It is essential because it:

• Ensures operational continuity, avoiding cash shortages that could halt activities.

• Reduces risks, such as theft, misallocation, or overspending.

• Supports informed decision-making, as leadership knows the exact financial situation at any time.

• Builds donor confidence, showing the organisation manages funds responsibly.

• Improves negotiating power, by paying suppliers on time or negotiating better terms.

Without active treasury management, even well-funded organisations can face crises, such as failing to pay staff or suppliers or missing key program deadlines.