The Community Diversion Incentive (CDI) program was created in 1980 to address inmate overcrowding and growing correctional expenditures. This evaluation was conducted in the fourth year of the project. CDI is designed for offenders who may require less than institutional custody but more supervision and support than traditional probation supervision. To be eligible for CDI, an offender must be initially sentenced to incarceration. The evaluation involved a statistical comparison of offenders from three sentence groups: those receiving probation, those receiving incarceration, and those being diverted into the CDI program. Groups were compared on the basis of selected offense and offender characteristics. The comparison was intended to determine if these three groups consistently differed on the basis of these key sentencing criteria. Findings indicate that at least 46 percent of the divertees (out of a sample of 56) would have been incarcerated if the program had not been available. The usefulness of a statistical technique for evaluating implementation and providing concrete results to policymakers is discussed. 3 tables, 2 figures, and 12 references.