This report discusses innovative uses of information technology by community based organizations, examining how to develop a comprehensive policy agenda for bridging the digital divide. It begins by presenting background information on the digital divide as context for understanding the organizational divide. Next, it discusses challenges facing the use of technology by the nonprofit sector and available resources to build information technology capacity. It focuses on promising practices that use relevant content and applications, describing three avenues for building technology capacity (technical assistance providers, community technology centers, and entrepreneurial, community-driven efforts). The paper examines six activities that community based organizations support through the use of information technologies: advocacy/online organizing, community information clearinghouse, networking and online communities, innovations in service delivery, interactive database development, and community mapping). Finally, the paper presents a framework for developing a comprehensive policy approach to bridging the digital divide. An appendix offers technology technical assistance providers and case study examples. (Contains 17 references.) (SM)