About the Jack.org Legacy Fund An endowment fund is created when a donor makes a gift to a charity. The donor specifies that the gift is to be invested and only the income earned on that gift may be spent for a specific purpose. The gift amount is referred to as the principal or corpus and is held in a fund that is managed by the charity. Money earned through investing the principal in the market is paid out to the charity annually. An endowment fund is the gift that keeps on giving. Charities like them because the administrative burden is pretty low and they’re great for donors who want to establish a lasting legacy in memory or in honour of a loved one. It’s worth noting that endowments don’t have to be a one-and-done gift. Anyone can contribute to an endowment fund at any time, growing the principal and thus increasing the annual pay out to the charity to support its programs. The biggest hurdle with establishing an endowment fund is the size of the principal. Assuming an average 4% return, a $25,000 principal would pay out just $1,000 per year. Bump that principal up to $1,000,000 and your return increases to $25,000 per year. Note: To establish an endowment fund at Jack.org - the minimum gift is $100,000 (which can be contributed over 4 years). The capital is to remain invested and a minimum of 3.5% of the fund value will be spent each year Questions? Email email@example.com.