An endowment fund is a permanent fund in your name, in the name of someone you wish to honor, or in a name that is meaningful to you. The endowment fund is established for one or more charitable organizations or purposes. Each year, five percent of the Fund is distributed to the organization specified or within a charitable area that is important to you.
Some people create endowment funds during their lifetimes with appropriate assets so that they can witness firsthand the benefits of their giving. Others create a legacy by establishing endowments that go into effect after their lifetimes in order to ensure that the causes they hold most dear continue to be supported for generations to come.