An endowment is a financial asset, often in the form of a donation, that is invested to generate income for a specific purpose. Many universities, like Harvard University, have endowments that help fund scholarships, research, and campus improvements. The principal amount is usually kept intact, while the earnings are used to support various initiatives. Endowments can also be found in non-profit organizations and foundations, providing them with a stable source of funding. By carefully managing these funds, organizations can ensure long-term financial health and sustainability, allowing them to focus on their mission and serve their communities effectively.