New Evidence Shows How to Stretch Humanitarian Dollars and Save More Lives with Cash Transfers
Dioptra Consortium Releases Largest Cost-Efficiency Analysis of Its Kind, Showing Huge Efficiencies in Delivering Cash Aid at Scale and the Potential Power of Cash Aid
At a moment when humanitarian funding is under unprecedented strain, the Dioptra Consortium has released compelling new research that shows how the aid sector can reach more people with limited resources by applying cost-efficiency data to cash transfer programs.
The evidence brief, Stretching Humanitarian Dollars: New Evidence on Maximizing the Reach of Cash Transfers, is the largest cost-efficiency analysis of its kind, drawing from 70 studies of unconditional cash transfer (UCT) programs for basic needs in 29 countries. The findings demonstrate that delivering cash at scale is significantly more efficient, revealing a clear path for donors and implementing organizations to maximize every dollar spent.
Key findings include:
Cash is highly effective in meeting people’s basic needs and remains one of the most efficient ways to deliver aid at a median cost of 67 cents to deliver every $1 of cash.
Unconditional cash transfers reach the most people in need per donor dollar when delivered at scale. Bigger programs that transfer more total cash to a larger number of recipients are the most cost-efficient.
Cost-efficiency is predictable and actionable: By following the “one-two-three recommendations”, donors and implementers can design smarter programs from the start.
Meeting these thresholds can reduce delivery costs by 20% or more, meaning more people can be reached with the same level of funding.
The Dioptra Consortium is calling on donors and implementers to apply these insights when designing and funding cash transfer programs—adopting the “one-two-three recommendations”: at least $1 million in cash program budget, 2,000 households reached, and 3+ months of cash transfers. By coordinating efforts and consolidating programs across sectors, the aid community can unlock economies of scale, reduce duplication, and ultimately save more lives.
This new research builds on the Dioptra Consortium’s mission to make cost-efficiency data widely available and actionable across the aid sector. Using tools such as Dioptra to conduct cost analysis can help to improve the value for money of program interventions.
The Dioptra Consortium includes Acción Contra el Hambre, CARE, Catholic Relief Services, Danish Refugee Council, International Rescue Committee, Mercy Corps, and Save the Children. For any questions or more information, please contact: www.dioptratool.org/contact-us