An endowment is a donation made to the university with the understanding that the "capital" or "principal" amount of the donation will be invested in perpetuity. The principal is invested and only the earnings are spent via what is called a spending allowance.
Key Criteria for Establishing an Endowment
To establish an endowment, we require a letter from the donor(s) stating that they want the contribution to be an endowment and restrict the use of the investment income. Also, the university requires a minimum principal value contribution of $50,000. If that contribution is spread over multiple payments, a signed contribution schedule is required for the account to be considered an endowment.