ENDOWMENT FUNDS

INTRODUCTION:

                       Endowments are sound financial mechanism which is created to provide permanent funds for on-going support of a specified Programmed. Endowment fund could be differentiated from donations in a manner that the money of the Endowment fund can not be spent. Only the interest profit earned from the investment of funds can be spent.

                        The objective of creating Endowment Funds is generally to ensure that the principal amount of the fund stays in tact and that the on-going expenditure of the Project is met out of the interest profit earned. Non money from the Endowment can be spent for any purpose other than the one for which it is specified.