Given a directed social graph and a set of past informa- tion cascades observed over the graph, we study the novel problem of detecting modules of the graph (communities of nodes), that also explain the cascades. Our key observation is that both information propagation and social ties forma- tion in a social network can be explained according to the same latent factor, which ultimately guide a user behavior within the network. Based on this observation, we propose the Community-Cascade Network (CCN) model, a stochas- tic mixture membership generative model that can fit, at the same time, the social graph and the observed set of cas- cades. Our model produces overlapping communities and for each node, its level of authority and passive interest in each community it belongs. For learning the parameters of the CCN model, we devise a Generalized Expectation Maximization procedure. We then apply our model to real-world social networks and in- formation cascades: the results witness the validity of the proposed CCN model, providing useful insights on its signif- icance for analyzing social behavior.