university endowment

A university endowment is a fund composed of donations and investments that provides financial support to the university over time. The principal amount is usually invested to generate income through stocks, bonds, and other assets. The income earned is used to fund scholarships, faculty positions, research, facilities, and other university needs. The endowment aims to ensure the institution’s long-term financial stability and independence, allowing it to maintain quality education and services regardless of fluctuations in annual funding or external economic conditions.