Endowment Funds are created to receive donations destined to support causes or specific organizations. In general, the resources received stay in the fund, in financial investments, and only the earnings are periodically withdrawn to fund the operation or growth of social, educational, health, environmental, cultural organizations and other public interest causes – partially or wholly.
This is an important mechanism for the preservation of the donation, and guarantees resources will be available in the long run for public interest causes.
For decades endowment have been a mechanism that are increasingly used and successful for the mobilization of philanthropic resources in many countries. In Brazil, IDIS leads an advocacy initiative, working in network to promote the development of endowment funds. The Brazilian Endowment Coalition is a multisectoral group composed by over 70 members, among organizations, companies and people who support the regulation of endowment funds in the country. In January 2019, the group accomplished precisely that through Law 13,800/2019, known as the Endowment Fund Law, but we still seek the deepening of more specific matters.