endowment fund
Perpetual charitable capital
An endowment fund is a pool of money held by an institution—typically a university, museum, or nonprofit—where the principal remains invested and only the earnings are spent.
This structure provides stable, ongoing income while preserving the original gift: Harvard's endowment fund exceeds fifty billion dollars.
Donors often restrict how the earnings may be used.
- principalChief school administrator
- capital preservationSafeguarding original investment value
- tax exemptionFreedom from governmental levies
- fiduciary dutyObligation to act loyally
- nonprofit organizationMission-focused entity, not profit-seeking
investment portfolio · perpetuity · rainy day · diversification · board of trustees · corpus · educational access · ivy league · asset allocation · scholarship program · charitable foundation · irrevocable trust · charitable trust · stewardship · beneficiary · named · endowed chair · cultural institution
endowment fundoperating budget
Allocated money for daily expenses
working capital · earned income · short-term loan · line of credit · petty cash
endowment funddeficit
Amount still owed
bankruptcy · insolvency · unfunded liabilities · financial distress · destitution