The expected objective of this research is to determine and analyze the effect of Village Fund Allocation and Village Fund Allocation on improving the welfare of rural communities through performance management in the Jeneponto Regency. This research was conducted in 11 villages in 11 Districts in Jeneponto Regency and lasted for approximately 2 (two) months from January to February 2021. The population in this study were the existing Village Apparatus and Village Consultative Body (BPD). In 11 villages in 11 sub-Districts in Jeneponto Regency, as many as 258 people. The sampling technique used simple random sampling, and the final sample included was 165 people. Data collection techniques through observation, interviews, questionnaires, and documentation, while data analysis using path analysis. The results showed that the allocation of village funds, village funds, and performance management encouraged increased community welfare as indicated by the rise in village community income, improved health, availability of savings, adequate conditions and facilities, and ease of service. Village fund allocation is realized through the development of village communities individually, meaning that there is empowerment, creating peace, serving village communities, encouraging self-reliance, and increasing village income. This is different from village funds intended to promote the village economy and make the community the subject of development. On the indirect effect, performance management is an intervening variable that can moderate both the independent and dependent variables. The difference in this study is the use of the variable allocation of village funds and village funds separately, proving that the budget allocation for the two sources of funds can have different implications in promoting welfare.