Value for Money at Mercy Corps
How can we meet growing humanitarian and development needs with limited financial resources? How do we analyse and inform intervention selection as well as programme adaptation and learning?
Value for Money (VfM) is part of our commitment to steward resources with care, measure results with transparency, and keep equity at the centre—so that every investment creates the greatest possible, most lasting change. We use consistent and reliable analytical tools to ground decisions in evidence, and we treat VfM as best practise across design, delivery, and learning.
How we analyze Value for Money
VfM is not a single tool or method, but a way of thinking about maximising the impact of resources to improve people’s lives. It is about continuous improvement, financial accountability, and making evidence-based choices to deliver the greatest possible impact with available resources.
To assess Value for Money, Mercy Corps embraces FCDO’s approach centred around the five E’s:
- Economy
- Efficiency
- Effectiveness
- Cost-Effectiveness
- Equity
We aim at ensuring that VfM is considered throughout all phases of the programme cycle.
VfM analysis conducted so far
Our VfM products and services
- Value for Money analysis
- Cost analysis (cost economy, cost efficiency and cost effectiveness)
- VfM framework
- VfM capacity development (training, workshop)
- VfM policy and guidance
Value for Money Resources
Our guidance and VfM methodology
At Mercy Corps our approach to Value for Money is guided by the VfM at Mercy Corps guidance. This guidance provides a concise overview of how VfM is applied across the organisation, emphasising its role in strengthening financial accountability and supporting the design of high-impact interventions within constrained budgets.
How we conduct cost analysis
Cost analysis plays a central role in Value for Money (VfM) assessments and in addressing evaluation questions under the 5Es framework. It examines the financial resources required for an intervention by identifying, quantifying, and categorising costs, and assesses whether those resources are allocated efficiently, effectively, and equitably in alignment with intended outcomes.
At Mercy Corps, we leverage Dioptra software to conduct cost analysis, generating insights that inform considerations about Economy and Cost Efficiency. Dioptra is a web-based tool that follows a standardised costing methodology, ensuring that results are consistent, grounded in recognised metrics, and comparable across different contexts and organisations.
The tool is managed by a consortium of eight NGOs—Acción Contra el Hambre, CARE, Catholic Relief Services, Danish Refugee Council, International Rescue Committee, Mercy Corps, Norwegian Refugee Council, and Save the Children—creating a trusted environment for sharing technical expertise, analysis results, and programme insights.
Reports
Please contact Federico Ercolano for additional information or questions.