What is Endowment?

Endowment is a financial donation from a person or a company to a non-profit organization with a purpose. For example somebody donates a large sum of money for a university which will use it for scholarships, or a real estate is donated to a hospital so it can conduct researches. How this usually works is the amount of money donated stays intact and the interest gained is used up. In some cases when the donor approves then a small part of the money can be also given out so for example the scholarships will be paid from the interest gained and the combination of the core sum.