Endowment Fund

An investment fund set up by an institution in which regular withdrawals from the invested capital are used for ongoing operations or other specified purposes. Endowment funds are often used by nonprofits, universities, hospitals and churches. They are funded by donations, which are tax deductible for donors.

There are three main components to the typical endowment fund:

1. Investment Policy: This policy dictates the types of investments the manager can make and how aggressive he or she can be in meeting return targets.
2. Withdrawal Policy: This policy determines the amount that the institution can take from the endowment fund at each period and is usually based on the institution's needs as well as the amount remaining in the fund.
3. Fund Usage Policy: This policy ensures that the money from the endowment fund is being used properly and for the purposes set out by the fund.

Investment dictionary. . 2012.

Look at other dictionaries:

  • endowment fund — fund from which sums of money are given …   English contemporary dictionary

  • endowment fund — noun the capital that provides income for an institution • Syn: ↑endowment • Derivationally related forms: ↑endow (for: ↑endowment) • Hypernyms: ↑capital …   Useful english dictionary

  • endowment fund — Fin a mutual fund that supports a nonprofit institution …   The ultimate business dictionary

  • Quantum Endowment Fund — Der Quantum Endowment Fund ist ein Hedgefonds der von George Soros betreut wird. Er erbrachte im Jahr 2009 3,3 Milliarden Dollar Gewinn.[1] Einzelnachweise ↑ Spiegel: George Soros spendet 100 Millionen Dollar Kategorie: Investmentfonds …   Deutsch Wikipedia

  • endowment — en·dow·ment n 1: the act or process of endowing 2: a result or product of endowing: as a: the income of an institution derived from donations the university s ability to attract endowment b: the property (as a fund) donated to an institution or… …   Law dictionary

  • fund — 1 n 1: a sum of money or other resources whose principal or interest is set aside for a specific objective cli·ent security fund: a fund established by each state to compensate clients for losses suffered due to their attorneys misappropriation… …   Law dictionary

  • Endowment Loan — A type of mortgage in which the borrower makes only interest payments on the mortgage, while payments that would have gone to repay the principal are instead funneled into an endowment fund. Under an endowment loan, the borrower does not repay… …   Investment dictionary

  • Endowment — • A property, fund, or revenue permanently appropriated for the support of any person, institution, or object, as a student, professorship, school, hospital Catholic Encyclopedia. Kevin Knight. 2006. Endowment     Endowment …   Catholic encyclopedia

  • Endowment — En*dow ment, n. 1. The act of bestowing a dower, fund, or permanent provision for support. [1913 Webster] 2. That which is bestowed or settled on a person or an institution; property, fund, or revenue permanently appropriated to any object; as,… …   The Collaborative International Dictionary of English

  • Endowment tax — is taxation of endowments. The city of Cambridge, Massachusetts, has proposed taxing MIT on these previously exempt, non profit earnings. [cite web last = He first = Ray C. title = Cambridge Seeks to Tax Earnings on Endowment work = Volume 125,… …   Wikipedia

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