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What is an endowment?

Endowments are the lifeblood of an institution. They provide an ongoing source of revenue for student scholarships and other campus priorities. Endowed funds are invested, rather than used as cash for immediate needs.

An endowment can be designated for a specific purpose, such as faculty development or scholarships. The gift to create the endowment can be made from cash, stock, life insurance, real estate or other assets. The gift is invested and only the earnings from the gift are used each year for the purpose designated by the donor.

Why are endowments important?

Since the capital cannot be used, the income generated from an endowment is an important source of revenue. Endowed funds create a foundation for fiscal growth and stability, while generating a reliable portion of income for scholarships and academic programs.

Endowments are created for many uses and universities with substantial endowments enjoy strong academic reputations and are able to attract the finest professors, maintain the best libraries and facilities. Prospective students will note the improvements that endowed funds provide when assessing an institution. Endowments provide the financial stability to weather the ups and downs of the economy.

How to create a named endowment:

Donors make a gift of $25,000 or pledge payments over 5 years to create the permanent investment. Many Concordia donors establish endowments and fund them through their estate gifts.

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