Setting up an Endowment Fund

An endowment means assets are invested for the long term to provide a source of income (typically an annual payment) from the earnings of the investments. The earnings are the result of the compounded effect of interest, dividends, and capital appreciation. Endowments are designed to last forever, since the principal investment is never spent.

Nonprofit organizations can establish endowment funds through LBCF from bequests and/or large donations received from donors.

Individual donors can set up an endowment fund to benefit their favorite charity or to create a scholarship fund that annually awards scholarships to individual students based on the criteria the donor outlines.