Investment Analysis and Budget Allocation at Catholic Relief Services
Ioannis Gamvros, Richard Nidel, Siranjeevi Srinivasa Raghavan · INFORMS Journal on Applied Analytics · 2006
Catholic Relief Services, a not-for-profit agency that funds development programs and humanitarian relief efforts throughout the world, faces a challenging budget-allocation problem annually. We developed a mathematical model and a spreadsheet tool that allocates available funds based on the impact these investments will have in different countries. The model ensures a fair allocation to countries in need that is consistent with the agency’s priorities and is simple enough for managers to understand. The agency is using the tool to plan its spending and considers it a success that has greatly improved the planning process.