What Are Encumbered Funds?


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?"
Thought I'd improve upon the answer someone else provided below. To clarify the differences between encumber and incumbent: Encumber, is to impede, hamper or burden someone or something
Encumbered means to impede or hinder; hamper; retard: Red tape encu...
encumber: hold back
rural route assigned to a regular postal carrier.
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