An endowment is a targeted capital of a non-profit organization, formed through donations. The income generated from investments is directed towards financing the fund's statutory activities.
The very first fund aimed at supporting educational institutions was established by the Roman Emperor Marcus Aurelius in 176 AD. The fund was dedicated to supporting each of the major schools of philosophy: Platonism, Aristotelianism, Stoicism, and Epicureanism.
The establishment of endowment funds in modern universities began in the 16th century when the grandmother of King Henry VIII created targeted capital to support the universities of Oxford and Cambridge. Today, their combined endowment exceeds $10 billion.