>OK, with that change, this code:

use TipData
>
>declare @SQL varchar(max), @Columns VARCHAR(max), @AmendmentNumber varchar(7)
>set @AmendmentNumber = '2014.01'
>
>set @columns = stuff((
>select  ', ' + quotename(FundType) 
>FROM ( 
>SELECT FundType from TIP_AmendmentProposedFunding P 
>WHERE AmendmentNumber =  @AmendmentNumber 
>UNION
>SELECT FundType FROM TIP_AmendmentApprovedFunding 
>WHERE AmendmentNumber =  @AmendmentNumber 
>) S
>ORDER BY FundType 
>FOR XML PATH('')), 1,2,'')
>--FOR XML PATH(''),type).value('.', 'varchar(30)'), 1,2,'') 
>-- type and value were used in case the FundType contained some characters that may choke XML
>
>
>-- list of new columns
>
>set @SQL = 
>';with cte as (
>select coalesce(p.amendmentnumber, a.amendmentnumber) as AmendmentNumber,
>d.ItemNumber,
>coalesce(p.tipid, a.tipid) as TipID,
>coalesce(p.fundtype, a.fundtype) as FundType,
>coalesce(p.AMOUNT,0) - coalesce(A.Amount,0) as NET 
>FROM (SELECT AmendmentNumber, FundType, TipId, SUM(Amount) as Amount
>FROM TIP_AmendmentProposedFunding WHERE AmendmentNumber =  @AmendmentNumber 
>GROUP BY AmendmentNumber, FundType, TipId  ) P 
>full outer join (SELECT AmendmentNumber, FundType, TipId, SUM(Amount) as Amount
>FROM  TIP_AmendmentApprovedFunding WHERE AmendmentNumber =  @AmendmentNumber 
>GROUP BY AmendmentNumber, FundType, TipID) A 
>on P.TipID = a.TipID and p.AmendmentNumber = a.AmendmentNumber and p.FundType = a.fundtype
>full join TIP_AmendmentDetails d 
>ON d.AmendmentNumber = p.amendmentnumber and d.TipID = p.tipid
>  -- do you need that number only - if yes, add this also into derived tables
>)
>
>SELECT * FROM cte PIVOT (sum(NET) FOR FundType IN (' + @Columns + ')) pvt'
>
>--print @Columns; -- examine the list of generated fund types
>PRINT @SQL; -- examine the SQL
>
>execute sp_ExecuteSQL @SQL, N'@AmendmentNumber  varchar(7)',  @AmendmentNumber ;

>produces this error.
>

>Msg 214, Level 16, State 2, Procedure sp_executesql, Line 1
>Procedure expects parameter '@statement' of type 'ntext/nchar/nvarchar'.

So, can you read and understand what does this message tell you?

I can explain, but I hope you'll figure this little detail yourself.