endowment

play
noun en·dow·ment \in-ˈdau̇-mənt, en-\
Updated on: 26 Jul 2017

Definition of endowment

  1. 1 :  the act or process of endowing

  2. 2 :  something that is endowed; specifically :  the part of an institution's income derived from donations

  3. 3 :  natural capacity, power, or ability a person of great intellectual endowment

Examples of endowment in a Sentence

  1. The hospital's endowment was established by a local family.

  2. The college has a large endowment.

  3. the endowment of a hospital wing

Recent Examples of endowment from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'endowment.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of endowment

15th century


Financial Definition of ENDOWMENT

endowment

What It Is

An endowment is any asset donated to and for the perpetual benefit of a non-profit institution. The donation is usually made with the requirement that the principal remain intact and money earned from investing the principal be used for a specific purpose.

How It Works

In the broadest sense, an endowment is a donation that is given to a non-profit institution on the condition that it is used for the benefit of that organization. Most endowments are designed to provide a permanent source of income by keeping the original amount invested and using the accrued income from dividends for its charitable purpose.

An example of an endowment is a sizable donation to a university on the condition that it is invested and that the proceeds from the investment are used for an annual undergraduate scholarship.

Why It Matters

Endowments are given to non-profit organizations with the intention that they be used to advance the mission of the organization for the long term. Endowments of large institutions, such as major private universities, sometimes become significant players in the financial world due to the significant amount of money that the endowment is investing.


ENDOWMENT Defined for English Language Learners

endowment

play
noun

Definition of endowment for English Language Learners

  • : a large amount of money that has been given to a school, hospital, etc., and that is used to pay for its creation and continuing support

  • : the act of providing money to create or support a school, organization, etc.

  • : a person's natural ability or talent


ENDOWMENT Defined for Kids

endowment

play
noun en·dow·ment \in-ˈdau̇-mənt\

Definition of endowment for Students

  1. 1 :  the act of providing money for support

  2. 2 :  money provided for support a college's endowment


Law Dictionary

endowment

noun en·dow·ment

Legal Definition of endowment

  1. 1 :  the act or process of endowing

  2. 2 :  a result or product of endowing: as a :  the income of an institution derived from donations the university's ability to attract endowment b :  the property (as a fund) donated to an institution or organization that is invested and producing income an endowment to maintain the gallery

  3. 3 :  an endowed organization or institution :  foundation chairwoman of the state's arts endowment

  4. 4 :  endowment insurance



Seen and Heard

What made you want to look up endowment? Please tell us where you read or heard it (including the quote, if possible).

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!

WORD OF THE DAY

an extremely thin woman

Get Word of the Day daily email!

Test Your Vocabulary

Time Traveler Quiz: Which Word Came First?

  • time-traveler-quiz-which-word-came-first
  • Which came first?
True or False

Test your knowledge - and maybe learn something along the way.

TAKE THE QUIZ
Dictionary Devil

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!