Endowment
Definition of '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. |
|
Investopedia explains 'Endowment'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. |
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. -
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? -
Preparing For A Career As A Portfolio Manager
Find out what it takes to win a spot in one of the most coveted financial careers. -
It Is Better To Give AND Receive
You give to benefit others, but there can be perks for you too. -
The Gatekeepers: Consultants Hold The Key
Institutional investment consultants help match up asset managers with large institutions. -
Profit With Investment Policy Statements
Defining how investments are managed and monitored can help investors meet their goals. -
High-Risk Retirement Portfolio Not Always Taboo
Find out how much risk your portfolio can take and whether your money will last. -
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 ...
Free Annual Reports