ENDOWMENT AGREEMENT Meaning and
Definition
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An endowment agreement refers to a legally binding contract or agreement between a donor and a recipient organization or institution, typically a nonprofit or charitable entity. This agreement outlines the terms and conditions governing the donation of a substantial financial gift or asset to establish an endowment fund.
In this context, an endowment fund is a permanent pool of funds that is invested to generate income and provide ongoing financial support for the recipient organization's charitable activities or specific purposes. The endowment agreement serves as a formal document that dictates how the endowment fund will be managed, distributed, and utilized.
The agreement typically specifies the purpose or area of focus for which the endowment fund will be used, such as funding scholarships, research grants, facility maintenance, or programmatic support. It may also include provisions for the investment and distribution of the endowment's earnings.
Endowment agreements often address various important aspects, including the minimum amount of the donation, the duration and purpose of the endowment, and the conditions under which the funds may be utilized. Additionally, the agreement may stipulate guidelines for the management and investment of the endowment, ensuring prudent financial practices for the long-term sustainability of the fund.
Overall, an endowment agreement provides a framework for both the donor and the recipient organization to ensure that the endowment fund is utilized in accordance with the donor's intent and the mission of the recipient organization.
Common Misspellings for ENDOWMENT AGREEMENT
- wndowment agreement
- sndowment agreement
- dndowment agreement
- rndowment agreement
- 4ndowment agreement
- 3ndowment agreement
- ebdowment agreement
- emdowment agreement
- ejdowment agreement
- ehdowment agreement
- ensowment agreement
- enxowment agreement
- encowment agreement
- enfowment agreement
- enrowment agreement
- eneowment agreement
- endiwment agreement
- endkwment agreement
- endlwment agreement
- endpwment agreement
Etymology of ENDOWMENT AGREEMENT
The word "endowment" comes from the Old French word "endouer", meaning "to provide with a dowry" or "to endow". It ultimately traces back to the Latin word "indotāre", which means "to provide with a dowry or property".
"Agreement" derives from the Latin word "adgrēdī", which means "to come to, approach, or undertake". It later evolved into the Old French word "agreement", meaning "arrangement or understanding".
When combined, the term "endowment agreement" refers to a legal contract or arrangement that establishes and regulates the details of an endowment, typically relating to a donation of funds or property to an organization or institution for the purposes of supporting its ongoing activities or objectives.
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