    Strengths, Weakness, Opportunities and Threats (SWOT) analysis,

-   Provide advice on overcoming weaknesses identified in SWOT analysis,

-   Provide advice on taking advantage of opportunities identified in
    SWOT analysis, and

-   Grant priority in financial programs within which funds are
    available to carry out the above functions, i.e., Rural Business
    Opportunity Grants (RBOG). See Exhibit F: Principles of Community
    Development Organization.

## 2.5 [Strategic Planning]{.underline}

**Definition:** Strategic planning is a community-driven process that
lays out a blueprint for change within that community. It takes a
community from an abstract vision of development to a series of specific
actions. A strategic plan is a tool that can help communities change and
grow. A strategic plan will help a community see where they want to go
and help them make decisions regarding how to get there. Rural
Development staff should be key players in helping communities with the
process of deciding what actions will best make their "vision" a reality
and what resources are available. Staffs need to be careful NOT to make
the decisions for a community.

**Goal:** Assist rural communities to create self-sustaining, long-term
economic development through innovative and comprehensive strategic
plans developed and implemented by alliances among private, public and
nonprofit entities. Staff should assist rural communities and American
Indian tribes in designing strategic plans that look at the big picture
and help them decide what is important and what will get them where they
want to go. Strategic planning is part of the community development
process which is built on an ongoing progression of planning,
implementation, and evaluation. Rural Development staff should be
trained in strategic planning and involved from the start to wherever it
takes the community.

**Action Steps**[^6]:

-   Provide leadership in encouraging tribes and rural communities in
    assessment and planning.

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-   Market your strategic planning skills and identify others who may be
    able to offer assistance in any strategic planning efforts.

-   Utilize the State Rural Development Councils, state and federal
    agencies, and local development organizations as vehicles for
    assisting in data collection and other aspects of the design of
    strategic plans.

-   Assist in identifying a lead entity within the community or Tribe
    that can provide adequate leadership and represents a broad range of
    people based on economics, race, gender, age and other
    socio-economic factors. Attempt to get as many people involved as
    possible in the strategic planning process. You should ask yourself
    if your planning meetings really reflect what the community looks
    like.

-   Assist in the production of a community profile or assessment to
    help determine where needs are not being met and help identify
    people and resources needed to carry out the plan. Rural Development
    staff should take a leadership role in assessing needs in rural
    communities.

-   Help discover as many resources as possible that can be utilized by
    the community for strategic planning, project implementation and
    general administrative and operational kinds of activities.

-   Help discover where to get resources both within or outside Rural
    Development to help communities resolve problems or implement
    projects.

## 2.6 [Sustainable Economic Development]{.underline}

**Definition:** Sustainable economic development is a goal-oriented
activity designed to improve the quality of economic life within a
community or region. It allows companies and communities to prosper,
while staying inside the sustainable environmental limits of the
community. The process begins with an effort to make the community place
ready to accommodate economic development opportunity for all and
provides the groundwork for increased equity and access to economic
opportunities.

**Goal:** Increase the rural community's ability to grow a successfully
diverse and sustainable economic base.

**Action Steps**[^7]**:**

-   Regularly attend meetings and establish membership with local and
    regional development organizations and groups.

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-   Foster the creation of economic development corporations, community
    development corporations, and other organizations with a regional
    approach and maintain partner/mentor relationships with them.

-   Encourage local business and educational institutions to produce
    research that will result in the identifying new opportunities to
    diversify local and regional economies.

-   Provide (or provide linkage to) technical assistance with historic
    preservation as a tool of local economic development.

-   Develop, foster, and maintain strategic alliances among agencies and
    organizations actively engaged in business and job creation efforts.

-   Support, through technical assistance and partnerships, downtown
    revitalization initiatives (for example, the Main Street Program).

-   Maintain exposure to current developments in economic research and
    its applicability to state economic conditions (e.g. clustering) and
    issues in community development finance through newsletters and
    attendance at local, regional, state and national conferences on
    development finance.

-   Work through partnerships with other agencies to create forums for
    the discussion and development of local, regional and state policies
    to overcome barriers to development.

-   Foster the creation of small business incubators (and incubation
    programs and activities) through partnerships with other agencies
    and organizations using Rural Development funds, where possible.

-   Maintain current knowledge of trends affecting small business in
    your state or region.

-   Create visitation, retention and expansion initiatives for local and
    regional communities through technical assistance efforts.

-   Educate communities regarding the importance of creating a favorable
    business climate through workforce development.

-   Foster the perception of Rural Development's coordinating role among
    state, regional and local governments and organizations. See Exhibit
    H: Community Development Partners/Training Providers and Exhibit I:
    Downloadable Resources for Community Development.

-   Collaboratively create forums among economic development
    stakeholders to identify the impediments to development and capacity
    building and encourage the formation of effective state and local
    rural development policies.

-   Foster a sense of cooperation between local organizations and
    Federal agencies.

-   Help communities create the capacity to identify comparative
    advantages and new markets, to include clustering opportunities and
    visioning (to define community goals).

-   Encourage communities to move from a producer to a market
    orientation.

-   Ensure that each community regularly addresses the communications,
    transportation, energy, land and other infrastructure needs of
    entrepreneurs.

-   Actively support or create networks for regional entrepreneurial
    development and mechanisms for sharing resources, ideas, and
    information. These should be linked to educational institutions and
    enterprise.

-   Ensure there is adequate professional and entrepreneurial education
    from primary school through university and adult education.

-   Ensure that the agricultural community is included in all economic
    strategies, especially as it applies to diversification,
    value-added, energy and sustainable agriculture.

## 2.7 [Small Business Development]{.underline}

**Definition:** Small business development fosters community solutions
to small business creation, expansion, and improvement in managerial and
market efficiency.

**Goal:** To create viable, sustainable small businesses that add
livable wage jobs and a diversified economic base to rural communities.

**Action Steps**[^8]**:**

-   Provide one-on-one counseling to existing businesses on issues of
    management, marketing or finance.

-   Encourage new business start-ups through organizing/sponsoring
    workshops on business planning, market segmentation, etc., with
    other partners/agencies.

-   Participate with/in, and encourage organizations promoting early
    stage business awareness and experimentation.

-   Regularly publicize and dissemination information regarding Rural
    Business Program funds, i.e. Rural Business Opportunity Grants
    (RBOG), Rural Business Enterprise Grants (RBEG), Intermediary
    Relending Program (IRP) and Rural Economic Development Loans and
    Grants (RDLG) and their geographic availability to end users,
    especially from local offices.

-   Assist in establishing initiatives that provide outreach and
    technical assistance to address the unique issues of minority
    business development.

-   Maintain lists of small business assistance resources (counseling,
    credit and capital) and disseminate through and within the agency.
    See Exhibit J: Small Business Administration.

-   Through educational programs, conferences, etc., maintain current
    knowledge of trends affecting or relating to small business.

-   Encourage, foster and create formal and informal networks of
    entrepreneurs.

## 2.8 [Community Development Finance]{.underline}

## 

**Definition:** Community development financing utilizes public or
private capital to foster entrepreneurship and create sustainable,
livable-wage jobs in a community and a diversified economic base. The
creation of capital for development can be accomplished in a variety of
ways: through traditional lending, federal or state grants and/or loans,
revolving loan funds, issuance of public instruments (bonds), venture
capital funds, public/private ventures, etc.

**Goal:** Increase the rural community's ability to successfully access
diverse sources of capital that will assist in improving its economic
sustainability.

**Action Steps**[^9]**:**

-   Maintain current knowledge of economic development financial
    instruments through educational programs, conferences, etc.

-   Establish relationships and work with regional development,
    planning, community action agencies, and other organizations with
    the goal of increasing utilization of Rural Development programs.

-   Network with local and regional partners and stakeholders, increase
    awareness of what financial programs exist throughout the Federal
    government and provide instruction and assistance in identifying
    them, learn how to use them, and what the rules are.

-   Provide direct technical training to help communities increase their
    capacity to understand deal structuring, applicable programs, and
    funding agency\'s priorities and policies.

-   Sponsor and participate in conferences, seminars, workshops,
    business expos, etc., to promote both creative and traditional uses
    of Rural Development programs.

-   Create and participate in active forums with stakeholders addressing
    barriers to capital in rural areas.

-   Assist in creating capital pools that can be accessed by potential
    and existing entrepreneurs.

-   Assist communities in accessing capital from broader units of
    government.

