Endowment Funds

An endowment is a transfer of money or property donated to an institution, usually with the stipulation that it be invested, and the principal remain intact in perpetuity or for a defined time period. This is to allow the donation to have a greater impact over a long period of time than if it were spent at once.

An endowed scholarship is tuition (and possibly other costs) assistance that is permanently paid for with the revenue of the endowment fund specifically set up for that purpose. It can either be merit based and/ or need-based (which is only awarded to those where the college expense would cause a family financial hardship) depending on the donor’s preferences.