Endowment (funding)

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With assets of around US $ 40 billion, Harvard University currently (2019) has one of the largest endowments in the world.

Under Endowment ( Engl. For "initial endowment") refers to one in the Anglo-Saxon legal widespread form of financing non-profit organizations. The institution receives an initial capital ( principal , corpus ) - money or real estate - which it is supposed to invest profitably and which can later be continuously increased from other sources as required. The facility is to finance its operation from the return .

Endowments are common in the establishment of public and non-commercial private universities , but also in the establishment of cultural (museums, theaters, libraries, etc.), service (hospitals, nursing homes, etc.) and religious institutions (churches, synagogues, Mosques, etc.).

Endowment vs. Foundation, endowment

While foundations have to manage assets that have been given once and are no longer topped up afterwards, endowments can constantly raise new funds. While foundations are set up by an individual or a family, endowments are public organizations to which a large number of people contribute financially. Unlike endowments, in order to maintain their tax exemption, foundations in English-speaking countries are obliged to spend at least 5% of their assets annually.

history

The first proven endowment in history was established by the Roman Emperor Marcus Aurelius in 176, in order to finance a number of philosophical chairs in Athens . The oldest endowment still in existence today was set up by King Henry VIII of England in 1540 in order to finance five chairs at the University of Cambridge .

In the North American colonies or in the United States , where endowment is now the typical form of university funding, Harvard (1636) was the first university to be founded with endowment. Numerous others followed, and on the basis of the Morrill laws (1862, 1890), the land-grant universities were created from 1863 on , which have since formed the core of the public universities.

See also

literature

  • Lawrence E. Kochard, Cathleen M. Rittereiser: Foundation & Endowment Investing . Wiley, 2008, ISBN 978-0-470-12233-4 .

Individual evidence

  1. ↑ Harvard's endowment is worth $ 40 billion — here's how it's spent. Retrieved December 5, 2019 .
  2. ^ Endowments. Retrieved December 5, 2019 .
  3. ^ "Foundation & Endowment Investing" by Lawrence E. Kochard and Cathleen M. Rittereiser. Retrieved December 5, 2019 .
  4. ^ John Marenbon: Medieval Philosophy: An Historical and Philosophical Introduction . Routledge, London, New York 2007, ISBN 978-0-415-28112-6 , pp. 25 ( limited preview in Google Book search).
  5. ^ University of Cambridge: About the University: Sixteenth century. Retrieved December 5, 2019 .
  6. ^ John Willis Clark: Endowments of the University of Cambridge . Cambridge University Press, Cambridge 1904, pp. 153 ( limited preview in Google Book search).