What Are Encumbered Funds?

Answer

Encumbered funds are funds already committed to something. Business and non profits both often deal with encumbered funds. Business generally deal with the situation when trying to find finances to purchase something. If the funds are encumbered they can only access the specific amount of money assigned to purchase the item. Churches most often deal with encumbered funds when accepting a donation that comes with a stipulation as to what donated funds must be used for.
Q&A Related to "What Are Encumbered Funds?"
1. To put a heavy load on; burden: 2. To hinder or impede the action or performance of: 3. To burden with legal or financial obligations.
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