Disburse

Disburse is a verb meaning to pay out money from a fund, account, or budget to a person, organization, or project. It is used primarily in finance, accounting, government, and nonprofit contexts. The term describes the act of releasing financial resources that have been authorized and documented, as opposed to merely setting aside funds.

Etymology: disburse comes from dis- (apart) and purse, historically implying drawing money from a purse or treasury. The related noun disbursement refers to the act or the amount paid out.

Usage: Disburse is transitive; you disburse funds, not disburse something else. Common examples include a corporation disbursing payroll, a government agency disbursing grant funds, or a law firm disbursing settlement funds. Disbursement records and schedules are critical for budgeting and audits. In practice, disbursements may be made by checks, electronic transfers (such as ACH), wire transfers, or cash, and are tracked in a disbursement journal or ledger.

Noun form and context: The noun disbursement refers to the payment itself or the act of paying, as in “the disbursement of funds totaled $2.3 million.” In accounting and banking, clear documentation, authorization, and recipient details are essential to proper disbursement.

Differences from similar terms: Disburse should not be confused with disperse, which means to spread or scatter people or items rather than to pay money. Proper governance requires accurate classification and recording of each disbursement to maintain financial integrity.