The Development Source
“Value for Money” (VfM) is defined as the optimal use of resources to achieve intended outcomes. VfM is not a new concept, but more government agencies are using the concept to evaluate grant proposals. Using VfM is one way that you can use to make your grant proposals more competitive.
VfM consists of 3Es:
As you see, VfM is not just about cutting costs or providing the lowest possible price. VfM is about how short-term tangibles produce long-term results. VfM is about five sequential factors: input, process, output, outcome, and impact.
Discussing VfM should not replace the standard management and financial topics you address in your grant proposal. Instead, VfM is something you can add as part of your management and budgetary controls. VfM will help demonstrate to reviewers that you are serious about providing good value at the appropriate cost.
Below are the topics you should discuss when you addressing VfM:
Using VfM will show reviewers that you value transparency and scrutiny in your financial processes. It also will increase their confidence that you will provide a government agency with best value and that you are highly likely to achieve your intended results.