Ukraine Cash Localisation Pilot
Strengthening Local Capacity for Effective Cash Assistance: CCD Network's 'Collective Initiatives' Programme in Response to the Ukraine Crisis
Background
Since the full-scale invasion of Ukraine in February 2022, more than 14 million people are in urgent need of humanitarian aid, with approximately 8 million requiring Cash and Voucher Assistance (CVA) to meet their basic needs.
In response, the Collaborative Cash Delivery (CCD) Network launched the Collective Initiatives programme with funding from the Disasters Emergency Committee (DEC).
This initiative seeks to strengthen the capacity of local organisations in Ukraine and Romania to deliver effective CVA through a series of pilot projects, addressing the needs of vulnerable populations impacted by the conflict.
Cash Localisation Pilot
Save the Children International – Ukraine (SCI) partnered with CCD to launch a cash localisation pilot to enhance local NGOs' technical and organisational capacity in delivering and managing CVA programming.
The primary objectives of the pilot were to:
- Enhance the institutional capacity of local humanitarian actors to lead cash-based humanitarian responses.
- Equip local partners with the staff, knowledge, skills, and abilities (KSAs) needed to implement high-quality, locally-driven cash programmes.
A cascading training model was utilised, where the CCD Global Cash Trainer of Trainers (ToT) mentored an in-country Cash Trainer, recruited by SCI, who then collaborated with three local NGOs to provide Multi-Purpose Cash Assistance (MPCA) to affected communities.
Who are the Three Local NGOs?
Station Kharkiv is a charitable organisation that began as a volunteer initiative founded in 2014 in response to the conflict in eastern Ukraine. It supports internally displaced people (IDPs) and those in need by providing essential aid, including food, clothing, psychological support, and employment assistance.
Following the full-scale invasion in 2022, the organisation expanded to provide broader humanitarian aid, coordinating relief across Kharkiv and delivering psychosocial, legal, and healthcare services, especially to vulnerable communities in conflict-affected areas.
Staff had experience with CVA but wanted to deepen their knowledge and learn about MPCA and how to deliver a full cash cycle.
Slavic Heart is a humanitarian organisation that supports vulnerable individuals in Ukraine, particularly in child protection, women's rights, and domestic violence prevention. Since 2014, they have operated in both government and non-government-controlled areas.
In 2022, due to the conflict, they relocated from Donetsk to Dnipro but have since returned to their original base, a frontline area heavily affected by the war. Slavic Heart continues to address the urgent needs of communities facing severe hardships due to the ongoing conflict.
Some staff had experience with vouchers but not cash or MPCA.
The Charity Fund “Posmishka UA” was established in Zaporizhzhia in 2013, by a volunteer group to assist people facing challenging life circumstances and unite those willing to help. Since 2014, the Fund has aided those affected by the military invasion of Ukraine, particularly in the Donetsk and Luhansk regions.
Following the escalation of the conflict in February 2022, the Fund shifted to humanitarian response, focusing on psychosocial support, general protection, child protection, and prevention of Gender-Based Violence (GBV).
Staff had some experience of CVA registration, but not implementing a full MPCA cycle.
Implementation
The cash capacity strengthening initiative aimed to enhance the cash programming abilities of local NGOs through a structured approach that included assessing technical capacity and providing targeted support.
Training was delivered via in-person and online sessions, mentoring, and practical guidance, led by the Global Cash ToT and the in-country Cash Trainer.
As part of this effort, the in-country Cash Trainer conducted two introductory CVA sessions in February and June 2024, reaching 41 participants from 23 agencies.
A key focus was developing customised MPCA Standard Operating Procedures (SOPs) to strengthen organisational capacity, ensuring consistency and quality in project implementation.
Local NGOs typically have limited roles in CVA projects, mainly focused on registration and data collection. Acknowledging the importance of Monitoring, Evaluation, Accountability, and Learning (MEAL) in delivering high-quality cash programming, the CCD MEAL Manager offered additional training and coaching specifically on MEAL aspects related to CVA.
The training covered key topics, including Post-Distribution Monitoring (PDM), logical frameworks, indicators, and data analysis.
This enabled local NGOs to perform and analyse their PDMs in alignment with international standards.
In addition to strengthening cash capacity, Save the Children International organised and provided capacity development activities tailored to each organisation's specific needs and preferences.
These activities included first aid training, security training, and the Humanitarian Leadership Academy's Humanitarian Operations Programme (HOP), which covers the essential elements of setting up and managing a humanitarian response.
Challenges & Barriers
Recruitment Delays: Slow recruitment processes hindered the ability to have a cohesive project kickoff, preventing team alignment and understanding.
Lack of Project Clarity: Insufficient communication about the project's objectives, particularly regarding localisation, affected stakeholder motivation, especially among local NGOs.
Resistance to Change: Implementing new approaches faced challenges due to established processes and systems, requiring additional effort and senior-level support.
Limited Local NGO Involvement: Minimal participation of local NGOs in project design led to feelings of exclusion and disengagement.
