The MPCA (Multi-Purpose Cash Assistance) Program provides multi-purpose cash assistance to individuals affected by the crisis/war, particularly to vulnerable, low-income populations. It is an efficient, rapid, flexible, and transparent method of humanitarian response, ensuring basic needs are met. Cash assistance guarantees people freedom, dignity, and independence in determining their own recovery path while supporting local economies by revitalizing local markets.

Relevance of the Need

During the humanitarian crisis, Caritas responds to the immediate and urgent needs of the population by providing cash/voucher assistance to meet basic needs. In regions where a transition from the humanitarian phase to stabilization is possible, Caritas’ assistance is focused on restoring resilience for those affected and supporting the most vulnerable and socially disadvantaged segments of the population.

Among all forms of humanitarian aid, cash assistance is the most in-demand among beneficiaries because it:

• Preserves people’s dignity and allows them to make independent decisions based on their urgent needs during difficult circumstances
• Enables assistance in areas with limited access
• Is one of the most effective, transparent, and economically viable forms of humanitarian response
• Supports and activates local markets.

According to data from the Findings from Cash Assistance Post Distribution Monitoring Surveys in MENA 2022, 90% of beneficiaries prefer cash assistance.

Uniqueness of the MPCA Program and Its Sustainable Impact

Multi-purpose cash assistance not only supports individuals but also creates long-term positive effects for local markets and communities. Since funds from donors abroad are given to residents of local communities and are subsequently spent within those communities, local economies benefit. Specifically, through factors such as:

Strategic Goals of Caritas within the Program

• Improve social protection and support for the most vulnerable, low-income populations.
• Provide timely and effective responses to urgent needs, giving people the ability to independently choose how to spend the resources they receive.
• Enhance state social protection systems to not only respond to the consequences of crises but also to create sustainable and effective mechanisms for supporting vulnerable populations.
• Promote the development of innovative approaches to social protection that take into account individual needs and community contexts.

Areas of Activity

Multi-purpose cash assistance is provided to beneficiaries without conditions for its use or the need for reporting, which is undoubtedly convenient for them. An important requirement for utilizing multi-purpose cash assistance is the presence of functional markets and the ability to withdraw cash or make payments by bank card.

Key parameters of MPCA:

• The amount of assistance (cash grant) is UAH 3,600 per person per month.
• Assistance is provided for a period of 3 months, either as a lump sum or monthly, bringing the total grant amount to UAH 10,800 per person.
• The maximum number of cash grants per household is 4, meaning the maximum amount of cash assistance for one family is UAH 43,200.
• Methods of funds distribution: transfer to a bank IBAN account or via Ukrposhta branches.
• Registration methods: remote registration (allows for assisting the most vulnerable people in the most remote or dangerous areas).
• Funds are credited to the beneficiary within 2 days after registration in cases of emergency response or within 1-2 weeks in other situations.

Another form of multi-purpose cash assistance is SMPCA (stabilization multi-purpose grant), which is aimed at restoring the resilience of affected individuals and supporting the most vulnerable, low-income, and socially disadvantaged populations.

This grant provides longer-term support (not 3 but 6 months) to allow households to stabilize in the medium term.

Payment format: UAH 3,600 per person monthly for 6 months or twice within half a year at UAH 10,800 per person.

Program Implementation Format

Methods of informing beneficiaries about participation in the program:

Principles of Caritas Ukraine’s Cash Assistance

• Needs-based approach — Cash/voucher assistance is provided based on an analysis of beneficiaries’ needs and priorities to ensure its relevance and effectiveness.
• Respect for beneficiaries’ dignity — This is reflected in the involvement of beneficiaries in decision-making processes, encouraging their responsibility for their recovery, and providing them with the opportunity to choose options that best meet their individual circumstances.
• Market analysis and support — Understanding local market dynamics and the potential impacts of cash interventions on markets. Supporting the local economy, strengthening market systems, avoiding negative market distortions, and promoting sustainability.
• Protection and inclusion — Cash and voucher programs should not harm or exclude certain groups of people, prioritizing the safety and well-being of vulnerable groups.
• Accountability and transparency — Ensuring transparency in decision-making processes and open communication with beneficiaries. Establishing mechanisms for feedback and accountability so that beneficiaries can express concerns, provide feedback, and hold aid providers accountable.
• Coordination and cooperation — Coordinated efforts with relevant stakeholders, including local authorities and NGOs. Avoiding duplication of efforts, sharing information, and enhancing the impact of cash interventions.
• Risk management — Identifying and mitigating risks related to cash and voucher assistance, including financial, security, and protection risks. Developing and implementing risk management strategies to ensure the safety and effectiveness of cash interventions.

