This paper examined the role of budget in foreign charities/ NGOs in Ethiopia. In doing so arnresearch question raised was what role does budget play in foreign charities /NGOs inrnEthiopia. Accordingly, Budget roles were identified and include planning, communication,rncoordination, control, evaluation and motivation . In order to answer the research question,rn33 relevant questions were developed and distributed to selected participants in the survey.rnEmployees from 15 conveniently selected foreign charities / NGOs in Ethiopia werernparticipated in the survey and 40 dully filled responses were received for analysis. The resultrnfrom the analysis indicated that budget has a role in planning, communication, coordination,rncontrol and evaluation based on majority responses. However, the analysis for the role ofrnbudget for motivation has shown a contradictory result. Respondents agreed budget has arnrole in motivation in their response in the detailed questions but opposed on their response onrnthe single suggestion where it says budget is used for motivation in their respectivernorganizations.rnKey words :rnRole of budget, planning, communication, coordination, control, evaluation,rnmotivation, Ethiopia, Foreign charities, NGOs