Lost Capacity Building Time: Recruitment delays resulted in missed opportunities to train and build capacity for in-country Cash Trainers.
Administrative Complexity: Multiple funding sources added complexity and confusion, increasing the administrative burden on both Save the Children International and local NGO partners. Local NGOs also highlighted the onerous reporting demands and requirements.
Contractual Delays: Delays in signing contracts reduced the overall project implementation time and limited local NGOs' ability to execute their MCPA projects effectively.
Impact
Capacity Change
Increased Knowledge, Skills and Ability in Cash Programming: The Cash Capacity Assessments at the project's start and end demonstrated a significant improvement in local partners' capabilities. Initially focused on data collection, the NGOs enhanced their cash project management skills through tailored training and gained practical experience.
Cash Capacity Assessment Scores for Each Partner at the Beginning and End of the Project
Cash Capacity Assessment Scores for Each Partner at the Beginning and End of the Project
Progress in Capacity: The final Cash Capacity Assessments revealed significant improvements in CVA coordination among all partners, who have now become active members of the Ukraine Cash Working Group. Although the lowest scores were in the "Experience in CVA Programming" category—indicating limited prior involvement by some partners—the overall average scores exceeded 70%.
Combined Partners Average Final Cash Capacity Assessment Scores - Competency Breakdown.
Combined Partners Average Final Cash Capacity Assessment Scores - Competency Breakdown.
Localisation and Ownership: All partners confirmed a significant shift in their ways of working, resulting in local NGOs taking on more project elements and embedding capacity building into each step of the project.
Project Implementation and Impact on Beneficiaries
MPCA Project Execution: All three local NGOs effectively implemented the complete CVA cycle in the MPCA projects, achieving their targets. A total of 3,180 people across 1,328 households received MPCA due to this project.
Cash Delivery: Post-Distribution Monitoring (PDM) data confirmed safe and accountable cash delivery, with recipients indicating cash as their preferred assistance form in the project areas.
Development of Standard Operating Procedures (SOPs): All three local NGOs developed high-quality MPCA SOPs. These SOPs are ready for use in future projects to ensure continued quality implementation, providing a standardised framework that enhances efficiency, compliance, and team coordination.
" Almost all staff in our organisation have been internally displaced persons (IDPs), and we know how important it is to receive such assistance...it was great to share our experiences with partners. We could check our knowledge and see how it applies in practice.”
“The training helped us enhance our knowledge of CVA and make it more comprehensive and holistic. With new staff joining our team, they also participated in the training and gained a complete understanding of the cash cycle and the specifics of CVA.”
Anastasiia Horbachova & Nina Neshovorova
Slavic Heart
"This project aims to teach us the full cycle of providing cash assistance, and of course, we want to see these results, and we want to learn these new skills for us...and we want to provide this type of assistance.
The main thing is that people and families benefited from it...this is a professional growth, and growing is what we need in the field of MPCA provision.
Olena Vynnyk & Alice Venevtseva
Station Kharkiv
“Thanks to this project, our fund has already changed for the better because we gained the necessary knowledge during the training phase. That is why I think that, over time, we will become even better in this field.”
MEAL Staff, Posmishka
Key Recommendations
Allocate More Time for Capacity Strengthening: Providing ongoing support through training, coaching, and mentoring is essential for effective capacity strengthening. Sufficient time for these activities before, during, and after cash operationalisation helps build resilience and allows local NGOs and their staff to develop without feeling overwhelmed.
Prioritise Impact Areas for Organisational Capacity Development: While it’s important to align with local NGO priorities, focusing on deliverable, impactful areas enhances the quality of cash assistance. Key priorities include developing accountability measures (like feedback hotlines), and strengthening core functions like financial management, HR, MEAL, safeguarding, and Preventing Sexual Exploitation and Abuse (PSEA).
Balance Training with Cash Capacity Strengthening: While flexible training addressed local NGOs’ specific needs, it sometimes led to uncertainty around time commitments. Achieve balance by combining structured, pre-existing materials with adaptability and incorporating both into the Cash Capacity Strengthening Plan.
"International donors need to trust local humanitarian organisations a little more and listen to the opinions of local organisations that operate directly here all these years."
Clarify Project Commitments Early: All stakeholders, including international and local NGOs, should fully understand and formally agree to project objectives and commitments from the start. At times, local NGOs only realised the project’s additional workload after it began, hindering their ability to allocate adequate resources.
Ensure Dedicated Local Resources for Cash Capacity Strengthening: It’s essential to have dedicated local human resources for cash capacity-building activities. Many international NGOs lack a coaching approach for local NGOs. A key recommendation is to have at least one full-time Cash Trainer in-country, supported by a Global Cash ToT, to promote sustainable, locally-driven cash programming.
Rethinking Our Role: International NGOs should reconsider their practices to better support localisation and foster equitable partnerships with local NGOs. This project highlighted the importance of building local NGO capacity and emphasised key strategies for international NGOs: passing on donor flexibility, enabling Indirect Cost Recovery (ICR), and reducing delays that affect their partners.
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