Concern and value for money

Concern and value for money

23 October 2012

As budgets become constrained and there is increased competition for a reduced pot of resources, development agencies are increasingly under pressure to show they are delivering value for money. It is becoming a means for distinguishing between programmes and projects and to help donor agencies and philanthropic funds, particularly those who come from a more private sector / business background, decide which ones to fund.

 

Concern also has a duty to the public for funds raised from them to show that their money is making a difference, and in 2010 made a commitment to strengthen our assessment of Value for Money in all of our work making value for money a major component of discussions around financial accountability. In this regard it is essential for Concern to show that it is taking value for money seriously in its programme design and implementation. This paper makes some basic suggestions on what we can do to improve how we address the issue.

Below is an excerpt from this paper. Click on the link to read the publication in full.

Concern Worldwide has made a commitment to ensure that we are giving value for money both to our donors and to the people we target with our work. This means we need to consider VfM in our programme design to ensure that the maximum level of benefits are reaching as many of our target group (the extreme poor) as possible, in a way that increases their assets and their return on these assets, addresses inequality and reduces their risk and vulnerability. In that respect it needs to become central to our organisation-wide thinking. Incorporating Value for Money in our programme design entails the comparative analysis of alternative courses of action in terms of their costs to bring about the same outcome or impact and needs to be integrated in both the Country Strategic Planning process and the Contextual Analysis undertaken in the development of new programmes. In that respect, VfM is a tool for decision-making. However, we need to be very careful in trying to assess or compare the costs and outcomes between programmes because of the different contexts in which they will be implemented. There is also significant pressure from funding agencies for us to show that we are considering Value for Money in our programmes, however the lack of clarity across these agencies in terms of what they are actually referring to allows us the opportunity to take the lead in this discussion and show how we are considering the issue.

 

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Concern and value for money

As budgets become constrained and there is increased competition for a reduced pot of resources, development agencies are increasingly under pressure to show they are delivering value for money. It is becoming a means for distinguishing between programmes and projects and to help donor agencies and philanthropic funds, particularly those who come from a more private sector / business background, decide which ones to fund.