
Endowment
An endowment is a fund created by an organization, such as a university or charity, where the principal amount is invested to generate income. This income helps support the organization's ongoing expenses, programs, or projects. The original principal usually remains intact, allowing the organization to benefit from investment growth over time while preserving its core assets. Endowments provide financial stability and sustainability, ensuring the organization can continue its mission regardless of fluctuating external factors.