Endowments are financial assets, typically held by institutions like universities and non-profits, that are invested to generate income. The principal amount is usually kept intact, while the earnings are used to support various programs and initiatives. This allows organizations to maintain financial stability and fund their missions over the long term. The management of endowments involves strategic investment decisions to ensure growth and sustainability. Institutions often rely on a mix of asset classes, including stocks, bonds, and alternative investments, to achieve their financial goals. Notable examples of endowments include those held by Harvard University and Yale University, which have significantly impacted their respective institutions' operations and outreach efforts.