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What are Endowment Funds?

 What is a University Endowment Fund?


What are Endowment Funds?

 

Ø Endowment Funds are investment funds which derive their fund from donations.

 

Ø Endowment Funds are set up as trusts to fund activities and operations of charitable and non-profit institutions.

 

Ø These charitable and non-profit institutions work for many causes. And for the same they receive donations from the ones who support their cause.

 

Ø These donations are managed by a separate trust known as Endowment Fund, who invests these funds in securities like equities, bonds, etc.

 

Ø Generally, the principal amount is kept intact and is not allowed to be used but the income received from investment is passed on to the institution to fund their cause and operations.

 

What is a University Endowment Fund?

 

·       Here, when the institution is a university, the fund set up in the form of trust will be called University Endowment Fund. It is one of the most common form of Endowment Funds.

 

·       University Endowment Funds receive a huge chunk of their funds from Alumnis.

 

University Endowments Registered in India

 

There are many University Endowments Funds registered as FPIs in India. Some of which are as follows:

 

1) University of Cambridge 

2) University of London

3) Cornell University 

4) The Australian National University 

5) University of California 

6) University of Texas System

 

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