Financial Endowment Fund

A financial endowment fund is a pool of money, usually held by universities, non-profits, or institutions, that is invested to generate income. The principal amount is kept intact, while the earnings—such as interest or dividends—are used to support the organization’s programs, scholarships, or operations. This structure ensures long-term financial stability and capacity to fund ongoing activities without depleting the core assets. Essentially, it acts as a financial foundation that provides a steady, sustainable source of income to help fulfill the organization’s mission over time.