Endowment Funds are created to make a significant investment and commitment to the future of a parish, school or organization. It ensures sustainability for the organization and allows their mission to be supported in perpetuity.
Endowment Fund assets grow over time as a result of the interest they earn. Unlike a Donor-Advised Fund, Endowment Funds are not meant to have consistent withdrawals. In fact, their purpose is the opposite. These funds are most successful when their initial asset, or corpus, remains untouched. This allows for the corpus to grow over time, leaving the interest earned each year to be used for the Endowment’s intended purpose.
Endowments are also a great way to let your organization’s donors know that you’re thinking about the long-term health of the organization and working to build assets for its future.