We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Accounting

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What are Coffers?

Michael Pollick
By
Updated: May 16, 2024
Views: 12,954
Share

Coffers in the literal sense were strongboxes designed to store and protect tangible valuables such as currency, precious metals, jewelry and deeds from theft. Because linens and clothing were considered nearly as valuable as money before the Industrial Revolution, it would not be unusual for those items to be stored away in coffers as well. The fabled treasure chests buried by rogue pirates would also be considered coffers, and were most likely stolen from their owners intact. Many coffers would have been made from heavy woods augmented with metal strapping, along with forged iron locks and reinforced hinges.

In the financial sense, coffers are the tangible and intangible assets available to a government entity or private concern. While these assets may not be literally stored away in ornate wooden trunks for safekeeping, they are often considered to be a surplus "rainy day fund" outside of the normal funding and budget allocations. A city government, for example, may be very reluctant to tap into its coffers to pay for an unexpected expense. In a sense, a government or business's coffers are viewed as reserves for emergency use only, since they will need to be replenished over time.

Sometimes a natural disaster will cause a local government to tap into its own coffers rather than wait for financial assistance from state or federal agencies. It's not necessarily a question of having the funds available, but more of a question over depleting one's own limited coffers when other alternatives are available. Natural disasters, lowered tax bases or general economic difficulties can all cause local governments to tap into their own coffers before assistance becomes available.

Events outside the normal budget of a government can also require a visit to the coffers. Funding for a war or other military action, especially a protracted war with no foreseeable conclusion, may require a country to tap into its reserves or coffers. Candidates seeking election to an office, particularly on the national level, may view donations from supporters as their campaign coffers. When those funds fall below a certain level, the candidate may feel the need to hold a fundraising event to replenish his or her so-called "war chest" or campaign coffers.

Share
SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Michael Pollick
By Michael Pollick
As a frequent contributor to SmartCapitalMind, Michael Pollick uses his passion for research and writing to cover a wide range of topics. His curiosity drives him to study subjects in-depth, resulting in informative and engaging articles. Prior to becoming a professional writer, Michael honed his skills as an English tutor, poet, voice-over artist, and DJ.
Discussion Comments
Michael Pollick
Michael Pollick
As a frequent contributor to SmartCapitalMind, Michael Pollick uses his passion for research and writing to cover a wide...
Learn more
Share
https://www.smartcapitalmind.com/what-are-coffers.htm
Copy this link
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.