-   Assist in the planning, development and operation of new and
    innovative conferences that address multi-generational community and
    economic development topics that include youth, teenage, and young
    adult and elderly as vital community members and actors.

## 2.9 [Information Management]{.underline}

**Definition:** Information management identifies resources to help
communities and Tribes implement strategic plans, community assessments,
and engage in other forms of productive community development activity.
Rural Development staff should know where human and financial resources
are, and how to use them. Staff should know where to acquire printed
material and how to use Internet websites like the Notice of Funding
Availability and Federal Funding Sources for Rural Areas websites, both
located at [http://www.ezec.gov](http://www.ezec.gov/). In short, Rural
Development staff should be aware of and utilize all tools available to
assist communities create opportunities for economic and community
growth in rural America.

**Goal:** Access information to assist communities and Tribes in their
community development activities. This information should contain
statistical and demographic, human and financial resources including
names, telephone numbers, fax numbers, email addresses, postal addresses
and program information of each available resource. Staff should review
resources on a regular basis so that rural communities receive the best
information possible. This information may be maintained individually or
centrally within an office as determined by state policy.

**Action Steps**[^10]:

-   Compile an information database of all local, state, federal,
    tribal, private and other community development resources. For
    example, group topics by community assessments, strategic planning,
    financial resources, evaluation, etc.

-   Maintained a file on each resource provider.

-   Maintain electronic bookmarks of community development websites that
    can be shared with rural communities, development organizations, and
    Tribal groups.

-   Maintain vertical files of community development information,
    booklets, and brochures that include Rural Development and non-Rural
    Development resources and program information.

-   Utilize the Community Development Programs websites to provide
    technical assistance to rural communities and Tribes. These websites
    provide a wealth of information regarding strategic planning,
    available resources and links to other community development
    websites.

-   Establish a formal and informal process of providing rural
    communities and Tribes with community development information on a
    monthly basis in local Rural Development offices. The primary
    purpose is to provide information regarding Rural Development
    programs and initiatives, and any other information that might be
    helpful.

-   Regularly disseminate information about effective rural community
    and economic development strategies and methods to communities and
    Tribes in your area. Use strategies and methods that others have
    found to be effective and productive within their communities.

-   Promote networking among rural communities and rural development
    practitioners, and facilitate the leveraging of resources for
    community development and technical assistance whenever possible.

-   Develop group email lists of community and Tribal leaders. Use the
    Internet to send these people current information and material that
    you receive from other community development sources.

-   Maintain good communication and relations with members of the state
    Rural Development staff in order to be aware of in-house programs,
    earmarks, set-aside, initiatives and other related community
    development activity.

-   Establish a network of community development professionals in the
    area/state to share information and to discuss new and innovative
    methods of community development. There are many people working on
    community development activities, and most are eager to share their
    information, materials and expertise.

## 2.10 [Marketing/Public Relations]{.underline} 

**Definition:** Marketing is the process of satisfying the customers'
desires. Marketing involves determining the needs and objectives of
communities, and developing a strategy through use of programs, both
financial and technical, to meet those needs and objectives. The need
may be met by utilizing Rural Development financial and technical
assistance, delivering the right information in a timely manner and/or
utilizing products or services of other entities.

**Goal:** Gain greater knowledge and utilization of available resources
in areas most able to use them or most in need of the resources.

**Action Steps Within Field Offices**[^11]**:**

-   Inform communities of products and services of Rural Development
    through meetings, written materials, media, electronic information
    and all other communication methods.

-   Determine community needs and seek measures acceptable to the
    communities to satisfy those needs (e.g. strengths, weakness,
    opportunities, threat (SWOT) analyses, map analysis program (MAP)
    assessment, focus groups, etc.).

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-   Determine where services are most needed and where resource use will
    be most effective through the utilization of census data,
    demographic information and similar information. Ensure resources
    are used in those areas.

-   Foster a network of partners, resource providers, and development
    expertise to collaborate in delivering resources.

-   Create, foster and participate in forums, conferences and meetings
    to form working partnerships between resource providers and
    communities.

-   Assist communities in developing plans and projects and establishing
    priorities that reflect the needs of the communities.

-   Maintain relationships with intermediaries to market Rural
    Development products and services.

-   Assist communities in public outreach, marketing and communications.

**Action Steps Within Communities:**

-   Encourage organization committee members to develop a Marketing work
    plan. The Community Development Programs' on-line benchmark system
    is an excellent tool that can inform you in this process. Work plans
    should include objectives that implement the strategy. The goal is
    taken from the strategic plan and strategies are tied to the
    objectives. See the Benchmark Management System (BMS) at:
    [http://ocdx.usda.gov](http://ocdx.usda.gov/).

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-   Encourage communities to publish strategic plans in local
    newspapers, etc.

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-   Encourage communities to develop a Marketing plan (inclusive of
    local talent).

-   Encourage communities to develop a Fundraising proposal.

-   Encourage communities to celebrate successes!

## 2.11 [Leadership Development]{.underline}

**Definition:** Leadership Development is a process of helping people
develop their inner strengths for the benefit of the community. For
example, persons in leadership training learn about their personality,
emotional intelligence, creativity, leadership style, selling skills,
team role preferences, relationship skills, ability to handle stress,
and mental toughness in order to better understand the impact they have
on others and how to perform more effectively. Community Development can
only be sustained over a long period of time if there are motivated and
committed local leaders to keep the community development process going.

**Goal**: Ensure that a constant supply of new people are being trained
and encouraged to assume leadership positions within rural areas.
Leaders need to understand leadership functions and issues such as team
building, networking, and collaboration.

**Action Steps**[^12]**:**

-   Provide training that is sufficient to equip staff with leadership
    skills, techniques, and theory to enable them to conduct leadership
    training in local communities.

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-   Provide annual leadership training for at least one community/Tribe
    within their area of responsibility.

-   Assist rural communities in their efforts to train and encourage
    people into leadership positions. It is important to encourage rural
    citizens to seek leadership positions at all levels whether it be
    local, state, or on the national level.

-   Provide communities with printed resources for leadership
    development, e.g. Community Development Program's *Leadership
    Development* technote,
    <http://ocdweb.sc.egov.usda.gov/technotes/tn12.pdf>, and utilize
    Rural Development's financial programs to assist with capacity
    building and leadership development.

-   Help communities seek out underrepresented groups to participate in
    leadership positions or leadership development activities and
    training.

-   Work with schools in local communities and Indian reservations to
    engage and involve students in community development activities.
    Youth are the community leaders of the future.

-   Ensure that Rural Development leadership development activities are
    publicized in local and regional newspapers. Television coverage of
    leadership development activities will help introduce new leaders to
    their communities.

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-   Encourage people from disadvantaged groups to participate and take
    leadership roles. Cultivate these new leaders to take ever
    increasing responsibilities and provide them with encouragement and
    assistance where needed. See Exhibit G: Leadership Ability
    Assessment.

## 2.12 [Volunteerism/Civic Participation]{.underline}

**Definition:** A volunteer is a person who offers one's service to the
community of his or her own free will without pay. However, volunteers
are anticipating something in return for their service, whether it is a
sense of participation or belonging, making a contribution to their
community or recognition of their efforts.

**Goal:** Increase the number of people actively volunteering to serve
rural communities on projects to improve economic vitality or quality of
life.

**Action Steps**[^13]**:**

-   Identify, develop and work with volunteer organizations that might
    assist rural communities and Indian reservations with community
    assessments, strategic planning, economic and community development
    projects and related community service programs.

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-   Encourage all sectors of the community -- including political
    leaders, the active, the unemployed, the disabled, the elderly, the
    retired, migrants, refugees, and the excluded -- to become involved
    in voluntary action.

-   Prepare lists of local groups/organizations in the local areas that
    are known to provide volunteerism for community projects. It should
    be noted these groups may volunteer for specific types of projects.

-   Provide the public with a central point of contact to find local or
    state-wide volunteerism resources. This includes a Web site,
    possibly the state Rural Development website, with both collected
    information and clear links to locally-accessible organizations and
    their web sites.

-   Support, encourage, and develop the efforts of young people to
    design and carry out community service projects, develop leadership
    skills, and fulfill their maximum potential within their community
    or Tribe. Staff will work with youth groups to involve them in
    community development projects and activities whenever possible.

-   Promote and facilitate the work of volunteers in their area and help
    to set up a network that will promote and assist with community
    development activities.

