| Abstract | Community forestry is one of the most successful strategies for the sustainable development of forests in Nepal. Forest user groups are the key actors to plan, manage and implement this programme. Many donors working in Nepal are supporting for the development of community forestry programme. Forest User Groups (FUGs) are also raising fund for the implementation of their forest-related programmes with the support of district forest offices. This paper presents the sources of FUG's fund and its mode of mobilization. Earnings from the sale of forest products, membership/entrance fees, interest earned by lending FUG's fund to the users and grant obtained from HMG/Donors agencies are the main source of income. Forest development activities, community development activities and money lending to FUGs members are the major field of FUGs fund mobilization. It indicates that community forestry programme acts as a key economic source for the rural/community development of Nepal. |