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Jul 11, 2014

What are Encumbered Funds?

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    Jul 11, 2014

    The funds which are already committed to something are called Encumbered funds. Both business and non profits often deal with encumbered funds. The business generally deals with that situation when trying to find finances to purchase something. They can only access the specific amount of money assigned to purchase the item, if the funds are encumbered. Churches deal with encumbered funds when they accept a donation which comes with a condition as to what donated funds must be used for.

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