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 university has the largest endowment in the higher education community.