What is the box?

Definition and Examples of an Endowment

An endowment consists of all the donations and funds received by a nonprofit organization specifically to generate investment income. Organizations utilize their investments for their benefit. Endowments are primarily used by large institutions such as universities, colleges, and healthcare organizations. However, they can also be utilized by religious institutions, museums, libraries, and other nonprofit organizations.

How Does an Endowment Work?

Nonprofit organizations like universities and hospitals use endowments to establish assets for the future. Endowments can signal to the community that the organization is stable and will receive financial support for a long time.

Types of Endowments

Advantages of Endowment

Provides a permanent source of funding
Helps the organization innovate and grow
Signals to the community that the organization is robust and well-established
Gives donors a way to leave a lasting legacy

Disadvantages of Endowments

Limits the organization from using the principal balance
The endowment loses its real value over time
Requires time and money to manage the endowment
Endowments can face criticism

Endowments by University

Some of the largest endowments in the United States are held by universities and colleges

Here is an overview of the top 10 universities in the United States by endowment size, according to U.S. News & World Report:

• Harvard University: $40.9 billion
• Yale University: $30.2 billion
• Stanford University: $27.7 billion
• Princeton University: $25.6 billion
• Massachusetts Institute of Technology (MIT): $17.4 billion
• University of Pennsylvania: $14.7 billion
• Texas A&M University: $12.6 billion
• University of Michigan – Ann Arbor: $12.3 billion
• University of Notre Dame: $11.6 billion
• Columbia University: $11.0 billion

Summary

An endowment is the donations and funds that a nonprofit organization receives to generate investment income. Most endowments are used by large institutions such as universities, colleges, and health organizations. However, they can also be used by religious institutions, museums, libraries, and other nonprofit organizations. Endowments are typically established in the form of a trust, private foundation, or public charity.

Sources

• U.S. News & World Report. “10 Universities With the Biggest Endowments.” Accessed Sept. 15, 2021.
• National Council of Nonprofits. “Endowments.” Accessed Sept. 15, 2021.
• Internal Revenue Service. “IRS Exempt Organizations.” Page 46. Accessed Sept. 15, 2021.

Source: https://www.thebalancemoney.com/what-is-an-endowment-5201451

.lwrp .lwrp-list-triple{
width: 32%;
}
.lwrp .lwrp-list-row-container{
display: flex;
justify-content: space-between;
}
.lwrp .lwrp-list-row-container .lwrp-list-item{
width: calc(12% – 20px);
}
.lwrp .lwrp-list-item:not(.lwrp-no-posts-message-item){

}
.lwrp .lwrp-list-item img{
max-width: 100%;
height: auto;
object-fit: cover;
aspect-ratio: 1 / 1;
}
.lwrp .lwrp-list-item.lwrp-empty-list-item{
background: initial !important;
}
.lwrp .lwrp-list-item .lwrp-list-link .lwrp-list-link-title-text,
.lwrp .lwrp-list-item .lwrp-list-no-posts-message{

}@media screen and (max-width: 480px) {
.lwrp.link-whisper-related-posts{

}
.lwrp .lwrp-title{

}.lwrp .lwrp-description{

}
.lwrp .lwrp-list-multi-container{

“`css
flex-direction: column;
}
.lwrp .lwrp-list-multi-container ul.lwrp-list{
margin-top: 0px;
margin-bottom: 0px;
padding-top: 0px;
padding-bottom: 0px;
}
.lwrp .lwrp-list-double,
.lwrp .lwrp-list-triple{
width: 100%;
}
.lwrp .lwrp-list-row-container{
justify-content: initial;
flex-direction: column;
}
.lwrp .lwrp-list-row-container .lwrp-list-item{
width: 100%;
}
.lwrp .lwrp-list-item:not(.lwrp-no-posts-message-item){

}
.lwrp .lwrp-list-item .lwrp-list-link .lwrp-list-link-title-text,
.lwrp .lwrp-list-item .lwrp-list-no-posts-message{

};
}