The purpose of this study was to assess the practice and challenges of Organizational CapacityrnDevelopment at Hope University College. In order to achieve this, descriptive survey methodrnwas applied, because this method can describes the current situation of the UC more clearly andrnprecisely than other survey methods. OCD helps organizations as a tool to perform their visionrnand mission .HUC was one of HEIs working in developing educational system of the country andrntraining young generation to be productive citizen. In order to win the desired strategies and tornbe competent in the market the college planned to reorganize its working system alongthernprinciples of Organizational Capacity Development.OCD used as a development instruments tornenhance the activities of the college to provide quality education. This research was designed torninvestigate what practices and challenges were faced the organization during thernimplementation of capacity development as a means of development. The researcher organizedrnbasic question in order to see the practices and the challenges. These basic research questionsrnwere, what are the current organizational practices of organizational capacity in HopernUniversity College?,what are the challenges for enhancing the effectiveness of organizationalrncapacity development at Hope University College?, how Hope University College managernperformance assessment and evaluation in order to identify progress and the challenges duringrnpast strategic plans? Andwhat are the prospective strategies for enhancing the effectiveness ofrnthe Organizational Capacity Development in the Hope University College?. Thirty Eightrnrespondents were selected from 79 employees using purposive sampling technique. Asrnconcerning data source both primary and secondary sources were implemented, the primaryrndata collected using semi-structured interview and secondary data were gathered throughrndocument analysis. Based on the data from the respondents the UC has strong practices relatedrnleadership,developmentof infrastructures,management,human resource management, internalrnand external relationship meanwhile the result of the research indicates that there are gaprnrelated to resource of finance and finance management, participation of employees onrnmanagerial activities and training and development. Based on final result of the researchthernresearcher concluded thatlack of human resource management experience, absence of trainingrnand development,disorganized management of resource, low participation of employees atrnmanagerial activities, absence of networking relationship with other private educationalrninstitutions, increasing of turnoverand unorganized performance evaluation were basic gapsrnidentified by the study.And finally the researcher recommend the following organizing strongrnhuman resource management, recruiting energetic staffs, participation of staffs in managerialrnactivities should be increase, internal fund resource should be assessed, both physical andrntechnical infrastructure should be organized in order maintain for further organizationalrncapacity development.