In 2005, the Carnegie Foundation for the Advancement of Teaching (CFAT) stirred the higher education world with the announcement of a new classification for institutions that engage with community. The classification, community engagement, is the first in a set of planned classification schemes resulting from the foundation's reexamination of the traditional Carnegie classification system. The new classifications are intended to provide flexibility, closer match of data with purpose, and a multidimensional approach for better representing institutional identity. The first of those new schemes, community engagement, has prompted a flurry of inquiry, self-assessment, documentation, and development of engagement practices as educators in colleges and universities strive to qualify for the classification. The community engagement classification affirms that a university or college has institutionalized engagement with community in its identity, culture, and commitments. The classification further affirms that the practices of community engagement have been developed to the extent that they are aligned with the institutional identity and an integral component of the institutional culture. This classification is elective: it relies on voluntary participation by an institution. In contrast to the traditional Carnegie classification, which uses national data, the community engagement classification uses documentation provided by each institution. This article examines Carnegie's new community engagement classification and focuses on the challenges--institutional recording and assessment systems and approaches, revision of promotion and tenure policies and practices, and communication and collaboration with community--because they are applicable to most institutions and have significant potential for improving community engagement in general.