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Non-autonomous Utilization policy has an impact on the use of villages funds not following community needs. One contributing factor is the emergence of regulations governing the technical use of village funds, from planning, implementation to reporting. This research aims to formulate an effective model of village fund management to improve community welfare. The method used in this research is empirical legal research, which allows researchers to be able to interact directly with the community in gathering research material. The research object was determined purposively in Borobudur District. The data obtained were then analyzed and presented qualitatively by the inductive method. The results showed that the Borobudur Village Government had developed innovations in the use of village funds through the mechanism of equity participation in the Village Owned Enterprises (BUMDes). This innovation was carried out by referring to the laws and regulations concerning the use of village funds, including Law No. 6 of 2014 concerning Village Funds. BUMDes is a collective economic activity between the village government and the village community. This condition can be seen in the construction of the Village Control Center (Balkondes) as a means to support rural tourism, which has implications for the Village Budget and Revenue.