-   Develop formal and public recognition programs, with awards and
    certificates, for those groups that provide communities and Tribes
    with their volunteer services.

-   Learn the guiding principles of volunteerism, as well as techniques
    for recruiting, motivating, and rewarding community volunteers.

-   Teach local community leaders and organizers techniques for
    recruiting, motivating, and rewarding community volunteers.

-   Provide training to local volunteer groups to help them become more
    effective in their work with rural communities. Training in issues
    such as environmental impact, community organizing, and leadership
    may be useful to volunteers.

-   Work to link various streams of service, such as service-learning
    programs funded through the State Department of Education,
    welfare-to-work projects, court-ordered projects, or other regional,
    state or federal initiatives to the volunteer community.

-   Provide examples of volunteerism efforts within their areas that can
    be used as models for volunteerism in other rural areas.

## 2.13 [Training]{.underline}

## 

**Definition:** Training is providing Rural Development staff and
communities with essential skills to guide community development
activities.

**Goals:** Employ innovative training techniques to strengthen Rural
Development's own capacity and that of the communities we serve by
creating and implementing innovative employee training strategies for
community and economic development.

Rural Development will nurture the capacity to provide technical
assistance sufficient to help rural communities become self-sufficient.

**Action Steps**[^14]**:**

-   Provide an opportunity for staff to earn professional recognition as
    Certified Community Specialists by proving their abilities and
    skills through a combination of education, career experiences,
    practical training (computer proficiency-including the ability to
    access resources and information from the internet), community
    development (understanding of the basic concepts of community
    development and empowerment with emphasis on community involvement,
    organizing, and leadership development), benchmarking (how to use
    them, why they are important, and the ability to train communities
    to use benchmarks effectively), strategic planning (familiarity with
    the process and how to do it) and readings from a specialized series
    of monographs.

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-   Convene an annual national training conference to provide a forum
    for intra-agency cross training, and to promote peer-to-peer sharing
    about effective strategies of program management.

-   Identify on-going staff community development training needs.

-   Develop a staff development plan which meets the community
    development training needs and goals of each area office, etc. (Set
    realistic expectations).

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-   Integrate training goals with goals in the individual performance
    plan and agency strategic plan. During evaluation, allow for
    variables which can hamper employee from achieving community
    development goals.

-   Develop a program of training (i.e. board training) that is
    responsive to the needs of rural communities expressing a desire to
    organize and plan strategically for community revitalization.

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-   Provide hands-on technical assistance to targeted organizations
    utilizing the Benchmark Management System.

-   Provide groups with printed training resources, such as the EZ/EC
    Community Development Training Conferences webpage
    <http://www.ezec.gov/About/conferences.html>. Community development
    training resources can also be found on Community Development
    Program's internal website at: <http://ocdi.usda.gov/training.htm>.

-   Seek out appropriate community and economic development training for
    staff, particularly those organizations with a focus on leadership
    development, housing, business retention and expansion,
    telecommunications, main street or downtown development, rural
    economic development, partnership development, business retention
    and expansion, internet as a marketing tool, transportation
    technical assistance, and performance measurement. See Exhibit H.
    Community Development Partners/Training Providers.

## 2.14 [Conflict Resolution/Alternative Dispute Resolution]{.underline}

**Definition:** Conflict resolution and alternative dispute resolution
(CR/ADR) are processes of managing or resolving differences among or
between community members or between a community and an external entity.
Conflict is generally understood to mean a disagreement or opposition of
interests or ideas, or the perceived situation where the parties or
member interests cannot be met simultaneously. Conflict can take a
constructive or destructive course, and resolution involves finding and
capitalizing on the opportunity inherent in the event.

**Goal:** Provide communities and/or organizations with the skills
and/or access to resources to assist them to solve problems productively
using conflict resolution tools and methods.

**Action Steps**[^15]**:**

-   Have a basic understanding and overview of CR/ADR principles and
    methodology.

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-   Identify key staff to develop competencies in CR/ADR and serve as
    technical resources to communities and organizations involved in
    conflict.

-   Maintains lists of CR/ADR resources and makes them available to the
    communities they serve.

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-   Serve as a resource to the agency.

-   Provide communities with printed resources for managing conflict,
    such as Community Development Program's *Dispute Resolution*
    (<http://ocdweb.sc.egov.usda.gov/technotes/tn1.pdf>) and *Conflict
    of Interest: What It Is and How to Avoid It*
    (<http://ocdweb.sc.egov.usda.gov/technotes/tn15.pdf>) technotes*.*

## 2.15 [Accountability]{.underline}

## 

**Definition:** Accountability is defined as having the responsibility
to ensure objectives are completed. Just as Rural Development is given
the responsibility to assist communities with their efforts, both the
communities and Rural Development are accountable for the resources we
use to achieve success. Staff are required to use the resources
entrusted to them in the most efficient and effective manner.
Communities do not succeed unless they, in turn, meet the expectation of
their citizens.

**Goal:** Use resources entrusted to Rural Development in the most
efficient and effective manner. To provide resources to the communities
for activities that reflects the needs of the communities.

**Action Steps Within Field Offices**[^16]**:**

-   Develop annual plans and methods for assistance to communities that
    reflect the needs and desires of the communities.

-   Create a system of review and evaluation to determine if the amount
    and quality of support is consistent with expectations and if
    progress of communities is acceptable.

-   Create a reporting system that accounts for resources and efforts
    expended in communities.

**Action Steps Within Communities**[^17]**:**

-   Encourage communities to develop written plans and projects for
    development that are consistent with the development desires of the
    community citizens.

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-   Ensure communities have a timetable for development and that they
    adhere to it.

-   Help develop boards to oversee community development efforts.

-   Develop financial monitoring and tracking system to follow and
    close-out projects that have been funded. Community Development
    Program's *Financial Management for Non-profit Organizations*
    technote, (<http://ocdweb.sc.egov.usda.gov/technotes/tn22.pdf>) is a
    good resource.

## 2.16 [Budget Performance and Integration]{.underline}

## 

**Definition:** A key element of the President's Management Agenda is
formally integrating performance review with budget decisions. Rural
Development is now required to produce performance-based budgets linked
to high quality outcome measures that accurately monitor the performance
of programs. Rural Development staff may have to identify, collect and
report on a broader range of performance indicators than in the past,
including Rural Development's community development functions. Also,
Rural Development management may require performance-based information
in addition to the minimum requirements of the budget and performance
integration process to report on the progress of Rural Development's
strategic plan and to better evaluate program delivery and optimum
resource allocation.

**Goal:** Ensure the community development functions are fully
integrated with the performance measurement requirements of the budget
and performance integration process and the program management
requirements of Rural Development management.

**Action Steps**[^18]**:**

-   Become knowledgeable of the community development components of
    Rural Development's strategic plan and how they relate to your
    activities.

-   Become knowledgeable about performance indicators for your community
    development activities.

-   Collect and disseminate information on community development
    performance indicators for Rural Development management.

-   Evaluate Rural Development performance indicators for your community
    development activities and report on their applicability and
    appropriateness to Rural Development management.

-   Maintain community development performance measure databases.

-   Input information on community development activities in a timely
    manner into automated systems for Rural Development strategic
    planning, reporting, and budget preparation requirements.

# SECTION 3. PrACTICES for Working with Supported Communities

## 3.1 [Administrative Assistance]{.underline}

## 

**Action Steps**[^19]**:**

-   Assist communities in preparing, updating and monitoring strategic
    plans.

-   Approve amendments to strategic plans, and ensure community boards
    or their lead entities make updates to the Benchmark Management
    System.

-   Assist communities in developing focused, feasible, and measurable
    benchmarks.

-   Ensure that benchmarked projects reflect a broad range of activities
    from the strategic plan in at least three different sectors
    (business, education, health, housing, etc.).

-   Assist supported communities in submitting Benchmark and Annual
    Reports on time and as needed.

-   Approve annual reports, and develop best practices for the Rural
    Development website from these reports.

-   Submit a best practice or success story at least annually for a
    newspaper, newsletter or similar publication.

-   Assist community boards to develop policies and criteria for
    selecting projects for funding in supported communities.

-   Approve the policies and criteria, and assure that they are made
    public.

-   Implement training conferences and networking opportunities.

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-   Identify funding or other assistance opportunities and assist with
    submission of applications for non-Rural Development funding and
    technical assistance.

-   Establish partnerships with other federal, state and local
    organizations.

-   Meet with the above organizations annually to inform each of
    opportunities to assist rural communities and participate in Rural
    Development initiatives.

