What is an endowment?

Endowments are financial investment vehicles designed to withstand economic instabilities through sensible investing practices. An endowment fund is a long-term investment fund made up of contributions that continue to grow. At the same time, a percentage of the earnings is distributed each year to benefit the named nonprofit organization or cause. Since the fund's principle is untouched, this fund is guaranteed to last perpetually and will safeguard against unpredictable future donor-giving and economic hardships. The perspective of holding an endowment is very long-term as these are funds given in perpetuity to support the fund or organization's mission.