The federal government often works through nonprofit intermediaries to reach and empower communities in the United States. One increasingly popular policy strategy is to offer grant funding to intermediary organizations in an effort to strengthen communities. Funded intermediaries are tasked with building the capacity of faith-based and community organizations at the local level, but the policy theory that informs these programs does not specify how these capacity-building efforts will lead to stronger communities. Missing is a middle-range implementation theory that links inputs to community-level changes through the actions of an intermediary. Derived from empirical case study evidence using process-tracing analysis, the theory of the community-integrated intermediary posited in this article helps fill that gap.