What is endowment meaning?

Endowment refers to a gift of money or property given to an institution or organization that is intended to be invested, with the income generated being used to support the activities or goals of that institution or organization over time.

Endowments can be made by individuals, corporations, or other entities, and often serve to create a source of perpetual funding for a particular cause or mission. Some common examples of organizations that have received significant endowments include universities, museums, and charities.

Endowments are typically managed by professional investment managers, who work to ensure that the funds continue to provide a steady stream of income while also preserving the principal amount of the endowment. The amount of money invested in an endowment can vary widely, with some institutions receiving multi-billion dollar gifts, while smaller charities and organizations may receive much smaller endowments.

Overall, endowments serve as an important tool for institutions and organizations to secure long-term funding for their activities and mission, providing stability and security even in times of economic instability or uncertainty.