Endowment and Scholarship Giving
Endowed funds may be established to honor individuals, reflect alumni gratitude, express admiration for former professors, and generally assist the college in its mission, (often through the establishment of a new student scholarship).
Further Understand Endowments
An endowment is simply an investment in the future. When charitable gifts are used to establish an endowment, the gift is invested with two goals in consideration: making the principal grow faster than inflation and providing expendable income for the donor's specified purpose. The principal remains untouched, and any income earned above the annual spending amount is reinvested into the fund to keep it healthy and growing.
General Parameters of Endowed Funds
Endowment funds are gifts from donors in which the principle:
- cannot be expended and
- must be invested for income-producing purposes
Income from endowments can be either restricted or unrestricted, based on donor direction. A portion of the income is available to be expended for the agreed upon purpose and a portion may be reinvested to maintain purchasing power. Funds designated by the board to function as endowments may be totally expended at any time at the discretion of the board.
This additional documentation may assist you if you'd like further information on endowed funds:
Interested in Establishing Your Own?
Contact us today to learn how a new endowment or scholarship can impact Rhode Island College for generations to come.