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An endowment fund is a type of investment fund usually arranged by large, non-profit organizations like hospitals and universities to help manage their operating costs. Donors make contributions into the fund. The fund is managed by its investment policy which dictates the types of investment opportunities the fund nay use and how aggressively the manager can pursue financial targets. The fund also has a withdrawal policy which dictates the amount the institution may withdraw at each period and is typically determined by the institutions actual needs. Endowment funds must be used in accordance with a usage policy. This ensures the funds are being used in the way they were intended to be ... more