May the LEA disclose personally identifiable information (PII) from education records to a community-based organization under the audit or evaluation exception for the purpose of the community-based organization evaluating its own program?

Generally, no.  The audit or evaluation by an community-based organization of its own program (i.e., to determine whether or not the organization’s program is effective) in most cases would not be permitted under the audit or evaluation exception because the audit or evaluation exception only permits the audit or evaluation of federal- or state-supported education programs, which FERPA defines as any program principally engaged in the provision of education, including, but not limited to, early childhood education, elementary and secondary education, postsecondary education, special education, job training, career and technical education, and adult education, and any program that is administered by an educational agency or institution.