What is an Endowment Fund?
An endowment fund is a permanent fund that is invested in Vanderbilt’s endowment. At the end of each quarter, a portion of the endowment’s earnings is “paid out” in support of the area designated as an area of interest by the donor (such as a scholarship or faculty chair). The original gift is preserved so that the donor’s legacy lives in perpetuity.
Washington University’s endowment was begun in 1854 with a gift of $40,000. Through the ongoing generosity of individual donors and the performance of investments through careful planning, the endowment has grown significantly. Endowment gifts are invested and the principal is held in perpetuity. Only a portion of the earnings from the endowment is spent for important purposes determined by the donor in consultation with the University. The income from the endowment provides a steady, predictable source of funds on which the University can make commitments and build its programs. Gifts to the endowment are welcomed by the School of Medicine which has benefited substantially from the generosity of donors. The great strength of the School rests in part on over 800 endowment funds supporting every aspect of the School’s mission. Since endowment gifts are designed to last in perpetuity, they require careful planning and attention to the donors’ objectives and to the priorities of the Schoo
An endowment fund is a permanent, self-sustaining source of funding. Endowment assets are invested. Each year, a portion of the value of the fund is paid out to support the fund’s purpose, and any earnings in excess of this distribution are used to build the fund’s market value. In this way, an endowment fund can grow and provide support for its designated purpose in perpetuity. When you establish an endowment fund, you create a permanent legacy of support for Duke.
