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Endowment

en-DOW-ment /ɪnˈdaʊmənt/

nounC1GRESAT

formal

An income or form of property given or bequeathed to an institution or individual, typically one that provides a regular income.

An endowment is a fund of money or other assets donated to an institution (like a university, hospital, or museum) with the stipulation that the principal be invested, and only the investment income (or a portion of it) be spent. This ensures long-term financial stability.

The story behind the word. The word 'endowment' comes from the Old French 'endouer,' meaning 'to provide with a dower.' A dower was a portion of a deceased husband's estate allotted to his widow for her lifetime. The sense evolved to mean providing an institution with a permanent fund, emphasizing the long-term provision of resources.

Word relationships

Fund: More general term for a sum of money, not necessarily permanent or income-generating.
Legacy: Can refer to anything left behind, not just a financial fund.

Depletion: Reduction in the amount of something.
Debt: Money owed.

Commonly confused with

Donation: An endowment is a permanent fund whose principal is invested to generate income; a donation is typically a one-time gift that can be spent immediately.

Word family

endow (verb): To provide with a quality, ability, or asset; to give an income or property to (a person or institution).

Collocations

university endowment
charitable endowment
endowment fund
build an endowment
manage an endowment

Example sentences

"The university's substantial endowment allows it to offer scholarships and fund research for generations to come." Discussing a university's financial stability.
"A generous endowment from a private collector ensures the museum's ability to acquire new art and maintain its collections." Explaining how a museum secures its future.

Memory hook

An 'ENDOWMENT' provides an 'ENDOW'ing (lasting) source of income. Permanent fund

When not to use

Don't use 'endowment' for a one-time donation or a grant for a specific project. It implies a permanent fund designed to generate ongoing income.

Fun facts

Many of the world's oldest universities, like Oxford and Cambridge, have massive endowments that have sustained them for centuries.
The management of endowments is a highly specialized field of finance, focusing on long-term growth and stability.