School Management Committee (SMC) has changed management of basic schools in many countries. This study has a goal to understand how SMCs of two community-based schools operate in an urban and a rural context of Ghana. The study used a multiple-embedded case study design in a qualitative approach to address how the SMCs function and how the parents and communities participate in these two schools through the SMCs. A semi-structured interview was used to gather data from members of the two SMCs. The study investigated five areas of functions of the SMCs and evaluated some of their practices based on stipulated directives of the GES. It also tried to understand how the parents and community in the two schools participate through the SMCs. Using an inductive analytical approach, a conceptual model was developed to discuss and interpret the findings. The study shows how contextual differences of two schools can influence the functions of their SMCs. First, it indicates that the SMCs have four categories of roles that classify their roles as support in the management of the Schools. But, they are not effective in all the four category of roles. Second, it highlights the importance of involving parents in decision making to raise funds but the outcome of this practice is different to the two SMCs. Third, it reveals that school-community relationship can be positive or poor depending on how parents are involved in schools and the kind of communication with community leadership. Also, the flow of information between the Education Authority and the SMCs suggests that there are some barriers but these barriers are differently perceived and generates different reactions from each of the two SMCs and their respective community leaderships. Further, the two SMCs have challenges that affect their functions. The common and major ones to both SMCs are insufficient finance, inadequate capacity, lack of rewards for the work of SMC and worrisome combination of personal work to that of the SMC. Moreover, the nature of participation points that parents more than communities participate in the schools. But the extents of parents participation vary between the two schools. In conclusion, the study indicates there are significant differences in how the two SMCs operate their schools given their different backgrounds. The study recommends empowerments for both SMCs to enable them mobilize well their communities and resources to help the school. It suggests further studies about the effects of financial contributions on parents' participation and access to education in these two schools.