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Community based targeting mechanism has been championed as the most effective and efficient way of reaching the most vulnerable. However, very little is known on how community based targeting mechanism actually works. Using the Agriculture Input Subsidy programme as a case study, the article attempts to explore whether community based targeting lives to its billing of enhancing social capital. The purpose of the study was to examine community perceptions and experiences about community based targeting approach and how it affects social relations and collective actions in the community. The results demonstrate that while communities have the knowledge and capacity to target the most vulnerable, the approach is largely a top down process. The choice on whether to target or not is a delicate balance of social, economic and political factors. Communities largely participate to fulfil or comply with official requirements so that they can cash in from the benefits. However, given a choice communities would largely share resources equally to prevent social costs.