Cost-effectiveness analysis: a data-driven approach to doing more good with less

TL;DR: As global challenges grow more complex and resources more constrained, the question is no longer just how much we can do, but how can we feasibly save the most impactful components of lifesaving and lifechanging programming.

The social sector has always had to grapple with constrained resources, but the recent seismic shifts in the funding environment are exerting new pressure on changemakers. Leaders are facing difficult tradeoffs: which programs to continue, which to adapt, and how to continue supporting and serving vulnerable communities. Funders are equally grappling with decisions on which effective programs are at risk and could benefit from an infusion of capital to continue delivering life-saving interventions.

IDinsight’s cost-effectiveness approach is a framework that enables organizations to optimize their impact with constrained resources. Our strategy goes beyond simply cutting costs. We incorporate a cost lens into design and implementation to continuously improve the efficiency of program delivery.

Drawing on our 15 years of global experience as a trusted data, evidence, and AI for good advisor to the sector, IDinsight’s cost analysis methodology is built around hands-on collaboration and practical, data-driven tools that equip leaders of both large institutions and smaller nonprofits to make evidence-based resource choices, design realistic programs for scale, and maximize impact per dollar invested.

IDinsight’s cost-effectiveness services

Here are a selection of services we offer, either individually or as a bundled package, to support data driven cost decisions:

• Cost-effectiveness assessments help leaders evaluate their existing cost data and evidence on program impact. Where data is limited, we develop and implement a cost data collection plan and apply the findings together.
• Lean intervention design helps partners create program variants that sustain impact while reducing cost per participant where possible. We use rapid A/B testing to validate these improvements and translate the findings into clear action plans.
• Ensuring cost-efficiency at scale through scenario modeling, where we assess implementation quality and track cost drivers as program conditions evolve. Our automated systems integrate with operational data to reduce manual work and improve accuracy.
• Technology-enabled targeting leverages AI and machine learning, ensuring resources reach those who benefit most, streamlining operations, and reducing overhead.

IDinsight’s cost analysis approach tailors solutions to diverse operational realities. Our audits and tools can be integrated into existing workflows, and our technology-driven methods are scalable across contexts, from grassroots pilots to large-scale rollouts.

For World Bicycle Relief (WBR), our cost-effectiveness analysis quantified program impact across three outcome areas (livelihoods, education, and health), revealing a 14.7x social return on investment (SROI) for their livelihoods program—significantly outperforming comparable interventions. This analysis enabled WBR to demonstrate competitive cost-effectiveness to funders and identify strategic opportunities to increase impact per dollar, directly informing both resource allocation decisions and funding proposals.

Proven results and continuous improvement

IDinsight’s tools and philosophy encourage experimentation, rapid learning, and program adaptation based on real-time feedback, making us valuable partners for funders seeking assurance that extra resources will be used effectively.

What we can do with your support:

We have identified three promising partners ready to pilot the IDinsight-CEA model—all livelihoods-focused, operating in sub-Saharan Africa, committed to evidence use, and with credible potential to achieve or exceed a 5x SROI :

1. BOMA implements a rigorous two-year poverty graduation program in Kenya. REAP, their core program, is estimated to have an SROI of ~3x. BOMA is currently adapting the model for use with youth in northern Kenya, a promising application of lean design in a new context. BOMA's leadership is deeply committed to cost-effectiveness and responded enthusiastically to our cost advisory engagement model.
2. Pratham International is a global leader in education and livelihoods programming, with over 200,000 youth trained and an 80% placement rate in job-oriented skilling programs. Pratham is interested in evaluating and refining their program design for improved efficiency at scale in Africa.
3. Pact is a global NGO implementing large-scale projects across multiple sectors. Pact is undergoing an internal transformation to embed cost-effectiveness in program design and delivery. They've identified a concrete opportunity to optimize a livelihoods project spanning DRC, Tanzania, and Indonesia.

With $100K: We could pilot end-to-end cost advisory support with one partner, establish proof of concept for our strategic cost optimization approach, and generate insights on realistic and feasible program efficiency improvements.

With $500K: We could engage all three partners simultaneously, plus invest in hiring a dedicated costing expert to strengthen our internal capacity and ensure consistent, high-quality cost data capture that produces clear action items.

With $1M: We could deliver our full strategic cost optimization approach across all three partners, establish a sustainable workforce for a two year pilot phase, and build a replicable framework to support organizations in preserving critical and lifesaving programming in an era of growing constraints. 

While we've been exploring impact evaluations or advisory partnerships with each of these organizations, none are currently funded, nor do we have the capacity to respond to the dozens of other requests we've received for this assistance. In many cases, the expanded cost-effectiveness agenda exceeds the scope of traditional MEL support. Your catalytic funding would allow us to deepen these engagements, fully implement our cost analysis approach, and generate high-impact insights for the future of the development sector.

As global challenges grow more complex and resources more constrained, the question is no longer just how much we can do, but how can we feasibly save the most impactful components of lifesaving and lifechanging programming. We’ve seen firsthand how organizations using cost analysis have unlocked new funding, strengthened accountability, and scaled their impact responsibly. For funders, it signals that their funding will be maximized with intention to help those most in need. It offers practitioners a pathway forward to do good with less.

About IDinsight

IDinsight is a mission-driven global advisory, data analytics, and research organization founded on the belief that rigorous evidence and timely data are not mutually exclusive. We empower global development leaders to maximize their social impact by tailoring a wide range of innovative data and evidence tools, including randomized evaluations and machine learning. This flexible and varied toolkit allows decision-makers to design effective programs, rigorously test what works, and support communities with precision. We partner with governments, multilateral agencies, foundations, and innovative non-profit organizations across Asia and Africa, working in diverse sectors such as agriculture, education, health, governance, sanitation, and financial inclusion. Our team members are located remotely and in offices in Dakar, Lusaka, Manila, Nairobi, New Delhi, and Rabat.

Amid shrinking aid and new tech, IDinsight is meeting global development challenges by embedding evidence, driving efficiency, and powering innovation. Learn more about our strategic vision and implementation plan here.