The following organizational processes have been established:

Geographical Scope

MPCA project implementation is possible through any local Caritas office across the country, considering the experience, established methodologies, SOPs, and teams ready for rapid response.

As of September 2024, MPCA was provided in the following regions: Donetsk, Zaporizhzhia, Kharkiv, Sumy, Poltava, Dnipropetrovsk, Odesa, Mykolaiv, Kherson, Khmelnytskyi, Lviv, Ivano-Frankivsk, Ternopil, and Volyn.

Categories of Beneficiaries

• Internally displaced persons (IDPs)
• People living in frontline areas or areas affected by disaster
• People who were forced to leave their homes and later returned to their permanent places of residence from abroad or other regions of the country
• People affected by military aggression or disasters
• People in transit
• Socially vulnerable, disadvantaged populations

Among these categories, assistance is provided to the most vulnerable, low-income, and socially disadvantaged individuals who cannot meet their basic needs.

Our Partners

The following donors and organizations have been involved in implementing MPCA projects and multi-sectoral projects with a cash assistance component in 2022-2024:

• Caritas Germany (German Federal Foreign Office)
• Caritas Austria (Neighbors in Need)
• Caritas Switzerland (Swiss Development Cooperation)
• Caritas Czech Republic (Czech Republic Ministry of Foreign Affairs)
• Caritas Poland
• Catholic Relief Services
• Ukraine Humanitarian Fund (United Nations Office for the Coordination of Humanitarian Affairs, OCHA)

Coordination with other Caritas Ukraine clusters, including WASH, FSLC, Health, Protection, Education, and Shelter, is also crucial.

• Philip Morris International
• CRS (Bureau of Humanitarian Assistance)
• World Vision International
• CORDAID

Caritas actively cooperates with the Cash Working Group, which unites various humanitarian organizations and agencies working with cash assistance to ensure systematic and coordinated aid, with a priority on avoiding duplication. Specifically, cooperation takes place at the local level with the Dnipro CWG coordination hub.

Areas Requiring Strengthening and Development

Currently, there is a negative trend in reduced funding for MPCA projects (USD 1.5 billion in 2022, USD 1 billion in 2023, and USD 600 million in 2024). Therefore, the following challenges are relevant:

• Ensuring consistent funding for multi-purpose cash assistance (also in cooperation with livelihood modalities). The humanitarian crisis in the country continues, and the needs of the population affected by the war remain unmet across the country, especially in frontline regions of Ukraine.
• Development and support of trained and experienced teams at local Caritas offices across the country that are continuously ready to respond quickly in humanitarian, stabilization, and development phases.

Beneficiary Stories

Assistance for the Tarasov family’s medical treatment under the Basic Needs project

The Tarasov family lives in the village of Rozliv, Volnovakha district. The eldest son, Valeriy, despite his own health issues, does everything he can to care for his bedridden mother and younger brother, who underwent a serious operation. Valeriy was forced to incur a significant debt to pay for his brother’s surgery.

During this challenging time, assistance from Caritas Volnovakha came at the right moment and was crucial. The family received funds for medical treatment and was able to purchase the necessary medications.

Starting a new life — help for internally displaced persons

Last spring, Mykola Oleksandrovych, 66, experienced the horrors of war firsthand. During enemy shelling, he and his family were forced to hide in a basement for a long time, where he sustained shrapnel injuries. He lost everything he had worked for throughout his life. His house was destroyed, and his large farm had to be abandoned.

Mykola and his family were forced to relocate to another village. They were in desperate need of money to meet even their most basic needs, including treatment, as he requires constant medication.

Thanks to Caritas’ assistance, the family received funds that enabled them to buy essential household items and clothing, as well as an additional cash grant for medical treatment, which helped Mykola improve his health.

Cash assistance as a guarantee of a warm winter

Lidiya, a resident of Toretsk, Sloviansk community, is an elderly woman living alone. Thanks to the funds she received, she was able to purchase fuel for heating her home and pay off her utility debts.

Contact Information
Vasyl Zhgun — Head of the MPCA Program (vzhhun@caritas.ua)