What is an Endowment Fund and how does it differ from ordinary charitable donations?
Endowment Fund (Target Capital) is the property of a non-profit organization, which is formed by donations and transferred to the management company for financial transactions in the stock market to generate income. The income received is used for the statutory activities of non-profit organizations.
The funds that are allocated to the endowment fund are intended to fulfill the strategic goals of the organization, and not current ones, which allows the non-profit organization to generate income over a long period of time.
The difference between endowment capital and ordinary charitable donations lies in the fact that the capital is transferred to the trust management of a management company, which invests this money in the development of the Russian economy and profitable economic projects. The received investment income is annually transferred to the account of the owner of the target capital.
In Russia, legal relations related to the endowment fund are regulated by the Federal Law of December 30, 2006 N 275 “On the procedure for the formation and use of the endowment capital of non-profit organizations”.
The endowment fund of the State Memorial Museum of Defense and Siege is named after Marshal L.A. Govorov, an outstanding Soviet commander, Marshal of the Soviet Union (1944) and Hero of the Soviet Union (1945). L.A. Govorov led the defense of Leningrad during the blockade, breaking through the blockade in January 1943 and completely lifting the blockade of the city in January 1944.