Established and accepted by the SABA Board in May 2006
Endowment funds are established to provide income for a specific purpose. A common characteristic of endowments is that the principal is preserved and only the income is dispersed. Endowments are different from restricted donations that do not require the conservation of funds.
There are several types of endowments. The most typical are: Permanent, Term, and Quasi endowments. Permanent endowments are established for perpetuity (e.g., Sidney and Janet Bijou’s Endowment) while Term endowments are intended to operate for a specific length of time. When the agreed terms are over, SABA can use the principal at its discretion. Both Permanent and Term endowments are generally restricted by the donor. Quasi endowments are funds designated by the Board, rather than by the donor.