What is an Endowment?
An endowment is a gift of cash or assets where the donor specifies that, either in perpetuity or for a long period:
- the gift is to be invested; and
- all or part of the income arising from the gift is to be applied for a stated purpose.
If a gift of this type is made to the University, a charitable trust is established. Before explaining matters associated with charitable trusts, it is useful to mention briefly some general issues associated with trusts.