Value for money
Value for money (VfM) is about maximising the contribution of financial resources to sustainable, effective, and equitable change for the most vulnerable and marginalised. UK Aid Direct’s approach follows the Foreign, Commonwealth & Development Office’s (FCDO’s) framework of the four ‘E’s of VfM:
- Economy: are project inputs of the appropriate quality at the right price?
- Efficiency: how well are inputs being converted into outputs (‘Spending well’).
- Effectiveness: are the outputs produced by an intervention having the intended effect? (‘Spending wisely’).
- Equity: how fairly are the benefits distributed? To what extent is the intervention supporting marginalised groups? (‘Spending fairly’).
Resources on this topic from UK Aid Direct and other key sources can be found below.
A UK Aid Direct guide to Value for Money
Understand value for money (VfM) as a tool in project management, how to use it in project implementation, and the terms relating to VfM in UK Aid Direct guidance.
Case study – Value for Money from Women for Women International
Women for Women International's case study looks at how they used VfM to improve the impact of a three year rights and livelihoods project in Nigeria.
The UK’s Foreign, Commonwealth & Development Office (FCDO) guidance on the 4E’s of Value for Money
This updated guide explains FCDO’s approach to VfM and the inclusion of the 4th E - equity – in how a comprehensive VfM analysis should be undertaken in interventions.