owned by an institution and invested to produce income to support the operation of the institution. Many educational institutions use a portion of their endowment income for financial aid. A school with a larger ratio of endowment per student is more likely to give larger financial aid packages.

Funds whose principal is nonexpendable (true endowment) and that are intended to be invested to provide earnings for institutional use. Also includes term endowment and funds functioning as endowment.

Those funds that have been given to the State of Arizona and held in perpetual trust, the investment of which is made on behalf of designated beneficiaries. Composed primarily of proceeds from sales of donated land, only interest earned can be deemed expendable by beneficiaries. As the principal investment is to be held in perpetuity, maturities tend to be longer.