What is an endowment?

An endowment fund is a permanent fund created in perpetuity, of which the principle is never invaded. The principle is the initial gift used to establish the fund and subsequent gifts. The funds of the Foundation grow through sound investment policies and from additional gifts. The income is used annually, in accordance with the Distribution or Spending Policy of the Foundation, to make grants or scholarships as the donor originally intended when establishing the fund. An endowment fund should not be confused with a savings account, reserve fund or special project fund.