Definition - What does Endowment mean?
An endowment is a fund of money that is accumulated through donations and exists to provide schools, hospitals, or other organizations with money to use in the future. In the context of the law, organizations who have endowments must use them and also obtain donations in accordance with the law.
Justipedia explains Endowment
Organizations that have endowments commonly invest a portion of the fund. This can help the endowment to build over time. However, a portion of the endowment may also be used to help fund the growth of the organization. For example, a college may use a part of its endowment to build a new gym to help attract prospective students. It is common for alumni to donate money to their former school to help build its endowment.