What is an endowment fund?
An endowment fund is a permanent investment, the principal of which is never spent. Only the annual earnings are awarded as grants. The principal remains intact to generate income for charitable purposes in perpetuity. Investing for capital gains as well as additional contributions ensures the growth of the endowment. Within several years, the value of the annual grants can exceed the value of the original gifts.
Just as Albert Einstein once called compound interest the most powerful force in the universe, endowments carry an inherent power to provide for community needs in perpetuity through continued growth. Over time, the amount granted exceeds the original contributions to the fund, while the original gift remains intact. In fact, thanks to responsible investing, the fund
balance continues to increase over time.
There is no better way to serve your community both now and long after your grandchildren’s grandchildren are grown.