What is Endowment ? here some definition of it :
Endowment is 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. Or
| An endowment is a charitable donation in the form of real property, assets, or funds, usually given to an institution to support a specific goal. Common endowment recipients are libraries, universities, and hospitals. Generally, an endowment is quite large, and an institution often receives multiple endowments which are pooled in a common fund. Typically, the principal of the endowment is invested, and the interest is used to fund projects. |
Traditionally, endowment funds are used for major projects, such as constructing new buildings, funding an endowed professorship or chair, or sponsoring a lecture series. Often, the donors who gifted the endowment may placer restrictions on how it shall be used, stipulating, for example, that their endowment funds must be used to build a new university library. Typically, donors to private institutions are linked with the institution in some way; university alumni, for example, frequently donate sums to their alma maters to improve them.
In addition to private institutions such as universities and colleges, endowments are also used to create national funds, such as the National Endowment for the Arts and the National Endowment for the Humanities. These endowment funds are maintained to support artists and innovators in reaching their goals, and funds are typically disbursed in the form of grants. These types of endowments enrich society as a whole, and will benefit anyone who is willing to write a grant to apply for funds. In some cases, governments support national endowments to demonstrate a commitment to culture.
In addition to private institutions such as universities and colleges, endowments are also used to create national funds, such as the National Endowment for the Arts and the National Endowment for the Humanities. These endowment funds are maintained to support artists and innovators in reaching their goals, and funds are typically disbursed in the form of grants. These types of endowments enrich society as a whole, and will benefit anyone who is willing to write a grant to apply for funds. In some cases, governments support national endowments to demonstrate a commitment to culture.
Exemple :
The university has the largest endowment in the higher education community.
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