What types of endowments are there?

Unrestricted (earnings spent freely), term (principal available after a set period), quasi (board-designated), and restricted (principal kept in perpetuity).

Endowment Calculator

Q: How does an endowment benefit a nonprofit?

It provides reliable, long-term funding so you can plan for future needs, handle surprises, and invest in impact while the principal stays invested.

Q: What payout rate should we choose?

Many organizations target about 4–5% annually to balance current support with long-term growth. Higher payouts increase distributions now but slow future growth.

Q: What assumptions does the calculator use?

The example scenario uses an 8% annual investment return and a 5% annual payout. You can adjust these inputs to test conservative or aggressive strategies.

Q: How can I create an endowment?

Fund it with cash, investments, retirement assets, real estate, personal property, or life insurance. Work with advisors to draft an agreement and set investment and spending policies.

Use this calculator to determine the impact of a nonprofit endowment.

Interactive Endowment Calculator

Endowment Details

Initial Gift Amount ($)

Annual Contribution ($)

Expected Annual Investment Return (%)

Annual Spending Rate (%)

Administrative Fees (%)

Time Period (Years)

Projection Results

Total Contributions $0

Investment Growth $0

Total Distributions $0

Total Admin Fees $0

Final Endowment Value $0

Administrative Fee Impact

Administrative fees reduced your endowment by $0 over 25 years.

Endowment Growth Projection

How To Use The Endowment Calculator

Enter your endowment details

Add your gift amount, contributions and other endowment details.

Include administrative fees

Make sure to include administrative fees if applicable.

View your projection results

See your projected value and fee impact instantly.

Your final endowment value and administrative fee impact will be displayed above.

How Endowments Work

Preserving Principal

Endowments keep the principal intact while investing it to generate earnings.

‍Investment Policy

A board-approved investment policy governs what types of assets the fund holds and how much risk is acceptable.‍

Withdrawal Policy

Many nonprofits limit annual withdrawals to around 4–5%, balancing current needs with long-term growth.

‍Types of Endowments

Unrestricted funds can be spent at the organization’s discretion; term endowments allow principal use after a set period; quasi endowments are board-designated funds; and restricted endowments require the principal to remain intact.

Benefits of Building an Endowment

Financial sustainability

An endowment provides reliable, ongoing support for operations and special projects.

‍Generational impact

The fund’s principal can grow and continue making grants or distributions long after the initial gift.

‍Investment growth

With a disciplined investment approach, an endowment can pay out grants while still increasing in value.

Why nonprofits choose Aplos

Your nonprofit’s finances are more than just transactions. They reflect the trust of your donors and the impact of your mission. Built by nonprofit experts and financial professionals, Aplos is purpose-built to help NPOs manage funds with transparency and precision.

No More Workarounds

If you’re using generic accounting systems and cobbling processes together with clunky workarounds, you’re creating risk for your nonprofit.

Simplify Program Tracking

Nonprofits often juggle overlapping initiatives. With flexible tags, you can track projects or events without overcomplicating your chart of accounts.

Demonstrate Mission Impact

Show supporters exactly how their contributions drive your mission. Build trust and encourage long-term giving.

Try Aplos for free

Aplos includes everything you need to manage your finances, prepare your reports and achieve your mission.

Try it For Free Pricing & Features Guide

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Frequently Asked Questions

What types of endowments exist?

There are four common types: unrestricted endowments (the earnings can be spent at the nonprofit’s discretion); term endowments (the principal can be spent after a specified time or event); quasi endowments (internal funds treated like endowments but created by the organization itself); and restricted endowments (the principal is held in perpetuity and only the earnings are spent)

How does an endowment benefit a nonprofit?

Endowments provide reliable, long-term funding, enabling nonprofits to plan for future needs, respond to unexpected challenges, and invest in new initiatives. The fund’s principal remains invested, creating a sustainable source of income for decades

What payout rate should we choose?

Many organizations choose an annual payout of around 4–5% to balance current spending with future growth. A higher payout rate will increase distributions now but reduce long-term growth; a lower rate preserves more capital for the future.

How do I change the tithe percentage in the calculator?

Move the “Tithe Percentage” slider to any value between 1 % and 100 %. Both the annual amount and the amount per paycheck update immediately.

What assumptions does the calculator use?

The sample scenario assumes an 8% annual investment return and a 4% annual payout, which produces steady growth while providing significant grants. You can adjust these assumptions in the calculator to reflect conservative or aggressive investment strategies.

How can I create an endowment?

Endowments can be funded with cash, investments, retirement plans, real estate, personal property, or life insurance policies. Work with your nonprofit’s financial team and advisers to select the appropriate assets, draft an endowment agreement, and establish investment and spending policies.