Cash Management Solutions for Non-Profits & Religious Organisations
Optimise cash reserve returns while maintaining liquidity
Make your organisation’s cash reserve work harder with our fuss-free cash management solutions.
Is Your Organisation Holding Idle Cash? Here is How to Make It Work for Your Mission
Non-profits, charities, and religious organisations in Singapore often manage large reserves from donations, grants, endowments, or operating surpluses. These funds are crucial for sustaining operations, funding outreach programmes, and supporting long-term initiatives. However, many organisations leave these funds in low-interest bank accounts, resulting in lost potential income.
By adopting an optimised cash management strategy, non-profits can earn higher returns on reserves while ensuring that funds remain liquid and accessible whenever needed.
Unused Cash Reserves Are Losing Value
Many non-profits and religious organisations store their funds in traditional bank accounts, assuming that it is the safest option. While keeping reserves in a secure account is important, traditional banking solutions offer minimal interest, meaning that funds are not growing in line with inflation.
Common Cash Management Challenges for Non-Profits
- Low-interest bank accounts – Many charities and religious institutions earn less than 0.5% per year on their cash reserves.
- Risk-averse financial strategies – Organisations often hesitate to explore investment opportunities due to concerns over fund security.
- Fixed deposits reduce flexibility – Locking up funds in fixed deposits may provide slightly higher interest, but it limits access to cash when urgent needs arise.
- Unclear financial planning strategies – Many non-profits do not have dedicated financial teams to optimise surplus funds effectively.
- Low-interest bank accounts – Many charities and religious institutions earn less than 0.5% per year on their cash reserves.
- Risk-averse financial strategies – Organisations often hesitate to explore investment opportunities due to concerns over fund security.
- Fixed deposits reduce flexibility – Locking up funds in fixed deposits may provide slightly higher interest, but it limits access to cash when urgent needs arise.
- Unclear financial planning strategies – Many non-profits do not have dedicated financial teams to optimise surplus funds effectively.
While non-profits must prioritise financial security, they also need to explore low-risk strategies that maximise the impact of their funds.
How Non-Profits Can Maximise Their Reserves
Instead of leaving funds in low-interest accounts, non-profits and religious organisations can explore structured cash management solutions that offer higher returns while maintaining full liquidity.
|
Factors |
Cash Management Solutions |
Traditional Bank Deposit |
|
Interest Rate |
Approx. 2-3.5% per year |
Approx. 0.5% per year |
|
Liquidity |
High |
High |
|
Risk Level |
Low |
Low |
|
Access to Funds |
Next-day |
Immediate |
By moving from traditional savings accounts to structured cash management, organisations can increase returns on their funds while keeping capital protected. Fixed deposits provide slightly higher yields but restrict liquidity. A structured cash management solution ensures that funds are earning passive income while remaining accessible.
How Cash Management Works for Non-Profits
To optimise reserves while maintaining accessibility, non-profits can follow this structured approach.
- Assess financial needs. Determine how much of the organisation’s reserves need to remain liquid for immediate expenses and how much can be allocated for higher-yield strategies.
- Deposit excess funds. Move idle reserves into a structured cash management solution designed for capital preservation.
- Earn competitive interest. Gain returns higher than traditional savings accounts while ensuring security.
- Maintain full liquidity. Withdraw funds whenever needed, with next-day access for financial flexibility.
- Assess financial needs. Determine how much of the organisation’s reserves need to remain liquid for immediate expenses and how much can be allocated for higher-yield strategies.
- Deposit excess funds. Move idle reserves into a structured cash management solution designed for capital preservation.
- Earn competitive interest. Gain returns higher than traditional savings accounts while ensuring security.
- Maintain full liquidity. Withdraw funds whenever needed, with next-day access for financial flexibility.
By using this strategy, non-profits and religious organisations can earn passive income on their reserves while keeping funds safe.
Who Can Benefit from Optimised Cash Management?
Many types of organisations maintain significant cash reserves and can benefit from structured cash management.
Charities and foundations
Organisations that receive large donation reserves can grow their funds to support more initiatives.
Religious organisations
Churches, temples, mosques, and other faith-based groups often manage tithes, offerings, and operational reserves. Optimising these funds can support community programmes and facility maintenance.
Social service agencies and NGOs
Many NGOs receive government grants and public donations that need to be carefully managed to sustain long-term projects.
For non-profits and religious organisations, earning higher returns on reserves allows them to extend their impact and fund more initiatives.
Steps to Get Started with Cash Optimisation
Schedule a free consultation
Speak with a financial expert to assess the organisation’s cash flow needs.
Receive a customised financial strategy
Get a tailored plan based on reserve size and liquidity requirements.
Start earning higher interest/yield
Implement the recommended approach to grow reserves without taking unnecessary risks.
This strategy ensures that non-profits and religious organisations maximise their financial potential while safeguarding funds for future use.
Take the First Step Towards Smarter Cash Management for Your Organisation
A non-profit’s cash reserves should not sit idle in low-interest bank accounts. By adopting an optimised cash management strategy, organisations can earn higher returns while ensuring liquidity for operational needs and future projects.
To learn more about how your organisation can improve its financial sustainability, schedule a free consultation today.