Endowment: A Fund for the Future
April 19, 2021
Like many nonprofits, Overlake benefits from endowment funds that have been established by generous community members. While often associated with museums and universities, endowments also help provide financial stability for hospitals and other important community institutions.
How does an endowment work?
An endowment is an investment fund established to provide a yearly sum of money to support an activity. At Overlake, there are endowments to support training for nurses, financial assistance for low-income patients, cancer care and other services. Once established, each fund is carefully managed to produce income that can be used to support the designated activity while keeping the original donation intact. It’s a gift that keeps on giving.
A long-standing strategy
Due to their durability, endowments have long been a popular way to support institutions. Donors may set up endowments and be assured that their generosity will continue to help the organization achieve its mission beyond their lifetimes. The oldest endowment currently in existence was established at Oxford University in the year 1249!
The Trailblazers Fund
Creating a new endowment requires a large initial investment. But, community members who want to invest a smaller amount in an organization may contribute to an existing endowment, helping it grow and produce more income down the road. At Overlake, the Trailblazers Fund for Medical Excellence was established in 2011 by forward-thinking community members, in honor of the men and women who worked tirelessly to open an Eastside hospital in 1960. The fund now provides over $100,000 per year for Overlake programs and services and is open to additional contributions of any size.