Endowment Capital
Capital is transferred to a management company, invested, and the income annually goes to the needs of a museum, university, or school. The capital itself is not spent — so the assistance lasts for decades.
«Today, endowments have become an important part of the state's economic agenda. They directly affect the sustainability of higher education institutions, allowing them to fully develop science and education, and also provide a reliable rear for related areas — sports, culture, and the social sphere».
What you gain and what changes
- An endowment is the only form of assistance that lasts for decades: your capital works even after you are gone.
- Unlike a regular donation, endowment capital is not spent — the institution receives only investment income.
- According to Federal Law-275, capital is maximally protected: a management company with a Central Bank license, mandatory reporting, a board of trustees.
Step-by-step plan
- 1
Choose an institution with an active endowment
There are about 270 endowment funds in Russia: Moscow State University, HSE, Hermitage, Tretyakov Gallery, European University, Skoltech, etc. Each has an endowment charter and an investment declaration.
What to check- The institution aligns with your values
- The endowment has existed for at least 3 years
- Capital profitability over recent years is 5-10%
Documents- Endowment fund charter
- Investment declaration
- Latest annual report
- 2
Agree on the specific purpose
The income from your contribution can be directed to a specific program: scholarships in your name, a department, an annual exhibition, restoration of a specific hall. This is stipulated in the agreement.
What to check- Specific purpose formulated
- Agreed with the board of trustees
- Stipulated in the donation agreement
Documents- Donation agreement with reference to Federal Law-275
- 3
Deposit funds and receive confirmation
Funds are transferred to a special fund account. The management company invests them according to the approved declaration (typically — bonds, deposits, blue-chip stocks).
What to check- Payment processed to the fund's account
- Included in the donor registry
- Agreement and act signed
Documents- Payment order
- Donor certificate
- 4
Monitor profitability and expenditure
Once a year, the fund publishes a report: how much was earned, how much was allocated to programs. As a donor, you receive a personalized report and can participate in meetings.
What to check- Received annual report
- Studied the management company's profitability
- Assessed the targeted use of income
Documents- Fund's annual report (public)
- Donor's personalized report
Flow diagram
A visual map of how your support turns into real outcomes and who is responsible for each step.
Legal basis
- Federal Law-275 of 30.12.2006On the procedure for the formation and use of endowment capital of NPOs
The main law. Minimum endowment capital — 3 million ₽, formation period — up to 1 year.
- Federal Law-275Art. 13 — donor's rights
You have the right to determine the purposes of income use and control their observance.
- Tax Code of the Russian FederationArt. 219 p. 1 subp. 1
Social deduction of 13% also applies to donations to endowment funds.
- Regulation of the Central Bank of the Russian Federation No. 451-PActivities of Management Companies
An endowment management company must have a special license and disclose its investment structure.
Beware of scammers
- Check the management company's license on the Bank of Russia website (cbr.ru).
- Do not confuse an endowment with an ordinary fund — the status is fixed by the charter.
- Profitability of 5-10% per annum is normal; promises of «20%» are a reason to be wary.
Stories that inspire
Established in 2011, by 2024 the capital exceeded 1.5 billion ₽. Income goes to restoration, expeditions, and acquisition of exhibits.
One of the oldest in Russia (since 2008). Funds named scholarships, support for young scientists, faculty development.