An endowment is created by a donor from a gift, with the majority of endowments having a legal stipulation that the original gift may never be expended and only the earnings can be used. The objective of the endowment fund is to provide both long-term capital growth and a current income stream, which is critical to sustaining and enhancing Country Arts SA’s position
An endowment is a permanent, self-sustaining source of funding. In an endowment fund, the principal is invested in perpetuity and only a portion of the investment’s earnings is used each year to support the fund’s purpose, and any earnings in excess of this distribution are used to build the fund’s market value.