How Asset Endowment plans can grow your business, while giving back!
How Asset Endowment plans can grow your business, while giving back!

Posted | July 1, 2021

Asset Endowment Plans- the thought of going through the process of taking this plan out sounds more boring than the name of the plan itself. But, Mont Blanc is here to break down this useful policy as well as offer the assistance of our highly experienced insurance brokers- don’t worry, they do all the paperwork.


But let's start by simply defining what this policy means. A company usually takes out an Asset Endowments Plan when they are wanting to donate financial assets to a non-profit group, individual, or institution.


Assets can be in the form of property or investment funds and can come with conditions for the stated purpose of the donation. Generally, in the form of a financial donation, invested funds made from dividends of the original amount are put into charitable endeavors.


There are four different types of endowments; unrestricted, term, quasi, and restricted.

  • Unrestricted endowments. The institution that is receiving the gift, has the freedom to decide how the assets are spent, saved, distributed and invested.[1]
  • Term endowments. This setup usually stipulates that only after a period of time or a certain event can the principal be expended.[2]
  • A quasi-endowment. This is a donation by an individual or institution, given with the intent of having that fund serve a specific purpose. The principal is typically retained while the earnings are expended or distributed per specifications of the donor. These endowments are usually started by the institutions that benefit from them via internal transfers or by using unrestricted endowments already given to the institution.[3]
  • Restricted endowments. These have their principal held in perpetuity, while the earnings from the invested assets are expended per the donor’s specifications.[4]

But you may be wondering, ‘’how does donating financial assets to other individuals or institutions going to help grow my business?’‘ Well, having a structured Asset Endowment Plan allows your company to give to the community in an efficient and controlled manner, while giving you many charitable avenues.


It also cannot be denied that today’s consumers are more inclined to organizations that look further than the bottom line. In fact, it is reported by Cone Communication and Echo Research, that 94% of consumers think businesses should do more than make money and businesses and brands should give back.


Creating an Endowment plan can be a highly effective way of sustainably growing your organization’s CSR (Corporate Social Responsibility) and can be a fun and noble way for you to put charitable projects in place and watch them grow.


Some of the way you can do this is supporting or setting up charitable funds, scholarships or sponsoring sustainable projects, all good for your company’s self-worth.


If this sounds like the right plan for your business, or perhaps need more convincing, inquire with one of our brokers here: Contact | Mont Blanc Financial Services.


[1], [2], [3], [4] Tim Smith (April,2020). ‘Endowment’, Investopedia, [online], Available at: (accessed: 17 June 2021).

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