There are three types of endowment funds:
1) True Endowment
2) Term Endowment
3) Quasi Endowment
True endowment funds are funds with respect to which donors have
stipulated that the principal of the gift is to remain intact
and is to be invested for the purpose of generating current and
future income for a specified purpose. Term endowment funds are
like endowment funds, except that all or part of the principal
may be utilized after a stated period of time or upon the occurrence
of a certain event.
The College operates a Quasi Endowment Fund. A Quasi Endowment
Fund represents funds established by the governing board to function
like an Endowment Fund, but which can be terminated by the board
at any time. Both income and principal are expendable.
Use of the word "Endowment" relates to disposition of
the corpus (original principal) of the fund. Income earned from
investment of the principal can be expended, and may be restricted
or unrestricted depending upon the declarations of the donor.