Endowed vs Nonendowed Funds
Funds are classified as endowed or nonendowed.
Endowment funds, also known as permanent funds, provide grants in perpetuity by applying a “spending policy rate” to determine what percentage of the fund's assets are available for grantmaking. The current rate is 4.5% of the average fund balance over three years.
Nonendowed funds, also known as temporary funds, allow grants at any time and in any amount.