What is an Asset Endowments Plan?
A company usually takes out an Asset Endowments Plan when they are wanting to donate financial assets to a non-profit group, individual or institution. Assets can be in the form of property or investment funds and can come with conditions for the stated purpose of the donation.
There are four different types of endowments; unrestricted, term, quasi, and restricted. Generally, in the form of a financial donation, invested funds made from dividends of the original amount are put into charitable endeavours.
How Asset Endowment Plans benefit your business
Having a structured Asset Endowment Plan allows your company to give to the community in an efficient and controlled manner, while giving you many charitable avenues.
Endowments can be a fun and noble way for you to put charitable projects in place and watch them grow. Some of the way you can do this is supporting or setting up charitable funds, scholarships or sponsoring sustainable projects, all good for your company’s self-worth.