This document examines emerging issues and opportunities for community-based organization (CBO) involvement in welfare reform. The document begins with a brief section of background information on past CBO involvement in helping families move from welfare to work. The next section answers policy questions pertaining to the following issues: (1) factors and specific legislation that have expanded opportunities for CBO involvement in welfare reform; (2) ways CBOs are serving low-income families who have left or are trying to leave welfare; (3) barriers CBOs confront in getting involved with welfare reform; (4) promising approaches CBOs can consider to overcome the barriers (including partnering with other organizations, enhancing data collection and reporting systems, and identifying sustainable funding sources); (5) opportunities for state and local policymakers to reduce barriers to CBO participation in welfare reform; and (6) ways CBOs can be involved as welfare reform evolves. Key findings of research on CBO involvement in welfare reform are presented. An innovative program serving 22 cities across the United States is profiled along with innovative programs in the following states: California; Louisiana, Pennsylvania; Nebraska; New York; Ohio; and Texas. Concluding the document are the World Wide Web addresses of nine resource contacts and sources for nine publications. (MN)