Multipurpose Cash
"Multipurpose Cash (MPC)...
... are unrestricted cash transfers that people affected by crises can use to cover their basic needs. By its nature, MPC is the assistance modality which offers people a maximum degree of choice, flexibility and dignity." (CALP Network Website, 13.12.2023: Multipurpose Cash Assistance)
Multi-purpose Cash Assistance (MPC or MPCA) comprises financial transfers tailored to meet the amount of money required to cover, fully or partially, a household’s basic and/or recovery needs. Cash transfers are ‹multi-purpose› if explicitly designed to address multiple needs, with the transfer value calculated accordingly. The extent to which a cash transfer enables basic needs to be met depends on the transfer value. MPC transfer values are commonly tied to expenditure gaps, utilising benchmarks such as the Minimum Expenditure Basket (MEB) or other monetised calculations reflecting the amount essential for covering fundamental needs (CALP Glossary 2023).
MPC requires new ways of collaboration between humanitarian actors, at all stages of the programme cycle, and across sectors. While solid tools exist to support collaboration, challenges related to coordination, interoperability and data sharing can still be bottlenecks, hindering the efficient delivery of humanitarian assistance.
SDC is a proponent of multipurpose cash as an efficient and effective modality to provide access to basic goods and services, while providing choice and dignity to people in need and supporting the recovery of local markets. As an actor, advocate and donor, SDC is working to improve the quality of multi-purpose cash assistance and the efficiency and effectiveness of cash coordination, with the overall goal to provide the best possible assistance to the people we serve.




