In Ethiopia, there is a massive inflow of funding through unilateral and bilateral cooperation, majority of which is in the form of aid. For the past consecutive years, this inflow even exceeds the export earnings from coffee. Hence, these funding aimed at supporting projects and Programmes through non-government organizations like World vision Ethiopia, with the primary aim of the betterment of human life. However, how the financed projects are identified, selected and design remains to be vague. On the other hand, various studies shows that the success ofrnixrnsuch projects are highly correlated with the Identification and design process it has undergoes through. This study aims to assess how projects are identified, rated and designed in Non-governmental organizations with specific instance of world vision Ethiopia. As a key assessment parameter, the study investigates the primary sources of project ideas, the role of key stakeholders, how project Problems are analyzed and Objective developed and the practice of setting project framework (design). The study employed a descriptive research design and a qualitative research approach, with semi-structured interviews serving as the primary data source and analysis of existing organization documents as the secondary source of data. The data was gathered using a semi-structured interview technique and Purposive sampling of key personnelâ€™s. 15 personnelâ€™s from three department dedicated for project design were interviewed. For clarification purpose, analysis was made based on Funding sources- Sponsorship and Grants. To analyses the data, tabulation and checklist of practice against industry standard is made. The finding of the study showed that majority of Grant funded project ideas are originally emanates from Donors. Moreover, the organization showed to have a good practice of engaging Stakeholders in project identification & design for both funding sources. Even more stakeholders do have a significant role to the extent of co leading project design for sponsorship-funded projects. In other finding, the organization does not deploy any project appraisal technique to compare alternative project ideas apart from the practice of undertaking cost per beneficiary analysis as a comparison tool. In other finding, the organization do make a comprehensive problem analysis that comply with the industry standard, in contrast to the highly compromised objective analysis reflected Interms of Organizational/managerial interference. All in all the practice of Project identification and design is challenged by both internal and external factors. Mainly narrow requirement by donors, Absence of exhaustive Government policy & Plan, absence of data for coherent analysis & decision-making and low capacity of local government to be the major one. On the other hand, internal challenge like Interdepartmental competition for resource and reactive grant acquisition strategy compromise the process. Finally, the study forwards recommendations like the need to have well-crafted fund acquisition strategy, tools and resources and more importantly the need to have a project ideas appraisal framework that is contextualized for Humanitarian industry.