-   Ensure that the community has developed plans in place that can
    sustain the community organization and its community and economic
    development activities.

## 

## 3.2 [Community Capabilities/Operations]{.underline}

## 

**Action Steps**[^20]**:**

-   Ensure that the community governing board annually conducts
    significant public outreach activities such as public meeting/event
    to gain input regarding revising its strategic plan. The strategic
    plan and benchmarks are to be reviewed annually.

-   Ensure that the board makes appropriate amendments to the budget and
    BMS to incorporate changes to the strategic plan.

-   Ensure that the board prioritizes the benchmarks/measurable outcomes
    so that sufficient resources are targeted to the most urgent and
    most important needs.

-   Ensure that members of the board are elected and appointed in a
    manner that:

> \- Encourages public involvement,
>
> \- Reflects a diverse and representative cross section of the
> community, such as public and private sectors, health, education,
> business, minorities, and low income,
>
> -Traditionally low income populations are represented, and.
>
> \- Ensure that the board adequately addresses all formal public
> complaints and has a procedure that outlines how this is done.

## 3.3 [Oversight of the Lead Entity]{.underline}

**Action Steps**[^21]**:**

-   Ensure that the Lead entity has current job descriptions for the
    governing board, the lead entity staff, and committees. These
    descriptions will clearly define the roles and responsibilities of
    all. All job descriptions will include monitoring, oversight and
    outreach.

-   Ensure that the community/lead entity has an up-to-date operations
    manual with personnel policies, and clear expectations for board
    members and staff.

-   Ensure that public input is used and reflected in community
    policies, programs, and activities,

-   Ensure that public outreach activities include traditionally
    underrepresented groups and the outcomes are positive and effective
    for the community.

-   Ensure that the governing board and lead entity have established
    active partnerships with major organizations in their geographic
    area, and that these partners participate in benchmark reviews and
    revisions and that these partners are satisfied with the level of
    collaboration with the lead entity.

-   Ensure that the local community/lead entity monitors the activities
    of benchmark leaders once any funds are disbursed.

## 3.4 [Monitoring/Oversight/Certification]{.underline}

## 

**Action Steps**[^22]**:**

-   All amendments or procedural changes to the strategic plan,
    benchmarks, budget and operations are reviewed and approved by the
    governing board and are reflective of the wishes of the community.

-   The community's benchmarks reflect the goals and objectives of their
    approved strategic plan and that the benchmarks reflect a reasonably
    broad range of activities from the strategic plan.

-   Communities are assisted in monitoring benchmark development and
    implementation to ensure that communities adhere to their strategic
    plan.

-   Committees and working groups are involved in implementing and
    monitoring benchmark progress.

-   The board monitors the activities of the benchmark committee
    leaders, and that the leaders periodically submit status reports to
    the board.

-   Benchmarks are implemented in a timely manner, are not wasteful of
    resources, and continue to capture the wishes and support of the
    community.

-   The state office will review the community annually for
    certification as a supported community At a minimum, the office must
    certify the community is complying with the following:

> \- Adhering to regulations,
>
> \- Including the wishes of the community in its strategic plan and
> benchmarks,
>
> \- Making sufficient progress with its strategic plan and benchmarks,
>
> \- Including all segments of the community in the activities, and
>
> \- Being fiscally responsible with the resources being used.

-   The governing board is the principal decision maker and has the
    responsibility of ensuring the activities are completed in an
    expeditious manner. At a minimum, staff should ensure they annually
    accomplish the following:

> \- Review and revise the strategic plan and benchmarks,
>
> \- Ensure board membership structure and composition is in accordance
> with existing regulations and by-laws (see 7CFR25.404b3),
>
> \- Annually solicit community public involvement and incorporate its
> input into the activities of the endeavor,
>
> \- Monitor and develop policies and procedures for resolving community
> and internal conflict and problems, and,
>
> \- Periodically report to the community and Rural Development, through
> weekly reports or other methods, the status and progress of important
> activities of the board.

## 3.5 [Financial Procedures]{.underline}

## 

**Action Steps**[^23]**:**

-   Rural Development field process grant obligation and drawdown
    requests in a timely manner and in accordance with national finance
    office procedures. Fund use will be monitored to ensure its use is
    in accordance with these procedures.

-   For Empowerment Zones and Enterprise Communities (EZ/EC) supported
    communities, staff will follow procedures issued at 7CFR25 and RUS
    Environmental Review Procedures. These instructions are presently
    published on the Community Development Programs internal web site at
    [http://ocdi.usda.gov](http://ocdi.usda.gov/).

-   Determine that all drawdown requests are valid and are associated
    with strategic plan goals and objectives and with resultant
    benchmarks developed to accomplish the goal and objectives, and have
    specific valid project uses planned for the near future.

-   Assist with monitoring of funds to assure there is no conflict of
    interest.

-   Ensure that audits are conducted every year, and that these audits
    are clean.

-   Ensure that audit findings are adequately addressed in a timely
    manner.

-   Staff will ensure that communities use congressionally earmarked and
    set-aside funds for projects that are included in the benchmarks and
    are relevant to the needs of the community as expressed through the
    strategic plan.

## 

## 3.6 [Records and Reports]{.underline}

**Action Steps:**

-   Ensure that all community reports are submitted as required by
    7CFR25.400.

-   Ensure that community boards or their lead entities maintain files
    of their activities that include, at a minimum, minutes of all
    meetings, records of all decisions made by the boards, financial
    records of all financial actions, and operations and personnel
    procedures and actions. The staff will periodically review and
    determine whether the records of the board or lead entity are
    adequate, and they will ensure that such records are adequate in the
    future.

## 

## 3.7 [Delegation of Authority (EZ/EC Grants Set-Asides)]{.underline} 

The Agriculture Appropriations Act contains set asides for EZ/ECs and
REAPs (Rural Economic Area Partnerships). Each year, Rural Development
agencies issue funding information, including notification of
availability of program funds earmarked for special usage. State Office
should verify and track eligibility of earmarked funds requests from
applicants located within eligible EZ/ECs and REAPs, coordinating with
National Office programs staffs. All projects funded with EZ/EC and REAP
earmarked funds must be an approved part of that community's strategic
plan and tracked in the Benchmark Management System prior to approval of
the funding request.

Communities utilizing set-aside funds must have a current strategic
plan, up-to-date benchmarks within the on-line benchmark management
system, funding records, and an annual narrative report. The appropriate
state director will determine the due date for submitting the annual
report. Benchmark progress reports should be kept current at all times
and should reflect those projects that are part of the community two
year work plan.

##### 1. Loan/Grant Processing

Requests for funds should be sent to the appropriate program division in
the National Office in accordance with applicable guidance provided in
RD Instruction 1940-L and RUS Staff Instruction 1780-5. The request
should clearly indicate that the funds are for an EZ/EC or REAP project
in a designated area. If the demand for earmarked funds exceeds the
amount available from the reserve, states may request a transfer of
funds for the EZ/EC or REAP project from their regular un-obligated
state allocation, or from the regular National Office reserve. The
National Office will notify the state office of the allocation of funds.

##### 2. Letters of Support

To assist EZ/ECs, Champion Communities, or REAP Zones in soliciting
financial or other support from federal departments and organizations,
Rural Development staff may provide a letter of support for projects
that are listed in the community's strategic plan. The purpose of the
letter of support is to encourage interested parties to provide funds or
other assistance to advance the goals envisioned in the community's
strategic plan.

Support letters as well as set-aside funds are only available to those
communities who have completed the required benchmark progress and
annual report as required by 7CFR 25.400. In addition, community
strategic plans, and funding records should be current.

## 3.8 [De-designations of EZ/EC]{.underline}

EZ/ECs were designated by the Secretary and can only be de-designated by
the Secretary. De-designation can occur for regulatory or statutory
non-compliance such as violating boundary requirements, lack of progress
toward achieving benchmark goals, use of grant funds for ineligible
purposes, or failure to act on board compliance issues.

## 

## 3.9 [De-designations of Champion Communities]{.underline}

The state director should review Champion Communities to determine
whether they are in compliance, have entered benchmarks, signed MOAs,
submitted their annual reports, and kept in touch with the State Office
regarding activities and progress. The Champion Communities were never
designated under statutory authority and therefore de-designation does
not take the more formal and extensive process that de-designating an
EZ/EC or REAP requires.

