What Is an Endowment? - Definition & Effect


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question 1 of 3

An endowment is, at its most basic level, a _____ set aside to meet a stated goal of the _____.

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1. The steps for giving to an endowment, in order:

2. After the initial gift to the university endowment, who decides on and invests the money?

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About This Quiz & Worksheet

Endowments can have a tremendous effect on college and university finances, allowing them to offer renewable scholarships to students that other schools may not be able to match. Use this quiz and worksheet combination to check your understanding of endowments, including initiation and reception of these gifts.

Quiz & Worksheet Goals

This quiz will test your knowledge of the following:

  • Key terms and definitions
  • Steps involved in giving an endowment
  • Setting endowment stipulations
  • Value of Harvard's endowment
  • Forms of endowments

Skills Practiced

Students taking this quiz will gain practice in these related skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on endowments
  • Defining key concepts - ensure that you can accurately define main terms, such as endowment and invests
  • Knowledge application - use your knowledge to answer questions about how endowments are decided upon and given

Additional Learning

Read the lesson titled What is an Endowment? Definition & Effect to learn more about this topic. The objectives contained in this lesson, quiz and worksheet are:

  • Explain why contracts are necessary when gifting an endowment
  • Discuss how endowment values can be affected by a fluctuating market
  • Explore reasons that a single endowment can continue indefinitely