An endowment fund is a permanent fund that may be in a donor's name, the name of someone a donor seeks to honor, or in the name of an organization. Endowments can be created during a donor's lifetime, or left in a will as a legacy of generosity. These funds provide an ongoing source of funding, drawing from the interest of an invested fund. This ensures that an individual or organization can benefit the community for years to come. New endowment funds require an initial minimum donation of $20,000, raised over a period of two years. These funds become “endowed” once they reach $20,000 in value. Consequently, distributions from endowment funds do not occur until $20,000 has been raised and invested.