Annually, the National Office should prepare a list of Champion
Communities that have failed to meet criteria relating to keeping
benchmarks updated and submitting annual reports and shall recommend to
the appropriate state directors that such communities are candidates for
de-designation.

# Exhibit A

# Page 1 of 3

## 

## Exhibit A. Guiding Principles for Technical Assistance

Some guiding principles, upon which Rural Development's technical
assistance efforts are based, include:

-   The development of innovative and creative applications of programs
    and policies,

-   The creation of unique partnerships,

-   A strategic and comprehensive approach to planning,

-   A focus on the development of human capital, local community
    capacity and consensus,

-   Responsiveness and accommodation to unique local situations,

-   A focus on entrepreneurship,

-   Equity and efficiency,

-   The development of market-based approaches, and

-   A bottom-up approach.

**Duties and Responsibilities of Community Development Program
Directors, Community Resource Development Specialists or Liaison**

State and field offices are the delivery points for USDA's mandate to
provide leadership for the coordination of Federal programs at the local
level to ensure a cohesive system of service delivery to rural America.
Rural Development staffs play many roles during the conduct of their
mission. The following will assist with designing a richer and fuller
community development program within each state.

**State Offices Roles**

-   Identify emerging, state and local rural issues and needs.

-   Conduct long term Rural Development program planning for the state.

-   Coordinate the strategic planning efforts of Indian tribes with
    statewide strategic plans.

-   Develop and implement rural development pilot projects and implement
    rural development policy guidelines.

-   Design, maintain and monitor a rural development strategy
    formulation for communities.

-   Support communities participating in the Community Empowerment
    Program.

-   Monitor the community development activities of field offices in the
    state.

-   Manage day-to-day operations of Rural Development's community
    development mission in the state.

# Exhibit A

Page 2 of 3

**Community Development Staff Roles**

-   Provide leadership development for rural communities.

-   Support program areas of Rural Development and act as a liaison for
    rural communities.

-   Promote development tools and techniques for rural communities.

-   Provide innovative measures to other Rural Development program areas
    to better serve the communities.

-   Promote and develop collaborative partnerships within the federal,
    state and local governments.

-   Provide training, team building and capacity building to rural
    communities. Help remove barriers to development within a community
    by acting as a facilitator and providing training and guidance
    regarding strategic planning, benchmarking and funding issues.

-   Facilitate the leveraging of resources for community development and
    technical assistance.

-   Assist rural communities with the development and implementation of
    strategic and comprehensive planning.

-   Facilitate capacity-building within the public/private sectors to
    assure that the socially disadvantaged are provided the sustainable
    support necessary for them to improve their quality of life.

-   Assist USDA in targeting its resources to the most needy communities
    and populations.

## 

**Guidance for managers to transition staff specialist into community
development and technical assistance roles**

-   Develop a staff development plan which meets the community
    development training needs and goals of each area office, etc. (Set
    realistic expectations).

-   Integrate training goals with goals in the individual development
    plan and agency strategic plan. (During evaluation, allow for
    variable which can hamper employee from achieving community
    development goals.

-   Identify staff in need of community development training.

