A six-step approach for evaluating the annual costs of NGO-implemented programs to support orphans and vulnerable children

Background: This paper developments a practical, six-step approach that NGOs can incorporate into routine operations to evaluate their costs of program implementation. The approach is applied to the Community-Based Care for Orphans and Vulnerable Children Program implemented by BIDII and Christian Aid in Eastern Province of Kenya for 2009.

Methodology/Principal Findings: For each step, a short summary and general explanation is provided along with the concrete application to the BIDII program. A set of practical recommendations are provided for incorporating this approach into routine practice by NGOs during program implementation. Based on the analysis in this report, direct financial cost was $21 per OVC per year (staff, local travel, and payments for OVC educational expenses). In addition, headquarters contributed resources not charged to the project, marshaled 14,000-15,000 days of volunteer time, and used equipment purchased in earlier years. The imputed value of these additional inputs was $22 per OVC, for a total annual cost of $43 per OVC. The cost profile for the project provides a detailed breakdown of these costs into primary input categories.

Conclusions/Significance: NGOs implementing OVC programs (and other public health programs) can organize themselves for data collection and documentation prospectively during the implementation of their OVC programs so that costing analyses become routine practice to inform program implementation rather than a painful and flawed retrospective activity. Such information is required if the costs and outcomes achieved by OVC programs will be clearly documented and compared across OVC programs and other types of programs (prevention, treatment).