Definition: A fund that is made up of gifts and bequests that are subject to a requirement that the principal be maintained intact and invested to create a source of income for an organization. Donors may set up an endowment to fund a specific interest; and a nonprofit's governing body may set up an endowment. In any case, an endowment requires that the principal remain intact in perpetuity, or for a defined period of time, or until sufficient assets have been accumulated to achieve a designated purpose.
More About Endowments:
- The Basics of Endowments
- How and Why to Make Endowment Fundraising a Priority for Your Nonprofit
- 25 Ways to Market Endowment Gifts for Your Charity
- How to Promote Endowment Giving Through Your Website
Examples: The university has the largest endowment in the higher education community.