Laxmikantham, P. (PhD)Ahmed, Yesuf2018-07-032023-11-082018-07-032023-11-082015-05http://etd.aau.edu.et/handle/123456789/5680Budgeting is about making plans for the future, implementing those plans and monitoring activities to see whether they conform to the plan. The purpose of this study is to evaluate the effect of budgeting and budget monitoring practice in NGOs operating in Ethiopia. The study focused on budget development, monitoring and implementation activities undertaken during the project cycle periods. To achieve the objectives of the thesis, convenience sampling method was used and selected twenty charity organizations. Managers of the sample organizations were communicated to identify the key staffs that are responsible in the budgeting process according to the structure of each organization. 81 staffs are taken as respondents from Program, Finance and support service departments of the organizations out of 102 staffs who were recommended by the organizations managers. A self-administered questionnaire was distributed to respondents. Secondary data was also collected from budget performance reports, financial statements and manuals. As the findings show, the overall budgeting system in the sample organizations missed the participation of concerned staffs. Participation of staffs in budget development helps to achieve the purposes of budget such as coordination, communication and motivation in the process of achieving the expected performance level. So it is recommended that the charities should participate concerned staffs in budget development, budget monitoring and implementation. Key words: Budget preparation, budget monitoring and Budget implementationen-USBudget preparationBudget monitoring and budget implementationThesis