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-based assistance – giving money directly to people affected by crisis rather than handing out aid packages.
6 reasons why we are putting cash directly in people's hands
In 2024 alone, NRC distributed over USD 120 million in cash assistance, reaching 2.2 million people across more than 30 countries. Here's what you need to know about the approach that is transforming humanitarian aid:
In 2024 alone, NRC distributed over USD 120 million in cash assistance, reaching 2.2 million people across more than 30 countries. Here's what you need to know about the approach that is transforming humanitarian aid:
1. Immediate relief when it matters most
Cash provides instant access to life-saving goods and services – food, shelter, healthcare, and clean water. Whether it's a family escaping conflict in Ukraine or communities rebuilding after flooding in South Sudan, cash allows people to meet their most urgent needs quickly and effectively.
2. More people reached, less money wasted
The numbers don't lie: cash-based programmes reach 18 per cent more people compared to traditional “in-kind” assistance, whereby food and other supplies are physically handed out (source: ODI). With reduced operational costs and a smaller environmental footprint, cash stretches humanitarian budgets further while minimising waste.
3. People prefer cash – and for good reason
NRC’s own surveys show that people in crisis overwhelmingly prefer receiving cash over pre-selected items. This is also confirmed by other humanitarian actors. The reason is simple: cash puts control back in their hands.
Instead of receiving standard kits that may not meet their specific needs, families can purchase exactly what they require. This flexibility allows them to address complex challenges as they arise, whether that's medicine for a sick child, materials to repair a damaged roof, or school books.
4. Dignity in times of crisis
Being forced to flee your home is already a dehumanising experience. Traditional aid distribution – standing in queues, accepting whatever is given – often adds to this loss of dignity.
Cash assistance allows people to make their own decisions and meet their needs through normal market interactions. This simple shift from being a passive recipient to an active decision-maker can have profound effects on people’s mental wellbeing during crisis.
5. Boosting local economies
When we provide cash, the benefits extend beyond the individual recipient. Money spent at local markets, shops and service providers helps stimulate economic recovery in crisis-affected areas.
In fact, studies show that every unrestricted dollar distributed generates two dollars of value through this multiplier effect. Cash doesn't just help individual families – it helps rebuild entire communities.
6. We've only scratched the surface
Despite the clear advantages, cash and voucher assistance currently accounts for only about 21 per cent of international humanitarian aid. Experts estimate this figure could be as high as 45-50 per cent if cash were used in all situations where it's feasible and appropriate (source: CALP).
At NRC, we're committed to expanding our cash programming wherever it makes sense. In 2024, cash assistance was integrated into all our field activities. Over 80 per cent of our multi-purpose cash assistance was used to support people in emergencies.
Cash isn't always the answer – some crises require specialised services or goods that money alone can't provide. But where markets are functioning and people can safely access them, cash gives crisis-affected communities what they need most: the power to help themselves.
Read more about cash-based interventions in our programming.