This study examined challenges and opportunities faced by Ethiopian Charitesrnpredominantly focusing on financial sustainability, organizational capacity and publicrnimage. Though, different studies are conducted on Ethiopian CSOs, there is no previousrnresearch conducted on challenges and opportunities faced by Ethiopian Charites.rnTherefore this study clearly indicated challenges and opportunities faced by Ethiopianrncharities. The research has employed a mixed methodology using different datarncollection technique such as document review, key informants interviews andrnquestionnaire. Participants of this research were 20 directors/senior managers fromrnEthiopian charities and 5 ChSA NGO desk officers. The data obtained from the abovernparticipants using the stated techniques have been analyzed using different statisticalrnmethods such as percentage and frequency for quantitative data and coding and wordrndescription for qualitative data to inform the research inquiry. This study has focused onrnthree thematic areas namely financial viability, organizational capacity and public image.rnThe other areas (legal environment and advocacy) are not included in this study due tornlimitation of time and information. The findings of the study show that, majority ofrnEthiopian charities are facing myriad challenges with regard to financial sustainability,rnlimited organizational capacity and negative Public image. The study has also identifiedrnuntapped opportunities that Ethiopian charities will explore in their area of interventionrnand thereby to coup up challenges. Taking into account the untapped opportunitiesrnrecommendation are forwarded. Accordingly, Ethiopian charities need to be committedrnto address internal capacity limitations via restructuring their system and set up. Donorsrnon the other hand have to improve transparency in funding decisions and also considerrnthe need for increased commitment to the capacity building support in the priority areasrnhighlighted by Ethiopian charities. Ethiopian charities and their networks, as well asrnother pertinent stakeholders should aggressively work towards improvising relationshipsrnand foster a positive image of Ethiopian charities. Ethiopian charities need to establishrnmeaningful partnership and alliance. Hence, financial constraints, lack of capacity andrnnegative image will improve