What on earth is an ethical endowment — and why does it matter for women?

Let’s start with the basics.

An endowment is a pot of money that’s invested to generate income over the long term. Instead of spending the whole fund at once, the money is carefully invested so it can keep producing funding year after year.

Think of it like planting a tree rather than buying fruit. You don’t just get one harvest — you get many.

Most endowments are invested in financial markets. This usually includes a mix of:

• Shares in companies (the stock market)

• Government or corporate bonds (essentially loans that pay interest)

• Property or infrastructure funds

• Sometimes social impact investments

  
  

The goal isn’t quick wins or risky bets. It’s steady, long-term growth.

Professional fund managers usually oversee these investments to make sure the money is protected and grows over time.

Where does the income come from?

Endowments generate money in two main ways:

1. Investment returns (profit)

If investments increase in value over time, the fund grows.

2. Income payments (interest or dividends)

Some investments regularly pay income:

• Bonds pay interest

• Shares often pay dividends (a portion of company profits)

This creates a steady stream of funding each year.

How much gets spent — and how much is reinvested?

A key principle of an endowment is protecting the core fund so it lasts forever.

Typically:

• Only a small percentage of the fund (often around 3–5% per year) is spent on grants or activities. In the case of the Forever Fund though, we have calculated a re-investment of 7% at the beginning because the financial situation facing the women's sector is so dire.

• The rest of the investment returns are reinvested to keep the fund growing and to account for inflation.

  
  

This is what makes an endowment sustainable.

So what makes an endowment “ethical?"

An ethical endowment does two important things:

1. It invests responsibly

The money isn’t just put anywhere that makes a profit. It’s invested in ways that align with values — avoiding harmful industries and supporting businesses that contribute positively to society and the environment.

That means:

• No investing in things like fossil fuels, arms, or hyper-exploitative industries

• Prioritising investments that support sustainability, fairness, and social good

  
  

2. It supports long-term change — not short-term fixes

Traditional funding often comes in short bursts. Organisations spend huge amounts of time applying for grants just to survive another year.

An endowment changes that.

It provides:

• Reliable, long-term funding

• Financial stability for frontline organisations

• Freedom to plan for the future

  
  

Why does this matter for women’s organisations?

As we all know, women’s organisations — especially those led by and for marginalised women — are chronically underfunded, operating in crisis mode with short-term grants, constant uncertainty and limited ability to invest in leadership or long-term solutions

An ethical endowment flips this model.

Instead of scrambling for survival, the Forever Fund would be a source of long-term, core funding for women's organisations that mean can:

• Focus on lasting social change and systemic solutions to women's inequality

• Build strong leadership

• Respond to emerging needs

• Scale up the services they know work for women

  
  

This isn’t just about money — it’s about power

At its heart, an ethical endowment is about setting up a financial infrastructure that holds the women's sector ecosystem together. This solid financial footing will have untold positive impacts on the ability of the women's sector to do what they do best: support women and change society for the better.

Because real change doesn’t happen in funding cycles.

It happens when communities have the resources, stability, and power to lead.