What is the Endowment Fund?

The Endowment Fund is a special account that is set up to generate income to be used for a specific purpose. The resources of this type are sometimes established to create a flow of income to finance research projects, provide scholarships to qualified candidates, or even supply assistance to individuals who apply for financial assistance fund. The Endowment Fund is designed to function permanently, which allows you to provide financial support for a long time.

One of the distinguishing characteristics of the Endowment Fund is that the amount of principal contained in the account is not paid for any reason. This principal amount is invested in a way that creates a constant return; It is this return that is actually used to provide personal and institutional support to any entity that meets the provisions that control the process of paying for the fund. Since the amount of payback may vary over time, the actual amount of paycheck made by the fund will reflect the amount of surgeontangent funds that are currently available.

A common example of the Endowment Fund is associated with education. For individuals and foundations, it is not unusual to set up funds that help the necessary students pay the cost of participating in the university, technical schools or other institutions offering specialized training in the area. The fund can provide scholarships or be set up to provide one -off grants to individuals who are entitled to assistance. In general, grants can be reused for each calendar year.

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model of the Endowment Fund is also a common means of providing financial support to research organizations. For example, an organization that conducts research to find a medicine on specific health problems associated with the support of research efforts. As long as the organization complies with the contractual conditions established by the Endowment Fund, it is possible to continue receiving financialSupport, based on the return that the fund realizes from the investment of principal in every financial period.

In many countries around the world, it is possible to set up an Endowment Fund for almost any purpose. Religious organizations with membership in multiple countries sometimes create endowment funds that allow the necessary members to participate in distant assemblies such as conventions and conferences, from time to time. In the United States, many public broadcasting networks are funded by regular grants from the Endowment Funds established by businesses and individuals. The supplied professors at a number of universities are financed at least partially by contributions from one or more foundations through the Endowment Funds.