Talk:Wikimedia Foundation elections/Board elections/2011/Candidates/Questions/1
Endowment fund[edit]
The question is a little unclear, but for the benefit of those with no financial experience I think he probalby is referring to the common financial instrument used by large institutions like universities - where a very large base capital is invested to generate significant income. And the day-to-day operating costs are siphoned off from that to fund the institution. So for example Havard have a few billion dollars endowment fund and take so many million dollars a year from it to fund the university. (given that the other part of the question deals with financial insurance I suspect this is what Abbasjnr refers to). --ErrantX 18:39, 14 May 2011 (UTC)
- Ah, that does help. Thanks. — Coren (talk) / (en-wiki) 19:34, 14 May 2011 (UTC)
- I thought that would be a fund given to the institution as a big donation set aside or limited to specific causes, like an endowed member of faculty. But I could use some clarifications both on what is meant by endowment fund and perhaps on what was meant by financial insurance as well. Harel 19:49, 14 May 2011 (UTC)
- Quite often big donations are given as an endowment, but that is not their only guise :) Basically it is a big sum of money that is restricted in terms of how much can be spent away. The intent being that you invest the bulk of it, and with the profits you fund your operation - theoretically indefinitely. It is a form of financial insurance; on the basis that you always have a source of funds. --ErrantX 19:57, 14 May 2011 (UTC)
- I thought that would be a fund given to the institution as a big donation set aside or limited to specific causes, like an endowed member of faculty. But I could use some clarifications both on what is meant by endowment fund and perhaps on what was meant by financial insurance as well. Harel 19:49, 14 May 2011 (UTC)
Because gardens were mentioned. :) Nemo 00:51, 11 June 2011 (UTC)