-   Survey resources available as well as needed to meet training need.

```{=html}
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```
-   Submit survey to Community Developments Program.

# Exhibit A

Page 3 of 3

-   Include core community development assistance in state strategic
    plan. Visit Community Development Program's internal website,
    [http://ocdi.usda.gov](http://ocdi.usda.gov/), for briefing book
    (i.e. output measures section) and community development duties and
    responsibilities information.

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-   Target the initial level of community interaction based on the
    number of staff and community development technical assistant needs
    of service area.

# Exhibit B

Page 1 of 2

## 

## 

## Exhibit B. Economic Analysis

Being successful in the community development process begins with an
accurate economic analysis. A number of strategies and tools can be used
to get a full picture of the community, which in turn improves the
likelihood of successful planning and action.

*Location Quotient* is the method of measuring a community's level of
self-sufficiency in a specific trade. For example, does a community meet
or exceed the demands of its population? This method helps determine how
much of a local economy in being lost to non-local sources.

*Potential Sales* calculate the amount of sales in a specific retail in
order to evaluate whether the potential is being captured by the local
economy.

*Multipliers* will determine how a community will be affected by an
external change. For example, if a new industry is brought into a town,
there will likely be a shift in the overall employment and wages of
separate, seemingly unrelated operations in the town. This method
predicts those changes.

*Employer Multiplier* is a method of determining how many new jobs will
be created or loss due to the economic impact of an external economic
change.

*Income Multiplier* is a method of determining the change in average
income due to the economic impact of an external economic change.

*Shift Share Analysis* is a method of finding how the overall national
and regional trends correspond with local trends. This analysis shows a
community's level of efficiency---exposing areas of potential growth
along with its particular strengths. Shift-Share analysis can be broken
up into three fundamental areas of comparison.

*National Growth Share* determines how community's growth rate is linked
to overall national trends of employment growth.

*Industrial Mix Share* determines the rate of growth in a particular
industry compared with national averages in that industry---is a
community facilitating industries that are growing faster or slower than
national trends.

*Local Share* determines whether local businesses are growing at the
same pace as similar businesses around the country.

*Population Employment Ratio* determines how many people are employed in
a specific trade within a city in order to compare the number to
national averages. This method looks for possible avenues of expansion.

*Pull Factor Analysis* is determining how far outside the city's
boundaries customers can be attracted.

# 

# Exhibit B

Page 2 of 2

*Reilly's Law* determines how far customers will travel to get the
product or service they are seeking.

*Trade Area Capture* determines how much business is drawn into a
community from outside sources, for a specific product or service.

Sources: *Planning Analysis: Community Economic Analysis Tools.*
[http://darkwing.uoregon.edu](http://darkwing.uoregon.edu/)

Hustedde, Shaffer, and Pulver. *Community Economic Analysis: A How to
Manual.* North Regional Center for Rural Development, Iowa State
University.

*Using Employment Data to Better Understand Your Local Economy.* Penn
State College of Agricultural Research and Cooperative Extension.
[http://www.cardi.cornell.edu](http://www.cardi.cornell.edu/)

# Exhibit C

Page 1 of 1

## 

## Exhibit C. Community Development Process

# Exhibit D

Page 1 of 3

## Exhibit D. Group Assessment Form

Only after addressing what is viewed as the current situation is it
possible to assist community organizational development. The following
survey questions taken from the Association of Quality Participation
Guide or a similar survey might be utilized to determine whether the
mission statement of an organization should be reviewed. The survey may
reveal some frustration on the part of members because they feel their
ideas are not being taken into consideration. Its also possible that
suggestions for planning or problem solving never reach the table
because of group dynamics.

1.  **How familiar are members of this group with each other?**

> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team

2.  **Are there clear goals for the group?**

> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team

3.  **Does the group have a clear set of rules to manage interactions?**

> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team

4.  **Describe the typical participation pattern.**

> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team

5.  **How much honesty and openness is there in this group?**

> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team

# Exhibit D

Page 2 of 3

> **6. How good are members at listening, supporting, and encouraging
> each other?**
>
> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team
>
> **7. How do members typically handle differences of opinion?**
>
> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team
>
> **8. How are important decisions usually made?**
>
> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team
>
> **9. Does the group usually end its meetings with a sense of
> achievement and clear action plans?**
>
> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team
>
> **10. How would you describe the atmosphere between members?**
>
> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team
>
> **11. How would you describe the group's meetings?**
>
> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team

# Exhibit D

Page 3 of 3

> **12. Does the group ever stop and evaluate how it's doing, and then
> take action to improve?**
>
> [1 2 3 4\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}
>
> Passing We work We're We are a
>
> Acquaintances together a team high-performance team

A State Internal Review in accordance with RD Instruction 2006-M, and
standardized handbook provided by the Financial Management Division is a
good source for determining whether policies and procedures are in
place, and to what extent group goals are being achieved. Whether
organizational conflict lies within a lack of group leadership or poor
planning processes---i.e., a lack of agendas for meetings, etc.---once
the issues hindering an organization are identified, the door is then
open to improve the way an organization operates. Hopefully, the survey
results will serve to help improve group dynamics and move the
participants to revisit their mission statement or consider whether they
should assess organizational Strengths, Weaknesses and Opportunities
(SWOT), establish or revisit goals, objectives and strategies, and
stimulate discussion about how the organization can or will be
structured for future operations.

# Exhibit E

Page 1 of 1

## 

## Exhibit E. General Facilitation Practices

Encourage group discussions and interactions by following these general
facilitation practices:

-   Be informed \-- know who your audience is and what the issues might
    be prior to the meeting.

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-   Decide how you will approach the group \-- a warm-up exercise should
    help.

-   Clarify the purpose of the meeting for all participants.

-   Share the input members gave during any previous surveys.

-   Consider arranging chairs at the meeting in a horse shoe style so
    that participants don't feel they are being talked at.

-   Listen to what is being said and remain neutral.

-   Ask questions.

-   Paraphrase responses.

-   Synthesize ideas \-- it may be helpful to make suggestions in the
    form of a question.

-   Use appropriate language.

-   Manage digression.

-   Offer clear summaries.

-   Give and receive feedback.

# Exhibit F

Page 1 of 5

## 

## Exhibit F. Principles of Community Development Organization

In the context of community development, an organization normally exists
to provide a particular service to the community. A good example of
organizational development can be found in communities designated as
Empowerment Zones and Enterprise Communities (EZ/EC) during 1995. Groups
within these areas received the EZ/EC designation because they were
successful in meeting the mandate to choose specific areas for
revitalization, and then describe in a holistic fashion how they would
identify and build on assets of the area, while engaging all community
members in creating a plan for revitalizing the area. The strategic
plans developed by each group were required to be holistic in nature and
focus on creating economic opportunity, and promoting sustainable
community development. Groups were encouraged to form themselves as
organizations, reflecting the characteristics and dimensions identified
during their strategic planning process. Although there are several
types of organizations, most EZ/ECs formed themselves as 501(c)(3)s, in
order to benefit from tax deductible donations. The 501(c)(3)
organization is probably the most well known type of nonprofit. Any
incorporated nonprofit requires a board of directors.

The road to economic opportunity and community development starts with
broad participation by all segments of the community. This may include,
among others, the political and governmental leadership, community
groups, health and social service groups, environmental groups,
religious organizations, private and nonprofit sectors, centers of
learning and other community institutions. As with the EZ/ECs,
organizations are encouraged to work with all of the above to create new
partnerships, and work with their new or existing board of directors to
create a viable mission statement or description of how the organization
will operate, based on its overall purpose. Communities are also
encouraged to develop a common vision. The vision is an expression of a
members' image of how the organization should be working when things are
going well. In order to operate as an effective organization,
communities must develop values, strategic goals and strategies to
achieve the overall goals of the organization. All organizations operate
according to overall values or priorities. These values define the
culture of the organization. Organization members often work to achieve
several overall accomplishments or goals as they work toward their
mission. Strategies reflect general approaches to reach their goals. For
existing organizations desiring to improve their performance, a SWOT
analysis (strengths, weaknesses, opportunities, threats) can assist with
identifying areas for development and can be the basis of the overall
strategy for future advancement.

**When Working with Communities**

At a minimum, a start-up not-for-profit organization should include
these basics: a strategic plan, articles of incorporation, budget, and
set of bylaws (Online tools are available at Community Development
Program's EZ/EC website,
[http://www.ezec.gov/toolbox/index.html](../%20http://www.ezec.gov/toolbox/index.html),
and internal website, [http://ocdi.usda.gov](http://ocdi.usda.gov/)).

# Exhibit F

Page 2 of 5

**Action Steps:**

-   Advise organizers to draft a mission statement that describes the
    charitable purpose of the organization.

-   Discuss the advantages of starting a charitable enterprise---see
    info below. You may want to share experiences of our EZ/EC
    communities. Share the success stories before you begin the
    discussion of the annual audit requirements.

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-   Confer with the respective state attorney to determine how many
    board members are required to meet state requirements for non-profit
    status.

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```
-   If established as an informal advisory group, seek board members.

-   Confer with a lawyer to file articles of incorporation for
    tax-exemption.

-   Advise organization to become acquainted with IRS publication #557,
    *Tax Exempt Status for Your Organization*. It explains the
    application procedures and forms required.

-   After reading the publication, confer with a lawyer to determine
    what type of entity classification the organization will use. The
    most frequently filed form is the 501(c)3 tax-exempt organization
    for charitable purposes.

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```
-   Be sure staffs of the organization, or planned staff, and the
    president or executive officer have position descriptions which
    reflect their roles and responsibilities. The lawyer can also assist
    with the review of personnel policies once staff recruiting efforts
    commence.

-   Establish a bank account.

-   Confer with an accountant or other financial expert to help set up
    basic bookkeeping system. Once officers are in place the board
    treasurer will be able to assist in this area.

-   Confer with lawyer regarding insurance and the need for liability or
    other insurance when hiring staff.

-   Draft articles of incorporation. The articles will name the entity,
    its purposes, location, liability, and include the dissolution
    requirements of the corporation.

-   Discuss the possible need for board training. On-line guidance is
    provided at the Community Development Program's websites. Community
    Development Program's desk officers can also guide you through this
    process.

# Exhibit F

Page 3 of 5

-   Draft by-laws. By-Laws need to be approved by the board and will
    specify how the board will operate, procedures for selection,
    responsibilities of board members, membership requirements,
    committee structures, officers, conflicts, bank deposits, and other
    operational guidance.

-   File for incorporation with state. Submit articles, bylaws and
    various reports the state warrants from nonprofits.

-   File for Federal tax-exempt status with IRS.

-   Acquire mail permit that provides for discount on bulk mailings.

-   Get federal employer number. This number is used for a variety of
    purposes and to withhold income and FICA once employees are hired.

**Fiscal Sponsor -- to be or not to be**

## 

Newly formed 501(c)3's that lack experience in money matters may want to
operate for a limited time under fiscal sponsorship. One of the benefits
of using a fiscal sponsor is that new organizations can get started more
quickly. It normally takes up to six months from the time an application
for tax exemption is filed with the IRS to receive notice of tax-exempt
status. Also, the newly developed organization may want to focus their
energy on their charitable activities without having to create and
maintain an infrastructure.

On the flip side, as a sponsored project of an existing 501(c)3, the
sponsor is legally responsible for making sure the new organization
complies with the terms of the grants they have been awarded and how
they operate. This may pose some difficulty if the organization and
sponsor disagree on some issues. Also, some foundations have policies
that do not permit them to make grants through fiscal sponsors.

## 

**Job Descriptions**

Whether hiring staff or establishing a formal board of directors, the
roles of various individuals in an organization should be defined and
stated. Following are recommendations Community Development Program's
desk officers have shared with groups following management control
reviews.

# Exhibit F

Page 4 of 5

## 

**Organization President/Executive Director and Board of Directors
Responsibilities**

The following job descriptions state the various roles of management
staff. It is the responsibility of managers to plan, organize resources
to be sure goals are met, set the direction for the
organization---including organizing new work groups or committees,
establish financial controls (organizational performance management),
and evaluate program processes and outcomes.

**Executive Director**

-   Inspire community, explain how plan/vision will benefit the
    community and share these thoughts with the board.

-   See the board\'s vision and bring vision of community/board
    together.

-   Evaluate and relate to all how well the organization is doing.

-   Make sure annual goals are set and assure strategic plan is
    followed.

-   Direct staff and represent organization in public.

-   Authorize proposals.

-   Guide fundraising.

**Board Members**

-   Be committed to seeking resources.

-   Plan for the future.

-   Evaluate what has happened and set up rules to guide board and staff
    in their work.

-   Conduct regular review of program activities.

-   Act in the best interest of the organization and not on behalf of
    own interests.

-   Authorize proposals.

-   Develop fundraising strategies.

# Exhibit F

Page 5 of 5

**Board Chair**

-   Plan and manage meetings (minutes of last meeting, input from
    various committee chairs to see what they need for next meeting,
    prepare mail, agenda to members prior to meeting).

-   Make sure all have opportunity to speak. Seek recommendation from
    committees/members).

-   Make sure there are agreements and ways to implement agreements.

-   Support members and president or chief executive in achieving the
    organization's mission.

-   Provide leadership to the board of directors who set policy.

-   Appoint the chairpersons of committees, in consultation with board.

-   Serve ex officio as a member of committees and attends their
    meetings when invited.

-   Help guide board actions with respect to organizational priorities
    and governance.

-   Monitor financial planning and financial reports.

-   Promote fundraisers.

## 

**Board Treasurer**

-   Administer and manages finances of the organization.

-   Is a member of the board.

-   Provide annual budget to the board for members' approval.

-   Ensure development and board review of financial procedures and
    policies.

# Exhibit G

Page 1 of 1

## 

## Exhibit G. Leadership Ability Assessment

Leadership can be divided into 15 unique sections. In life, these
categories flow together, building off each other. The categories are as
follows:

> **1. Diligence** - How hard does a person work?
>
> **2. Persistence** -- How long do people work to achieve their goal?
>
> **3. Understanding** -- Do they really listen to others' problems?
>
> **4. Confrontation** - Do they have problems confronting adversaries?
>
> **5. Public Speaking** - Can they speak in front of crowds and talk to
> them?
>
> **6. Problem Solving** - Are they capable of finding appropriate
> solutions?
>
> **7. Role Model** - Do people look up to them and their values?
>
> **8. Disposition** - Are they easy to get along with? Friendly? Open?
>
> **9. Flexibility** -- Will they change their schedule/view according
> to group majority?
>
> **10. Ambition** - Do they ever settle for mediocrity?
>
> **11. Organization** - Can they keep a schedule for themselves and
> others?
>
> **12. Punctuality** - Are they on time for appointments?
>
> **13. Loyalty** - Do they drop out of programs or change votes?
>
> **14. Street Smarts** - Can they hold their own voice in the real
> world?
>
> **15. Versatility** - Are they a jack of all trades or a master of
> none?

# Exhibit H

Page 1 of 1

## 

## Exhibit H. Community Development Partners/Training Providers

The National Development Council

Council for Affordable and Rural Housing

Community Development Society

USDA Cooperative Research Education Extension Service *(CREES)*

North Central Regional Center for Rural Development

Housing Assistance Council, *Washington D.C*.

International Economic Development Council

Advanced Systems Technology Corporation, *Maryland*

National Rural Development Partnership, *Washington, D.C*.

Rural Development Councils, Nationwide

National Association of Towns and Townships

National Community Reinvestment Coalition, *Washington, D.C.*

National Centers of Excellence, N*ationwide*

The Heartland Institute, *Nebraska*

Community and Rural Development Institute (CaRDI), *Cornell University*

National Rural Water Association

National Association of Regional Councils

Neighborhood Reinvestment Corporation

Rural Community Assistance Corporation, *Western States*

# Exhibit I

Page 1 of 4

## 

## 

# Downloadable Resources for Community Development

**[Documents Made Available by Office of Community Development, Rural
Development, USDA]{.underline}**

-   [**A Guide to Strategic Planning for Rural
    Communities**](http://www.ezec.gov/About/strategic.pdf) (pdf file,
    49 K) \-- http://www.ezec.gov/About/strategic.pdf

-   **[Community
    Participation](http://www.ezec.gov/Pubs/commparticrept.pdf): How
    People Power Brings Sustainable Benefits to Communities**. (pdf
    file, 162 K) \-- http://www.ezec.gov/Pubs/commparticrept.pdf

-   **Money Drain in Your Community** OCD TechNote
    [(TN-6)](http://www.rurdev.usda.gov/ocd/tn/tn6.pdf)
    http://www.rurdev.usda.gov/ocd/tn/tn6.pdf

-   **Building and Maintaining a Partnership** OCD TechNote
    [(TN-7)](http://www.rurdev.usda.gov/ocd/tn/tn7.pdf)
    http://www.rurdev.usda.gov/ocd/tn/tn7.pdf

-   **Community Planning** OCD TechNote
    [(TN-8)](http://www.rurdev.usda.gov/ocd/tn/tn8.pdf)
    http://www.rurdev.usda.gov/ocd/tn/tn8.pdf

-   **How to Organize Community Meetings** OCD TechNote
    [(TN-9)](http://www.rurdev.usda.gov/ocd/tn/tn9.pdf)
    http://www.rurdev.usda.gov/ocd/tn/tn9.pdf

-   **Dispute Resolution** (TN-1)
    http://ocdweb.sc.egov.usda.gov/technotes/tn1.pdf

-   **Development Strategies for Remote or Declining Rural Communities**
    OCD TechNote [(TN-17)](http://www.rurdev.usda.gov/ocd/tn/tn17.pdf)
    http://www.rurdev.usda.gov/ocd/tn/tn17.pdf

-   **Facilitation: What It Is and When to Use It** (TN-4)
    http://ocdweb.sc.egov.usda.gov/technotes/tn4.pdf

-   **Economic Development: Principles for High-Performance Strategies**
    OCD TechNote [(TN-18)](http://www.rurdev.usda.gov/ocd/tn/tn18.pdf)
    <http://www.rurdev.usda.gov/ocd/tn/tn18.pdf>

-   [**A Guide to Funding
    Sources**](http://www.nal.usda.gov/ric/ricpubs/fundguide.pdf)\--A
    publication compiled by USDA\'s Rural Information Center that
    includes information from both government and private sources on
    funding opportunities. (pdf, 134 K) \--
    http://www.nal.usda.gov/ric/ricpubs/fundguide.pdf

-   **Applying for 501(c)(3) Tax-free Status** OCD TechNote
    [(TN-16)](http://www.rurdev.usda.gov/ocd/tn/tn16.pdf)
    http://www.rurdev.usda.gov/ocd/tn/tn16.pdf

# 

# Exhibit I

Page 2 of 4

**[Statistical Data and Other Sources]{.underline}**

-   **State Fact Sheets,** Economic Research Service (ERS) provides
    information on population, employment, income, farm characteristics,
    and farm financial indicators for each state in the United States.
    http://www.ers.usda.gov/StateFacts/WV.HTM

-   **Profiles of America,** Economic Research Service (ERS) provides
    county-level data, including maps and tables, on population,
    education, employment, income, and the business sector.
    http://www.ers.usda.gov/Data/ProfilesOfAmerica/

-   **Community and Economic Development, University of Illinois,**
    Resources on community assessments, planning and leadership.
    http://communitydevelopment.uiuc.edu/webworks/files/search.php

-   **Appalachian Regional Commission Online Resource Center,** Includes
    information on strategic planning, best practices in several sectors
    including Water and Wastewater, Business Development, etc.
    http://www.arc.gov/index.do?nodeId=48

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```
-   **Small Business Education**, University of Maine-Cooperative
    Extension: Virutal Library of materials related to small businesses.
    http://www.umext.maine.edu/hbbsite/html/index.html

-   **Business Retention and Expansion Visitation Manual**, the
    Northeast Regional Center for Rural Development (NE-72):
    http://www.cas.nercrd.psu.edu/Publications/index.htm

**[Funding Possibilities for Rural America]{.underline}**

-   **Local Community Foundations**
    http://www.cof.org/Locator/index.cfm?menuContainerID=34&crumb=2

