Prepared by: The Scientific Committee of Rakaez Company for Waqf Management and Development One might donate money for a specific need, and the impact of that money ends. Alternatively, one can make their money a principal whose entity remains and whose benefit is renewed year after year. This is where the concept of endowment begins, giving charity an impact that extends over time. **Meaning of Endowment** An endowment is not just a donation that ends with the spending of money. Rather, it is the dedication of a principal whose entity remains and whose benefit is directed towards the purpose for which it was endowed. Jurists have defined endowment as retaining the principal and donating its usufruct. This concise definition clarifies that endowment is based on two interconnected matters: retaining the principal and donating its usufruct. To understand the meaning of endowment more clearly, we begin with what is meant by retaining the principal. This means that the money is allocated to the endowment and its principal is preserved, so it is not treated like money that is spent and ends. Instead, it remains endowed for the purpose for which it was allocated, according to the regulations governing endowments. As for donating its usufruct, it means directing the benefit or yield generated by the endowed money to the beneficiaries or purposes specified by the endower. **A Real-Life Example** Suppose a person owns a building and rents it out, benefiting from the rent. Then, they decide to make it an endowment, dedicating its proceeds to the education of needy students. In this case, the building remains the endowed principal, and the rent generated from it is a financial benefit directed towards the purpose specified by the endower. **The Difference Between Direct Donation and Endowment** Here lies the difference between a person donating a sum of money that is spent once and endowing a principal whose benefit is renewed over the years. **Preservation of the Principal and Continuity of Benefit** The continuity of benefit does not necessarily mean a fixed income. The building might require maintenance, and there might be periods when its yield decreases or temporarily stops, without changing the purpose for which it was endowed. It is important to understand that the goal of endowment is not merely to preserve the money but to achieve the benefit for which it was designated. The preservation of the principal is a means to the continuity of benefit, not an end in itself. Thus, endowment combines a principal dedicated to permanence with a benefit intended to continue, according to the nature of the endowed asset and its specified purpose. When we understand this relationship between the principal and the benefit, we realize why endowment is a form of extended giving and how an act initiated by a person in their lifetime can have its benefits continue after them, reaching generations they never met. This clarifies the concept of endowment: it is a form of giving based on the preservation of the principal and the continuity of its benefit, so that good deeds continue according to the intention of the endower. In our next article, we will discuss the virtue of endowment, and how its impact and reward extend across generations. __________ Specialists in endowment management, organization of its affairs and procedures, development of its performance, and enhancement of its benefits, thereby promoting endowment sustainability and achieving its objectives.