How does an endowment work?

Here is an example of how an endowment helps Clemson Libraries:

Dick and Teresa Finley donate $20,000 to create a library materials endowment for civil engineering materials. At their request, Clemson Libraries names this endowment the “Finley Library Endowment.”

Clemson Libraries is normally able to spend 5% of the endowment’s value each year. This means that $1,000 will initially available for purchases, but this amount will increase over time as the endowment grows. Each year, librarians will use funds generated by the endowment to purchase materials to support the civil engineering curriculum. These materials might include books, journal or magazine subscriptions, DVDs, or databases.

When these items arrive in the library, nameplates honoring the donor will be placed on the items that can accommodate them.