```{=html}
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```
-   **Building Better Rural Places: Federal Programs for Sustainable
    Agriculture, Forestry Conservation and Community Development.** A
    HUGE directory of federal programs for sustainable agriculture,
    forestry, conservation and community development. It includes a
    description of each program, eligibility and contact information. It
    was produced by the U.S. Department of Agriculture in August
    of 2004. (Please note the file size requires some time to download)
    <http://attra.ncat.org/guide/resource.pdf>

-   **Guide to Funding Resources:** at the Rural Information Center at
    the National Agricultural Library provides an overview of the
    process for applying for federal funding and funding from private
    sources. It lists a variety of resources and publications related to
    funding and grantwriting.
    http://www.nal.usda.gov/ric/ricpubs/funding/fundguide.html

# Exhibit I

Page 3 of 4

-   **[Promoting Tourism in Rural
    America](http://www.nal.usda.gov/ric/ricpubs/tourism.html):** Covers
    the major issues in rural tourism including agri-tourism,
    cultural/heritage tourism, ecotourism, planning, marketing, economic
    impact and more. It provides web links to more than fifty full-text
    "how to" information guides, manuals and handbooks for assisting
    local officials, communities, and citizens involved in tourism
    development. http://www.nal.usda.gov/ric/ricpubs/tourism.html.

-   **Rural Housing and Economic Development Gateway:** developed by the
    U.S. Department of Housing and Urban Development and the Housing
    Assistance Council, connects rural organizations with information,
    technical assistance, training, and investment capital to help them
    develop, rebuild, and preserve affordable housing, local economies,
    and essential infrastructure. <http://www.ruralhome.org/gateway/>.

-   **Starting a Child Care Center:** Developed by HHS, Federal Child
    Care Bureau, is an annotated list of resources for starting a child
    care center that include federal, state, community, and private
    agencies, and national organizations. Also listed are publications
    and publishers. <http://nccic.org/poptopics/starting.html>.

