Cash and Voucher Assistance (CVA) is revolutionizing how humanitarian funding is offered.

In 2022, CVA is reported to have accounted for 21% of international humanitarian aid, with a staggering $10 billion worth of CVA development aid given out. This was a notable rise from the 20% of International Humanitarian Assistance (IHA) CVA represented in 2020, demonstrating its expanding usefulness.

Rather than simply receiving supplies, people can now purchase items necessary to them. You can see how this approach gives more freedom and dignity while supporting local businesses.

Understanding CVA helps you see why it’s a powerful tool in humanitarian aid today.

Also Read: Why Feedback and Complaint System Is Important for NGOs?

What is CVA?

A form of humanitarian aid known as Cash and Voucher Assistance (CVA) provides cash or vouchers to those impacted by emergencies. It enables people to purchase goods and services for themselves, according to their own needs and tastes, in contrast to material aid like food or blankets.  

Types of Cash and Voucher Assistance

You should know the different types of cash and voucher assistance to understand how they help people in need effectively.

Cash Transfer

When people affected by a crisis are given physical or digital cash, it is termed a cash transfer. This allows them to purchase whatever is most required at the moment, which is an act that helps them retain their dignity and freedom.

Cash transfer benefits, or CVA, with vouchers, accounted for 81% of humanitarian aid in 2022, an increase from 72% in 2021. In 2022, over 406.6 million people needing humanitarian assistance received cash transfers.

This approach is effective because it provides quick relief and supports local markets. By understanding cash transfers, you can see how humanitarian aid is becoming more flexible and impactful for those in need.

Vouchers

Vouchers are a great way to help while ensuring people get what they need. You can use them to buy specific goods or services, like food, shelter materials, or medical supplies.

Some vouchers have a fixed value, while others allow you to get a set quantity of items. This method ensures support is targeted and controlled, helping individuals and local businesses. In 2022, vouchers comprised 19% of total assistance, while 81% came as cash transfers.

By using vouchers, you can ensure that aid reaches those who need it in a structured and efficient way.

Also Read: Challenges of Using Technology for Humanitarian Aid

Why Cash and Voucher Assistance Is Changing Humanitarian Aid

You should know how cash and voucher assistance transform humanitarian aid, giving people more choice, dignity, and flexibility.

Increased Proportion

Cash and voucher assistance is becoming a bigger part of humanitarian aid. Since 2017, its share has grown by 7%, with 21% of international aid in 2022.

You can see how this shift is helping people more effectively. Instead of receiving fixed supplies, they can buy what they truly need. This approach also supports local businesses and economies, making aid more impactful.

As more organizations adopt this method, you will notice a stronger focus on dignity and choice in humanitarian efforts. Cash and vouchers are shaping the future of aid in a meaningful way.

Empowerment and Dignity

Cash and Voucher Assistance (CVA) is transforming the business of aid delivery, and it is all about making you the decision maker. Rather than receive fixed commodities such as food or blankets, you can determine what you require the most.

Whether it is food, medicine, or school supplies, it is entirely your decision whether to use cash or vouchers. This approach to aid gives you respect as well as the opportunity to set priorities according to your circumstances.

CVA accounted for 19% of total international humanitarian assistance in 2022. It is more efficient, cheaper, and promotes local economies. Aid is becoming more individualized with CVA, which makes it more useful and timely. It is an aid that is tailored to your needs.

Efficiency

Cash and voucher programs (CVP) are helping humanitarian assistance evolve more effectively by giving you the power to decide.

Rather than providing a person with a predetermined set of goods, CVP allows beneficiaries to purchase what is of greatest need, such as food, medicine, or housing. This approach is faster, more efficient, and respects your dignity.

Studies show that CVA can reach 30% more people with the same budget than traditional aid (World Food Programme, 2021). It’s also flexible, allowing you to support local markets and recover faster.

CVA isn’t just aid. It’s empowerment, giving you the power to rebuild your life.

Local Economy Support

The Cash and voucher assistance (CVA) model gives you autonomy over humanitarian aid and puts the power in your hands. As opposed to giving you direct support and pre-selected items, CVA lets you choose what you need while supporting local economies.

For example, in 2022, 19% of CVA was distributed globally, allowing aid recipients to recover quicker than normal.

Local shops benefit from this approach as CVA allows individuals to buy any products they need, thus boosting local businesses. This method not only strengthens the community but also creates jobs.

In essence, this CVA model strengthens a community’s economy while making aid more effective and sustainable.

Flexibility

Cash and Voucher Assistance (CVA) is a new form of humanitarian assistance that offers greater choice and flexibility.

CVA enables people in need to select the specific items they require, be it food, medicine, or clothing. This model protects the beneficiary’s dignity while stimulating the local economy.

In 2022, CVA reached over 35 million people globally. Cash transfers and vouchers can be disbursed much faster and without the added logistical operations associated with selling goods.

When people have resources at their fingertips, they can use them in the best possible way for their families. CVA is assistance provided in ways that best support the person—not just helping around him.

Also Read: AI Enabled NGOs: Top 13 Organisations Changing the World

Conclusion

People in need can be supported using cash and voucher assistance, one of the most powerful ways.

People can choose what they want: food, medicine, clothing, or even shelter. Cash gives them a say during a crisis and helps local businesses as the money stays in the community.

Cash and vouchers will consistently stay at the forefront as humanitarian aid grows. Vouchers and aid systems will almost always give the most effective solutions to the problems that need to be solved urgently.

At Innovation Consulting & Solutions (ICS), we aim to deliver top-tier cash and voucher assistance solutions tailored for NGOs, leveraging advanced AI technologies. Givy is one of our systems available for e-voucher assistance.

Givy has completely transformed how aid is distributed using its e-voucher system, making the process easier, faster, and safer. This allows the aid to get to the right people efficiently – something that is desperately needed in vulnerable communities.

With our expert consulting and customized programs, we strive to help organizations tackle on-the-ground challenges, streamline operations, and expand their impact in delivering aid.