Changes in the labor market and rising expectations of employers, government, and job seekers are putting enormous pressure on non-profit, community based organizations (CBOs) in the field of work force development. Providing intensive services for hard-to-serve populations costs more than serving clients who are more "job ready," yet increased competition for government contracts is driving down prices. CBOs may have many different looks but they face remarkably similar problems: many simply do not know how to meet the new demands of the labor market for disadvantaged job seekers, and many have limited capacity to do what is needed to become more effective providers in the labor market. To respond to the challenges, CBOs can commit to organizational change; collaborate to learn and gain strength in the marketplace; adopt a "dual customer" approach; find out what employers are looking for--and respond to it; learn what it takes to be an effective work force provider; develop strong ties with human services providers; develop the organization's "cultural competency;" start using data to improve the organization's performance; and initiate dialogue with government officials and other potential partners about ways to help CBOs build capacity to improve their performance. (YLB)