An endowment fund is a financial asset, typically established by a nonprofit organization, that is invested to generate income over time. The principal amount is usually kept intact, while the earnings are used to support the organization's activities, such as scholarships, research, or community programs. This helps ensure long-term financial stability. Endowment funds are often associated with institutions like universities and charities. They can be funded through donations from individuals, corporations, or foundations. The goal is to create a sustainable source of funding that can support the organization's mission for many years to come.