The first part of a two phase project, this was an evaluation of characteristics of community action agencies (CAAs) which make them more or less effective in influencing other institutions to be more responseive to the needs and demands of the poor. CAA board members, representatives of the poor and other segments of the community, and administrators were interviewed in 50 cities of over 50,000 population to gather data on CAA activities, goals, and organizations, and neighborhood and city characteristics expected to be important factors in change. Emphasis was placed on how CAAs with differing goal orientations influence institutional change, processes of change in the public school and private welfare sectors, community organization as related to employment patterns and practices, and changes within (or related to) neighborhood political structures. Finally, evidence of diffusion of change was examined, ranging from simple advocacy of an innovation to the actual performance of a new or altered institutional function. (The document includes 27 references and 57 tables and figures.) (LY)