Endowment gifts are never spent. Instead, they are prudently invested according to the University's Investment Policy.
Each named endowment produces earnings year after year which are spent according to the donor's wishes, such as for scholarships, faculty support, or to build the library collection. The Investment Policy stipulates that 5% of the earnings are drawn annually from each endowment to be used for the purpose designated by the donor. Earnings above 5% are returned to the endowment's principle, thus providing additional growth.
An endowed fund could be compared to a "magic" cup that seemingly refills itself each time it's emptied. In the same way, Gonzaga has many funds for scholarships and other programs that are replenished year after year once the money is spent. But it's not magic. So what is the source? It is the generous gifts given by benefactors, gifts which are never spent, but which will provide replenishment again and again into perpetuity. What an amazing way to touch so many lives.
Endowment gifts are distinct. They don't become a part of the physical campus, like a building or statue, yet they are more durable than bricks and mortar and will outlast virtually any other kind of gift. Not only that, but the name given to an endowment will live on at Gonzaga forever and serve as a living testament of individuals that are helping to impact the lives of students, forever.