14 April, 2025

When crisis hits, people need help fast. But what’s the most effective way to provide that help? Increasingly, humanitarian organisations are turning to cash assistance – giving money directly to people affected by crisis instead of distributing aid packages.

Global

In 2024 alone, the Norwegian Refugee Council (NRC) distributed over NOK 1.3 billion in cash support, reaching 2.2 million people in more than 30 countries.

Here’s why many aid organisations choose to give cash:

1. Immediate help when it matters most

Cash assistance provides instant access to essential goods and services – food, shelter, healthcare, and clean water. When people receive cash, they can quickly and effectively meet their most urgent needs – whether they’re families fleeing war in Ukraine or rebuilding after earthquakes in Asia.

2. We can reach more people, using fewer resources

The numbers speak for themselves: cash-based programmes reach 18% more people compared to traditional aid distributions of food and supplies (source: ODI). This approach also reduces operational costs and the environmental footprint, allowing aid budgets to go much further.

Myanmar: a woman receives cash assistance in the aftermath of the 7.7 magnitude earthquake

3. People prefer cash – and with good reason

People in crisis overwhelmingly prefer cash over pre-packaged aid. In ADRA’s recent response to the Myanmar earthquake, 71% of affected community members surveyed expressed that cash voucher assistance was their preferred method of aid. The reason is simple: cash gives people back control over their lives.

Instead of receiving standard aid packages that may not meet their specific needs, cash recipients can buy exactly what they require. This flexibility allows them to address challenges as they arise – whether it’s medicine for a sick child, materials to fix a damaged roof, or school supplies.

4. It preserves dignity in times of crisis

Being forced to flee is already a dehumanising experience. Traditional aid distribution – queuing and accepting whatever is handed out – can reinforce feelings of helplessness and loss of dignity.

Cash assistance allows people to make their own decisions and meet their needs through normal activities like shopping at the market or local shop. This shift from passive recipient to active decision-maker can have a profound impact on mental wellbeing during a crisis.

5. It strengthens local economies

It’s not just the individuals who benefit. Money spent in local markets, shops, and with local service providers helps to stimulate economic recovery in crisis-affected areas.

Studies show that each krone distributed can generate up to double the value through this multiplier effect. Cash assistance doesn’t just help families – it helps rebuild entire communities.

Fiji: Cyclone Yasa ravaged local crops, destroying local food supply and people’s source of income. Cash voucher assistance from ADRA allowed locals to purchase the food they needed. This approach meant they were also supporting their local markets.

6. We’ve only just begun

Despite the clear benefits, cash and voucher assistance currently accounts for only about 21% of global humanitarian aid. Experts estimate that this figure could rise to 45–50% if cash were used in every situation where it’s feasible and appropriate (source: Cash Learning Partnership / CALP Network).

Of course, cash isn’t always the solution – some crises require specialised services or items that money alone cannot provide. But where markets function and people can safely access them, cash assistance gives crisis-affected people what they need most: the opportunity to help themselves.

This article was originally written and published by the Norwegian Refugee Council. Slight edits have been made so the content is applicable to the ADRA context.

Tags:  Disaster,