Charity and change in the UK and abroad
Endowment. It sounds kind of vague, and even historic. But did you know endowment is one of the oldest and most impactful ways that people have been leaving a positive legacy in the world?
It’s not just an Islamic or historic concept. Some of the most well recognised institutions in the UK were founded by endowments. Oxford University, with endowments worth over £8 billion. Cambridge University – with over £7 billion in endowments. The National Trust – with over £1.5 billion in endowments.
There are others too that you may not know by name but that bring huge positive change in the UK. The Wellcome Trust uses endowments to research infectious disease, climate and health, and mental health. Garfield Weston Foundation donates around £100 million each year in grants to charities in the UK.
So how does an endowment work?
These endowments in the UK began with wealthy individuals or families who, usually when they passed away, left property, land, or businesses to a trust. They set specific parameters on how the wealth could be used. Typically, they leave an income generating asset – such as land with property for rent – that produces an income. Each year that income can provide scholarships to poor students, funding for health research, or grants to charities.
So it is just for rich people then?
No! Today, anyone can give an endowment, from as little as £10 if you like. The Waqf Fund pools your donations with others and then purchases a secure, ethical asset, such as property to rent.
Each year, we withdraw profits, reinvest a small amount into another property, and use the majority to fund charitable projects, such as supporting livelihood training or climate-smart villages.
Want to learn more about the history of endowments in the UK?
