How Does an Endowment Work?

An endowment is like "the gift that keeps on giving". Endowment contributions received are not spent, but invested. An endowment provides a permanent source of money to fund programs, projects or materials not afforded by the normal tax base. Since the endowment is intended to always be there as an alternative source of funding, only the income earned can be spent. The principal must remain unspent.

Contributions to PRIDE can be designated two different ways:

"Restricted" or "Unrestricted."

Restricted contributions are given by a donor for a specific purpose. For example, a contributor might designate a donation as "restricted" to the purchase of supplies for a particular art project.

Unrestricted donations are donations to the endowment. Those contributions are added to the general fund and cannot be spent, but rather must be invested.

Donations to PRIDE can be cash or in kind, such as grain, stocks, land, or property. Donations can also be memorials.