What is the difference between an endowment gift and an expendable gift?
Gifts that create endowment funds are meant to exist in perpetuity, and they are invested for long-term growth. Each year, a portion of the funds earnings is made available in the form of a payout. The payout usually about five percent of the funds value at the beginning of the fiscal year is used for the purposes the donor and Hawaii Community Foundation agreed upon when the gift was made. Expendable gifts are to be spent in their entirety during a specific period of time.
