Endowment funds are assets that provide support to the school in perpetuity.
The endowment funds are invested and a portion of the investment return provides support to the school's operations. When a donor specifies a gift as endowment, the endowment is considered pure endowment. The board of trustees of the school can decide to designate unrestricted funds as endowment. These funds, known as board designated endowments, remain in the endowment until the board decides to change the designation. Often, donors give money to the school's endowment and specify that the income, or some portion of the total return, from the gift be used to support a specific function in the school.