The concept of ‘capacity building’ is explored, through illustration and critique of the concept's development in the international, national and local community literature. Theoretical strands where the concept belongs partially include community development theory, agency theory and stewardship theory. The concept is examined in the context of new public management thinking, and its discovery by professionals to enhance their community roles is highlighted. Findings from micro-level case study research among local community organizations are reported, suggesting organizational scepticism about its meaning and outcomes, and producing a preliminary typology of organizations' responses to the concept. The article concludes that the concept appears theoretically homeless. It emphasizes the need for clarification of the concept's multiple meanings, so that the chances of useful evaluation of publicly funded capacity building programmes may be enhanced.