education endowment funds

An education endowment fund is a financial reserve established to generate ongoing income for educational institutions, such as schools or universities. It is created by accumulating donations and investments, with the principal amount typically kept intact. The earnings from these investments—such as interest, dividends, and capital gains—are used to support the institution’s operational costs, scholarships, research, or other educational initiatives. This structure ensures a stable, sustainable funding source over the long term, helping institutions maintain quality and grow regardless of fluctuations in other revenue streams.