Taiwan is aging rapidly. It causes an important governance issue in the society. In the past 20 years, Taiwanese Government has proposed many social welfare schemes for the elderly, and “Aging in Place” is the main goal of those schemes. In 2009, the ‘long-term care insurance policy’ has been suggested by the Executive Yuan. This policy recommends that the social insurance system should include the scheme of long term care for the elderly. That can develop a more complete elderly social welfare system. However, by examining those schemes for ‘Aging in Place’, the common problem of the schemes is that they do not establish governance networks. Because the ‘Aging in Place’ is the main goal of the recent elderly social welfare policy, local community organizations are expected to become the center of governance networks. However, nowadays we only find that government and nonprofit organizations which all deliver services for the elderly emphasize the concept of ‘Aging in Place’ on the community level, but they do not build up collaborative relationship. Therefore, there exists huge gap between the policy and the practice. Building governance network becomes a very important issue for the elderly welfare provision. ‘Using old persons’ capability’ is an innovative governance value for the practice of ‘Aging in Place’. In this paper, we study ‘Bodhi Chang-Ching Village’ which is a nonprofit and community organization and was established after 921 earthquake in Pu-Li. Bodhi Chang-Ching Village believes old persons still have a lot of capabilities for use. Healthy old person can look after fragile old persons. In the case study of Bodhi Chang-Ching Village, therefore, we find that the participation of community organization in the social welfare provision for the elderly should be the main part of the practice of ‘Aging in Place’, and building the governance networks of community organizations is also very important. In addition, community organization can run social enterprise as financial resource to support its varied service provision. That could make the idea of “Aging in Place’ into real sustainable practice.