What is an Endowment?

An endowment is a permanent fund developed to provide earnings for a described purpose. The initial gift of principal into an endowment can be thought of as a seed that, when planted, begins to grow and produce fruit. These earnings can be gathered and distributed, while allowing the tree to continue growing and producing more fruit.

Contributions to an endowment are irrevocable and become assets of the foundation to which it is donated. Contributions to a non-endowed fund are irrevocable and remain with the foundation based upon the agreement that developed the fund. Endowed funds are not intended to replace all fund raising efforts, but can enable an organization to prepare for difficult economic situations and/or provide a steady stream of funding to enable them to better plan activities and solve problems more efficiently.

In Southwest Colorado, there are several private endowment funds, among them the Fort Lewis College Foundation, Mercy Medical Center Foundation and School District 9-R’s Foundation for Educational Excellence, among others. These foundations allow gifts to be made to their particular cause. The Community Foundation Serving Southwest Colorado was developed not to compete with existing foundations, but to capture gifts that might be made by a donor outside the missions of these private foundations.