We analyze the effectiveness of the Programa Hondureno de Educacion Comunitaria (PROHECO) community school program in rural Honduras. The data include standardized tests and extensive information on school, teacher, classroom, and community features for 120 rural schools drawn from 15 states. Using academic achievement decompositions we find that PROHECO schools do a better job of maximizing teacher effort and involving parents in the school, both of which translate into higher levels of achievement. But these efficiency advantages are offset (to some degree) by lower levels of teacher experience, training, parental education, as well as a reliance on smaller class sizes. The results help extend the community school and school based management (SBM) literatures by identifying plausible mechanisms in the chain linking increased community involvement with better student outcomes, while also highlighting the importance of local capacity.