Maybe, Nepal is one of the most interesting countries in which to investigate the dynamics of international and local NGOs as well as how development and foreign aid affect beneficiaries’ lives, because over 47,000 International and local NGOs are registered in the Social Welfare Council of Nepal. In spite of the numerous international and local NGOs and abundant foreign aid, Nepal still remains one of the poorest countries in South Asia. This paper explores the potential and challenges of the use of cultural sustainability as an underpinning foundation for creativity and innovation from the perspective of a developing country by focusing on the case of a local NGO in Nepal, the Sukawati Foundation. Among many local NGOs in Nepal, Sukawati Foundation is unique, which can be shown as creative and innovative, in terms of building partnership with its community, authorities (i.e., government officials), and its aid organization, Beautiful Foundation, in Korea. The purpose of this study is not to generalize but to gain an understanding of the relationship among cultural sustainability, creativity, and innovation in aid-dependent countries by closely looking at a case by adopting qualitative research methods.