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Endowment Fund
The PAA establishes endowment funds as part of its financial strategy to ensure its programs can be supported for the foreseeable future.

An endowment is a donation that’s invested to help a nonprofit organization for the long term. Instead of spending the whole gift, the organization invests it and uses the earnings each year to support things like scholarships, programs, or other needs. This helps ensure steady support year after year.

Your contribution to an endowed fund helps create a lasting foundation to support the programs you care about most. Whether you're helping sustain an existing initiative or planting the seed for something new, an endowed gift ensures that the program closest to your heart can continue to grow and make a lasting impact. Donors may choose to create an endowed fund to support or establish a program that reflects their personal passion and values.

Understanding Endowments

An endowment is a financial asset, typically made up of donations, that is invested to generate income for a nonprofit organization. The principal amount (the original donation or "corpus") is usually kept intact, while the investment earnings are used to support the organization’s programs, operations, scholarships, or other designated purposes.

Key features of an endowment:

  • Principal is preserved: The original gift and/or additional gifts are often not spent, ensuring long-term support.

  • Income is used: Only a portion of the earnings (currently 4% annually) is spent to fund specific initiatives.

  • May be restricted: Donors can specify how the earnings from their gift should be used (e.g., for scholarships or grants or other programs).

For more information, contact the PAA at (314) 415-8074 or ParkwayAlumni@ParkwaySchools.net.