Endowment fund is a permanent fund.
The principal is permanently invested. Only the fund income is distributed for the benefit of libraries. Outright lifetime gifts- Contributions to endowment funds during life are the most rewarding. Donors not only have the opportunity to watch their philanthropy at work, but tax advantages are maximized as well. Gifts of appreciated assets - Lifetime gifts of appreciated property, such as stock and real estate, avoid the capital gain tax when contributed directly.