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Cash Assistance: Restoring dignity and driving change
In the aftermath of disasters, humanitarian aid often conjures images of trucks loaded with sacks of rice, canned goods, and hygiene kits. But increasingly, experts argue that the most powerful form of assistance isn’t a box of supplies, but it’s cash. Learn more about how and why Norwegian Church Aid works with Cash Assistance.
“We don’t decide for people. They know what they need in times of crises and we give them the freedom to choose”
says Arnel Limpiada, Senior Advisor in Norwegian Church Aid.
He explains why giving money directly to people in crisis is transforming the way aid works.
Cash assistance doesn’t just help individuals. It strengthens entire communities. When families spend money locally, markets revive, businesses reopen, and jobs return. This ripple effect, known as the multiplier effect, stimulates economic recovery far beyond the initial transfer.
“It also saves aid agencies millions in logistics. Instead of renting warehouses and transporting goods across dangerous terrain, cash can be delivered digitally or through secure distribution points”.
Arnel Limpiada
In places like South Sudan or the Philippines, where supply chains are fragile and islands are hard to reach, cash is often the only practical solution. It keeps grocery stores open, supports transport services, and sustains livelihoods, all while meeting urgent needs.
Dispelling the myths
Critics worry that cash will be misused on alcohol or cigarettes. Research consistently proves otherwise.
“There’s a very small chance they won’t use it for what they need,”
Limpiada emphasizes.
Studies show that recipients overwhelmingly spend money on essentials like food, shelter, medicine, and school fees. Because survival, not indulgence, drives their decisions.
Cash and Voucher Assistance (CVA) is a highly effective tool in providing humanitarian assistance.
Statistics show that cash assistance is often more cost-efficient than in-kind aid, empowers recipients with choice and dignity, and stimulates local economies. (https://www.calpnetwork.org/web-read/the-humanitarian-reset-less-money-more-cash/)
Making cash work
Delivering cash responsible requires careful planning. Norwegian Church Aid assess whether markets are functioning, ensure safe distribution, and choose appropriate delivery mechanisms. Security is paramount, as is listening to recipients.
- For Norwegian Church Aid is do no harm very important, Limpiada, says, and add that aid should never expose families to risk.
Collaboration is key. Finance team, logistics teams, and program staff and Monitoring and Evaluations teamwork together to ensure transparency and accountability. Monitoring how cash is used and its impact on communities is part of the process.
Flexibility in times of crisis
Benedicte Næss Hafskjold, Head of Division for Middle East, Asia and Latin America in Norwegian Church Aid, has supported with cash assistance in many crises.
Unlike traditional aid, cash is adaptable.
“After the earthquake in Syria, families used cash to repair homes, pay for medical care, and buy food. These are choices aid agencies could never anticipate for every household. Cash assistance bridges gaps across sectors. Food security, shelter, health, without forcing rigid program boundaries”
Hafskjold says.
A paradigm shift
Benedicte Næss Hafskjold says that cash gives people the freedom to choose.
“That freedom is at the heart of cash assistance. When an earthquake strikes or conflict uproots families, needs vary widely. One family might prioritize food, another medicine, and yet another repairing a damaged roof”.
Traditional aid often forces a one-size-fits-all solution, delivering goods that recipients may not need. In some cases, families sell donated items just to buy essentials. Cash changes that dynamic. It empowers people to make decisions for themselves, decisions that restore dignity during chaos.
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