This study adopts a community stakeholder approach to analyze the stakeholders' perceptions on foreign aid and NGO-driven reforestation programme in an impacted community. The focus of the study, the Sagarmatha National Park Forestry Project (SNPFP), has operated in Khumbu, Nepal for thirty years.The overall performance and impacts of the SNPFP were assessed by interviewing key informants with regard to their experience and perceptions. Qualitative analysis revealed the gap in the involvement of multiple donors and identified how these gaps impacted on quality of foreign aid and NGO-led project. The implications of this study include the recommendation that the immediate stakeholders in a local area are a reliable source of information to measure the value of foreign aid and NGO performance. Furthermore, the future of natural resource conservation and rural development led by foreign aid and NGOs depends on collaboration between the local people, the NGOs, donors, and the government.