Building beneficiary capacity is a must for the success of European Union (EU) Cohesion Policy investment. This report reveals the importance of a strategic, proactive and tailored approach to beneficiary capacity building. It highlights that beneficiary capacity building involves more than technical assistance and improving administrative compliance. It also requires systematically enhancing the strategic and thematic skills of beneficiaries to sustainably advance Cohesion Policy objectives. Managing authorities are central to this effort. To help managing authorities develop a dynamic and sustainable partnership with beneficiaries, this report introduces a structured and practical framework centred on four pillars: people and organisation, beneficiary capacity analysis, technical support and communication, and engagement with external actors. The contents of the report and the proposed framework can help managing authorities across the EU enhance their beneficiary capacity building activities, while also providing insights for other public investment programmes, their fund managers and fund recipients.