-   **Information for Seeking Foundation & Corporate Grants:** All
    though geared towards Michigan, this complimentary publication
    provides information, useful tips and techniques for searching,
    applying and obtaining grants. This publication describes the
    different types of grantmakers---independent, community and company
    sponsored.

<http://www.cmif.org/Documents/InfoforSeeking13th.pdf>.

-   **Smart Communities Network:  Creating Energy Smart Communities:**
    Explore funding opportunities researched by the Department of Energy
    covering the topics of energy education and stream restoration to
    solar panels and efficient vehicles.  Postings are updated regularly
    and include some non-energy programs. 
    <http://www.sustainable.doe.gov/management/financl.shtml>

 

-   **A Guide to Federal Housing and Community Development Programs for
    Small Towns and Rural Areas:** Tool compiles USDA, HUD, federal
    homeless assistance programs, and important private investment
    programs for low-income rural populations. Each listing includes the
    program's purpose, eligibility criteria, terms, and contacts. 
    <http://www.ruralhome.org/pubs/guides/fedprograms/guide.pdf>

# Exhibit I

Page 4 of 4

**[Links to Grant Seeking, Grant Writing, etc.]{.underline}**

-   **The Catalog of Domestic Federal Assistance: Developing and Writing
    Grant Proposals:**

> http://12.46.245.173/pls/portal30/CATALOG.GRANT_PROPOSAL_DYN.show

-   **The Foundation Center: Proposal Writing Short Course**:
    http://fdncenter.org/learn/shortcourse/prop1.html

-   **Guide to proposal planning and writing***:*
    http://www.wm.edu/grants/PROP/miner.pdf

## The Grant Seeker's Guide to the Galaxy: A compendium of funding resources from the Community Development Program in USDA. This guide contains the presentations and handouts created over the years from the Office of Community Development and its partners and includes information on the grant seeking process, building capacity and sustainability, financial management, and grant-seeking tools. 

> http://www.ezec.gov/Fundseekers%20Guide%20to%20the%20Galaxy/TheGrantSeeker.htm

-   **NOFA Site (OCD):** Summary of links to Federal Grants potentially
    relevant to rural communities. http://ocd1.usda.gov/nofa.htm

# 

# Exhibit J

Page 1 of 1

## 

## Exhibit J. Small Business Administration 

The Small Business Administration (SBA) can be utilized as a resource to
assist small business development. The SBA provides small business
training and counseling through a variety of programs and resource
partners, located strategically around the country.

[Small Business Development Centers (SBDC)]{.underline}\
This training resource is a cooperative effort of the private sector,
the educational community and federal, state and local governments. It
is SBA\'s largest resource partner and an initiative that enhances
economic development by providing small businesses with management and
technical assistance. There are more than 1,100 SBDC lead and service
centers located around the country:

[SCORE]{.underline}\
The SCORE Association (Service Corps of Retired Executives) is a
resource partner of the SBA dedicated to entrepreneur education and the
formation, growth and success of small businesses nationwide. There are
more than 10,500 SCORE volunteers in 389 chapter locations who assist
small businesses with business counseling and training. SCORE also
operates an active online counseling initiative.\
\
[Women's Business Centers (WBCs)]{.underline}\
Women\'s Business Centers represent a national network of more than 80
educational centers designed to assist women start and grow small
businesses. WBCs operate with the mission to level the playing field for
women entrepreneurs, who still face unique obstacles in the world of
business.\
[\
Business Information Centers (BICs)]{.underline}\
Business Information Centers (BICs) provide the latest in
high-technology hardware, software and telecommunications to assist
small businesses. There are 85 such state-of-the-art centers located
around the country, dedicated to providing the tools and assistance
small businesses need to succeed.

[SBA District Offices]{.underline}\
In addition to its resource partners, the SBA operates full service
district offices in every state of the country. Listings are located in
local area yellow pages.

# Exhibit K

Page 1 of 2

## Exhibit K. Acronyms and Definitions

BMS- Benchmark Management System

CAA-Community Action Agency

CAP -- Community Action Program

CC- Champion Community

CD- Community Development

CEP-Community Empowerment Program

EZ- Empowerment Zone

EC- Enterprise Community

FMD- Financial Management Division, USDA

IRP-Intermediary Relending Program Collaboration

MAP -- Mapping Analysis Program

MCR- Management Control Review

NCE- National Center of Excellence

NRDP- National Rural Development Partnership

RBOG-Rural Business Opportunity Grant

RBEG-Rural Business and Industry Grant

RCAP- Rural Community Assistance Program

RD- Rural Development

RDLG-Rural Economic Development Loans and Grants

REAP- Rural Economic Area Partnership

SIR- State Internal Review

SP- Strategic Plan

SRDC- State Rural Development Council

SWOT- Strengths, Weaknesses, Opportunities, Threats Analyses

USDA- United States Department of Agriculture

SSBG- Social Services Block Grant

501(c)(3)-Federally Recognized Tax-Exempt Corporation which exists to
provide a particular service to the community

Asset Mapping---finding and laying out areas within a community which
have the potential to help the community achieve its goals or be the
basis of further development.

Audit---an examination of financial accounts.

Best Practices---a note-worthy event in Rural Development that improves
the quality of life and should be shared with others.

CAP---see reference under community development finance.

Collaboration---working together, bringing together thoughts and ideas.

# Exhibit K

Page 2 of 2

Community Development Programs---formally known as the Office of
Community Development.

Earmarked---money that has been set aside for a specific purpose.

Entrepreneur---someone or some group that assumes responsibility for a
business venture.

Human Capital---the skills that a person can acquire and build on while
in a certain position or serving a specific role.

Indian Tribes---a group of indigenous Americans who live in a common
community.

Institutions---an organization that comes together for a common cause,
i.e. education.

Internet---a world-wide information super highway.

Intranet---information network built for USDA agency internal use.

Lead Entity---a person or group who takes control of a situation or
event.

Leadership---a personal quality which allows someone to take control or
direct a situation.

Links---connections, often used as specifically technical connections or
resources.

Marketing---selling a product or idea, to make something available for
buying.

> Organizational Development---fostering organizations so that they can
> become a functioning actor in a community.

Outcome, Output---the result of an action.

Outreach---the act of providing a service beyond a person or group's
normal limits.

Partnerships---groups or people working together.

Public Participation, Public Involvement---citizens or groups becoming
active in the functions of a community.

Resource Teams---networks that provide the necessary material or
information.

Set-Aside---USDA discretionary funds.

Stakeholder---interested party or someone who is part of an enterprise.

Supported Communities---Communities (EZ/EC, CC, RCAP, REAP) that are
given financial or technical assistance over and above that given to
other communities, by reason of extreme conditions.

Targeting---specifically working with one community or group.

Underserved, Under-represented---populations that are typically not
being given fair treatment in service or representation.

Website---a page on the World Wide Web which provides online
information.

[^1]: (United Nations 1963)

[^2]: [\"Community Empowerment: A New Approach for Rural
    Development,\"](../rdp599.pdf) A summary of the EZ/EC program from
    *Rural Development Perspectives*, May 1999. J. Norman Reid

[^3]: While the action steps suggest a process for this topic, the
    actions listed may or may not be required in a particular situation.
    On-the-ground knowledge and experience, coupled with the needs,
    desires and capabilities of the customer, should be used to adapt
    these suggested action steps to the community's specific situation.

[^4]: See Footnote 3 (p.11).

    5 See Footnote 3 (p.11).

[^5]:

[^6]: See Footnote 3 (p.11).

[^7]: See Footnote 3 (p.11).

[^8]: See Footnote 3 (p.11).

[^9]: See Footnote 3 (p.11).

[^10]: See Footnote 3 (p.11).

[^11]: See Footnote 3 (p.11).

[^12]: See Footnote 3 (p.11).

[^13]: See Footnote 3 (p.11).

[^14]: See Footnote 3 (p.11).

[^15]: See Footnote 3 (p.11).

[^16]: See Footnote 3 (p. 11)

[^17]: See Footnote 3 (p. 11)

[^18]: See Footnote 3 (p.11).

[^19]: These action steps are derived from regulatory or program
    requirements and most, if not all, are necessary for fully assisting
    supported communities.

[^20]: See Footnote 19 (p.25).

[^21]: See Footnote 19 (p.25).

[^22]: See Footnote 19 (p.25).

[^23]: See Footnote 19 (p.25).