What is an endowment? An endowment is a donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific charitable purpose(s).
How does an endowment work? Endowments are designed to keep the principal amount intact while using the investment income for charitable efforts, specific to the donor’s wish. The total amount of the gift is invested. Each year, only a portion of the income earned is spent while the remainder is added to the principal for growth. In this respect, an endowment is a perpetual gift. The endowed fund will be activated once it reaches $5,000 the minimum level.
Don't miss the current 1:1 match for all endowment gifts, courtesy of the Southeastern California Conference of Seventh-day Adventists.