This research attempts to examine the effect of fund management practices on project success/performance in International Non-Governmental Organizations (INGOs) in Addis Ababa and the challenges of fund management in INGOS. Three dimensions of fund management practices were considered i) Budget and planning, ii) Financial monitoring and reporting and iii) Internal control systems. A self-administered survey was used to collect responses from 200 International NGOs in Addis Ababa. Of 200, 54 useful responses were received and then statistically analyzed using SPSS software. A descriptive, correlational and inferential design approaches were used to analyze the relationship between fund management practices and project success/performance. In addition, the impact of fund management practices on performance analyzed using linear regression analysis. The result shows that the NGOs have strong, i) planning and budgeting, ii) financial monitoring and reporting and iii) internal control system in their organization. Funds management practices correlates with project success moderately with positive and statistically significant coefficient (r = 0.512, p