Definition Of Endowment


Simple Definition:

An endowment is a sum of money or property that is given to an organization or institution, with the intention that the organization uses the income generated from the money or property to support its activities.

For example:

  • A wealthy donor [a person who donates something] may provide an endowment of $1 million to a university, and the university can use the yearly interest [money earned from investments] generated from that money to fund scholarships [financial aid or grants given to students to assist them in pursuing their education] for students.

Very Simple Definition:

An endowment is a gift of money or property used to support an organization.

For example:

  • A person gives a large sum of money to a school so they can help students pay for books and supplies.

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