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Financial endowment - Wikipedia, the free encyclopedia
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Financial endowment
From Wikipedia, the free encyclopedia
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A financial endowment is a
transfer of
money or
property donated to an
institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a
public charity,
private foundation, or
trust.
Among the institutions that commonly manage an endowment are: academic institutions (e.g.,
colleges,
universities,
private schools), cultural institutions (e.g., museums, libraries, theaters, hospitals) and religious establishments.
An endowment may come with stipulations regarding its usage. In some circumstances an endowment may be required to be spent in a certain way or alternatively
invested, with the
principal to remain intact in perpetuity or for a defined time period. This allows for the donation to have an impact over a longer period of time than if it were spent all at once.
Contents
College and university endowments
Academic institutions such as colleges and universities will frequently control an endowment fund that funds a portion of the operating or capital requirements of the institution. In addition to a general endowment fund, each university may also control a number of restricted endowments that are intended to fund specific areas within the institution. The most com...
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