Friends of Sankhu (FOS) is a non-government organization registered under the Association Registration Act 2034 of Nepal. It was established in 1991 with the vision of enhancing rural development through the creation of self-awareness among the people of the community.  It mobilizes people to make collective efforts for their own socio-economic development, environmental protection, and human resource development. FOS believes that community members themselves are most knowledgeable about their problems and with proper orientation, motivation and training can identify the best way to solve them.  Thus for the development initiatives to be successful, emphasis must be placed on involving target beneficiaries throughout the entire process, from need identification to action. Community involvement in all stages provides people with the opportunity to acquire new skills and knowledge, overcome obstacles, and ultimately build confidence.  FOS believes that the development process is a continuous process and it can be sustained only through the community’s participation in needs assessment and prioritization of these needs. The primary resources of FOS are approximately 60 members, who are highly committed development workers devoted to alleviate worst forms of poverty in the rural areas.

FOS has its office at historic site at Sankhu bazaar, which is located about 20 km northeast of Kathmandu. FOS has own office building in Sankhu and Sindhupalchowk. The bazaar is a semi-urban conglomerate of three Village Development Committees (VDCs) of Sankhu Vajrayogini, Sankhu Suntole and Sankhu Pukhulacchi. It is the only market center for the nearby two VDCs of Nangebhare and Lapsephedi. It is at the edge of Kathmandu valley with the last bus-station of the area offering various services to almost 18502 inhabitants in the 2954 households of this VDCs. Sankhu bazaar enjoyed the position as a gateway of the trade route linking Kathmandu to Tibet until the construction of a highway.

FOS has formed 100s of women groups comprising 5500 women members in Sindhupalchowk, Kavre, Kathmandu and since 1998 and functioning as cooperative in the respective districts.

Right by this year FOS has got approval for implementing micro finance bank named "Nepal Seva Laghu Bitha Sansthan" represented by more than 5200 households.