The general objective of this study was to assess the effect of stakeholders' participation on the performance of donor-funded projects in Rwanda. Specifically, the study seeks to find out the effect of passive participation of stakeholders on the performance of schools and system project implemented by Save the Children in Rwanda, investigate the effect of interactive participation of stakeholders on the performance of schools and system project implemented by Save the Children in Rwanda, and evaluate the effect of functional participation of stakeholders on the performance of schools and system project implemented by Save the Children in Rwanda. The survey design collected data via the use of questionnaires, while the correlational approach investigated the connection between the variables under consideration. The target population of this study was 126, including 24 schools and system project staff, 72 Save the Children staff at district level, and 30 District education offers. The Solvin formula yielded a sample size of 96. The clusters were chosen based on the positions and categories of stakeholders in schools and system project to save children. The following tools were used to collect data for the study: a questionnaire and documentation research. To analyze the gathered data, the researcher used both descriptive and inferential statistical techniques to show the effect and relationship between the variables. The statistics were computed by Statistical Product and Service Solutions (SPSS) version 23. It was shown that Passive participation (p=0.832) is not statistically significant in the performance of schools and system project implemented by Save the Children in Rwanda, while interactive participation (p = 0.000) and functional participation (p= 0.000) are statistically significant in the performance of schools and system projects implemented by Save the Children in Rwanda. Therefore, this study recommends that Save the Children establish mechanisms to monitor and evaluate stakeholder performance, holding them accountable for fulfilling their roles and responsibilities while also recognizing and rewarding their contributions.