Endowment Fund
Definition of '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. |
|
Investopedia explains 'Endowment Fund'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. |
Related Definitions
Articles Of Interest
-
Stock School: Student-Managed Investment Plans
Student-managed investment funds offer future investment professionals a chance to manage real money while earning their degrees. -
Deducting Your Donations
Generosity may be its own reward, but some charitable giving also provides personal tax benefits. -
Gifting Your Retirement Assets To Charity
There are several things to consider when it comes to this type of charitable giving. Make sure you're well informed. -
How To Invest Like An Endowment
Historically, Ivy League endowments have had a successful investment strategy. Will it work for you? -
Cut Your Tax Bill With Donor-Advised Funds
Beat the tax man come April 15 by investing in a charity-friendly fund. -
It Is Better To Give AND Receive
You give to benefit others, but there can be perks for you too. -
How do university endowments work?
Endowments represent money or other financial assets that are donated to universities or colleges. The sole intention of the endowment is to invest it, so that the total asset value will yield ... -
Can I donate stock to charity?
Giving stock, instead of cash, as a donation can greatly benefit both parties. You will find that most charities, hospitals, schools and other nonprofit organizations will accept stock as a gift ... -
Trading The Non-Farm Payroll Report
Discover how to trade the NFP report without getting knocked out by the irrational volatility it can create. -
Does the federal government fund any NGOs? Which ones?
A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs are organized on local, national and international levels to serve ...
Free Annual Reports