university endowments

University endowments are funds made up of donations and investments that support a school's long-term financial health. These funds are invested to generate income, which is then used to fund scholarships, faculty, research, and campus facilities. The principal amount usually remains intact, while the investment returns sustain the university's activities over time. Endowments help ensure stability and continued growth, especially during economic fluctuations, and can significantly contribute to a university's ability to provide quality education and resources for students and staff.