Endowed funds are intended to be preserved and grown over time, while non-endowed funds are immediately available for use.
Endowed Funds
The original value of the donation is preserved and invested, and the income and appreciation on the investment is used to fund annual distributions. The principal amount of the donation is never spent, and the fund will continue to provide support indefinitely.
Endowed gifts can be a permanent tribute to the donor. Endowment donations are tax-deductible, but must be itemized to receive a charitable deduction.
Non-Endowed Funds
The funds from a non-endowed gift are available immediately for its intended purpose. Non-endowed funds can be used for long-term grantmaking, and the entire balance of the fund is available for use. Non-endowed funds can be invested or held in cash, and grants can be made of any amount at any time.
