Endowment

A financial asset donation made to a non-profit group or institution in the form of investment funds or other property that has a stated purpose at the bequest of the donor. Most endowments are designed to keep the principal amount intact while using the investment income from dividends for charitable efforts.

Endowments provide ongoing benefits for those that receive them by earning a market rate of interest while keeping the core endowment principal intact to fund future years of scholarships, or whatever efforts the donor sought to fund. In some cases, a certain percentage of the assets are allowed to be used each year, so the amount pulled out of the endowment could be a combination of interest income and principal. The ratio of principal to income would change year to year based on prevailing market rates.


Investment dictionary. . 2012.

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  • 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

  • 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 — may refer to many things:Finance*Financial endowment; relating to funds or property donated to institutions or individuals *Endowment (Life insurance); payment of the face value of a life insurance policy, usually at age 98 120 *Endowment… …   Wikipedia

  • 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 — [n1] large gift award, benefaction, benefit, bequest, bestowal, boon, bounty, dispensation, donation, fund, funding, gifting, grant, gratuity, income, inheritance, largess, legacy, nest egg, pension, presentation, property, provision, revenue,… …   New thesaurus

  • endowment — mid 15c., “action of endowing,” from ENDOW (Cf. endow) + MENT (Cf. ment). Meaning “property with which an institution or person is endowed” is from 1590s; that of “gift, power, advantage” is early 17c …   Etymology dictionary

  • endowment — ► NOUN 1) the action of endowing. 2) a quality or ability with which a person is endowed. 3) an income or form of property endowed. 4) (before another noun ) denoting a form of life insurance involving payment of a fixed sum to the insured person …   English terms dictionary

  • endowment — [en dou′mənt, indou′mənt] n. [ME endouement] 1. the act of endowing 2. that with which something is endowed; specif., any bequest or gift that provides an income for an institution or person 3. a gift of nature; inherent talent, ability, quality …   English World dictionary

  • endowment — Funds or property that are donated with either a temporary or permanent restriction as to the use of principal. American Banker Glossary Gift of money or property to a specified institution for a specified purpose. Bloomberg Financial Dictionary… …   Financial and business terms

  • endowment — [[t]ɪnda͟ʊmənt[/t]] endowments 1) N COUNT An endowment is a gift of money that is made to an institution or community in order to provide it with an annual income. The company revived the finances of the Oxford Union with a generous ₤1m endowment …   English dictionary

  • endowment — UK [ɪnˈdaʊmənt] / US noun Word forms endowment : singular endowment plural endowments 1) a) [uncountable] the act of giving money to a school, hospital, or other institution the endowment of a Professorship at Oxford b) [countable] an amount of… …   English dictionary

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