2. Key Concepts in CBI
Cash Transfer Programming (CTP) Using cash grants or vouchers as economic assistance to enable households or individuals to meet identified needs (e.g. food and non-food items, shelter, services, or assets). CTP is not a sector itself, but a tool that can be used in early recovery or development responses. CTP differs from in-kind programming in that beneficiaries obtain goods and/or services directly from the local market and service providers.
Conditions Cash grants or vouchers are conditional when CARE or its partners are implementing the transfer only after recipients have performed some task or activity as a condition of receiving the transfer. Conditions may include: performing some work (e.g. infrastructure maintenance, repairs, or development, or creation of community assets), undergoing some form of training, enrolling children in school, or having children vaccinated.
Restrictions Cash grants are restricted when CARE or its partners limit how beneficiaries may spend cash. Common conditions include requiring the money to be spent on: food, educational expenses (e.g. school fees, school uniforms, etc.), shelter materials, inputs, assets, or works. Vouchers are restricted by nature.
Multi-purpose and multi-sector CTP Multi-purpose and multi-sector cash programs address needs across the sectors and clusters by which relief operations are traditionally organized. Multi-sector programs address more than one sector in the intervention and are designed to create specific, simultaneous impacts in the sectors involved. In multi-sector programs, M&E and expenditure are monitored by sector to ensure sectoral impacts are felt.
Cash For Work (CfW) This form of conditional cash grant requires beneficiaries to fulfill the condition of ‘work’. Cash for work is different from employment generation, because the primary purpose of cash for work transferring income and resource to people, and the work done is a secondary outcome. CfW can provide the dual benefit of cash income and the individual or collective benefit of the work being done, as well.
Cash grant The provision of money to beneficiaries (individuals, households, groups, communities, or businesses) to cover one or several of their identified needs. Cash grants can be conditional or unconditional and/or restricted or unrestricted.
Cash transfer modality Refers to the different types of cash programming. These include cash grants and vouchers.
Cash payment mechanism/agent This refers to the financial system used for transferring cash or vouchers to beneficiaries, and can include banks, post offices, micro finance institutions, remittance companies, village savings and loan associations (VSLA), etc.
Cash delivery instrument This refers to the tools that beneficiaries use to access the cash given to them, and can include bank checks/drafts, postal orders, direct cash, smart cards, mobile phones, etc.
E-transfers These include the use of digital means for transferring cash or vouchers from the implementing agency to beneficiaries. E-transfers include cash grants through mobile phone or SMART card (ATM card, pre-paid card) and access to goods and/or services through electronic vouchers.
Voucher A paper or token that can be exchanged for a set quantity or value of goods, either with a value attached (e.g. $15) or predetermined commodity or service (e.g. 5 kg maize; milling of 5kg of maize). Vouchers are redeemable with pre-arranged vendors or in ‘fairs’ created by the agency. Vendors are paid by the contracting agency when they present these vouchers or evidence of exchange between the trader and beneficiaries.
E-voucher A card or code that is electronically redeemed at a participating distribution point. E-vouchers can represent cash or commodity value and are redeemed using a range of electronic devices.