4.3 Grant Amount Frequency

The grant amount can be calculated based on the project objective. Several methodologies described below are commonly used:

  • Cash for food amount is usually calculated based on the cost of a Food Basket.
  • Multipurpose cash assistance can be calculated by using one of the two main approaches:
    • Minimum Expenditure Basket (MEB) – a compilation of monthly costs of various items included in MEB.
    • Income vs. expenditure gap – the grant amount constitutes the difference between household income and household expenditures. The aim of the grant is to close the gap.
  • Cash interventions for livelihood activities quantify the needs through a business plan that the beneficiaries put together. Beneficiary capacities to provide some of the assets (e.g. if they already have them) can also be factored in.
  • Cash for work wage rates vary between skilled and unskilled workers but should not vary based on participants’ gender. They are usually set at 10‐20% below market rates26. Such a rate helps to ensure that the employment opportunities created by the project do not entice people away from their regular livelihood activities.

The following factors are taken into account to decide on frequency:

  • the urgency of the need;
  • the protection risks for beneficiaries when receiving large payment;
  • the capacity of the payment agent;
  • the project objectives.

The decision on the grant amount and the payment frequency is the responsibility of the CARE Project Manager and the Team Leader.