This paper seeks to identify the factors which are responsible for successful management of natural resources when communities are given opportunities to manage those resources. Applying the social capital framework, it analyzes empirical data from the well known case of Kalahan Educational Foundation, the Philippines. The study confirms previous findings, which have emphasized the high level of cohesion and traditional norms among a homogeneous community of indigenous peoples (bonding social capital) as a success factor. This study further identifies that for effective management of collective action, mobilization of bridging and linking social capital are equally important as they do not only help mobilize external resources but, at times, also promote bonding social capital.