Thank you.
The designated organization could be an association, as in the case of CBAA. It could be a separate and arm's-length incorporated organization. The act isn't specific about what shape the designated organization would take, but there are a number of options, suffice to say.
The organization could be for a prescribed segment of the aviation community under their oversight. It could be that for a certain segment of the standards or regulatory framework, they would be able to establish standards of their own for that segment of the aviation community.