BDRCS Cash and Voucher Assistance
BDRCS
Donation

FAQ

  1. Cash is efficient.

With cash, the organizations are able to spend fewer resources and reach more people. According to a four-country study comparing cash transfers and food aid, 18 percent more people could be assisted at no extra cost if everyone received cash instead of food.

  1. Cash is dignified.

Cash gives the freedom of choice. With traditional in-kind assistance – like soap, blankets, and rice – displaced people often sell these items, below market price, to get something they need more. Cash aid allows them to keep the full value of the support they receive, and to prioritise according to their needs.

  1. Cash supports the local community.

Cash can boost local economies and play a role in rebuilding markets after an emergency. In Lebanon, for example, a 2014 study showed how cash-based interventions had a significant multiplier effect on the local economy: each dollar spent by those receiving the cash assistance generated USD 2.13 of gross domestic product for the Lebanese economy.

  1. Cash can make humanitarian assistance more transparent.

Electronic cash transfers make it easier to show how much of the assistance is actually reaching the target group. It is possible to document, control and to some extent measure the effects of the assistance we give, and in this way, humanitarian organizations will be more accountable to those receiving assistance, as well as to donors and taxpayers in donor countries.

  1. Cash should be given in combination with other types of assistance.

Cash cannot meet all needs in every humanitarian crisis. Humanitarian organizations often do a combination of different kinds of assistance, so that all the needs are met. But cash is not always the best alternative in a humanitarian crisis. Cash should not be used when there are no functioning markets, there is no safe way to transfer the assistance or cash transfers could put staff or receivers at risk. Cash should only be used when it is the most effective and efficient way to meet the needs of affected populations.

The local markets will be too weak or will not have enough products to meet the demand and cash could lead to inflation.

Cash based intervention can be undertaken at any time in the emergency-development continuum and in response to any need for which economic access is the primary barrier. Applications include, but are not limited to:
When
Pre-disaster In preparation for a forecasted shock or as part of a disaster risk reduction program
Initial stages of a disaster To meet immediate, essential food, non-food, and income needs and/or protect/re-establish livelihoods and provide shelter
Recovery or transition period To help re-establish/support livelihoods and/or provide shelter or short-term labor opportunities for the benefit of the community.
In permanent/ chronic crises To contribute to poverty alleviation, the shift from humanitarian programming to social assistance, address essential food and non-food needs, and support/establish livelihoods.
During conflict To meet immediate needs and contribute to livelihoods support or establishment.