Endowment Fund

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What is an 'Endowment Fund'


BREAKING DOWN 'Endowment Fund'

There are three main components to the typical endowment fund:

2. Withdrawal Policy: This policy determines the amount that the institution can take from the endowment fund at each period and is usually based on the institution's needs as well as the amount remaining in the fund.
3. Fund Usage Policy: This policy ensures that the money from the endowment fund is being used properly and for the purposes set out by the fund.

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