“The Most Powerful Force in the Universe,” these are the words Albert Einstein used to describe the strength of compounding interest and the strength of endowments.
As the author of Poor Richard’s Almanack, Benjamin Franklin, advised: A penny saved is a penny earned. Now, 200 years after his death on April 17, 1790, Boston and Philadelphia are about to become beneficiaries of Franklin’s 18th century wisdom. Franklin bequeathed the cities a total of $:2,000 sterling, with one hitch: much of the money could not be drawn on for 100 years, and the rest could not be distributed for 200 years. Today, what remains of Franklin’s bequest is worth $6.5 million!
Follow this link to learn more about the Power of Endowments.
Endowments are permanent funds in which the principal is never spent. The balance in these funds is invested, earning returns that are distributed to support charitable works in perpetuity.Over time, the amount granted exceeds the original contributions to the fund, while the original gift remains intact. In fact, thanks to responsible investing, the fund balance continues to grow over time.
