A
financial endowment is a donation of
money or
property to a
nonprofit organization for the ongoing support of that organization. Usually the endowment is structured so that the
principal amount is kept intact while the investment income is available for use, or part of the principal is released each year, which allows for the
donation to have an impact over a longer period than if it were spent all at once. An endowment may come with stipulations regarding its usage.