The Endowment

An endowment is a large pool of money or assets that an institution, like a university or charity, invests to generate ongoing income. This income helps support the organization’s work, programs, or operations over the long term. Typically, the principal amount is kept intact, while the returns—like interest, dividends, or capital gains—are used annually. Endowments provide financial stability, enabling institutions to plan and invest in their future, even during economic downturns. Essentially, it acts as a financial foundation, allowing the organization to sustain its mission beyond immediate funding sources.