Definitions for "ENDOWMENT FUND"
A fund whose principal must be maintained inviolate but whose income may be expended. An endowment fund is accounted for as a trust fund.
A special account usually for the benefit of a nonprofit institution such as a school. Funded by private donations, often for a specific purpose.
Assets of a non-profit organization (typically a university or hospital) that is engaged in social service, educational, religious, or charitable activities. Historically, endowment funds have been managed to preserve capital while providing high current income. However, this income is tax-free and regular distribution is not required.