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Endowments
An endowment is a transfer of cash or other income generating assets to another party for a defined purpose (usually to support future operating costs and periodic maintenance). This is with an expectation that no other public sector investment should be required in the near future and the endowment therefore enables a clean break from future involvement.
English Partnerships uses endowments to provide an exit route from involvement with, or responsibility for, a particular asset or site. Endowments can also protect the financial and amenity value of previous public investment in an asset by allowing it to operate and be maintained to an acceptable standard in the future.
When endowments can be used
Endowments could be used in a variety of circumstances across English Partnerships’ business activities. It may be appropriate to provide endowments to local authorities and to other bodies where this is appropriate to enable on-going sustainable ownership and asset management at the local level.
Endowments may be used in some or all of the following circumstances:
- English Partnerships wishes to comply with its CNT(Commission for the New Towns) disengagement remit
- English Partnerships wishes to remove its direct or indirect interest in land or property or infrastructure, in a given location
- There is a need for public sector investment to provide for the future
management and operation of an asset - English Partnerships wishes to protect the value or amenity benefit of previous or associated public sector investment, and to secure the continued operation and maintenance of an asset for public benefit
- The costs associated with maintaining and operating an asset are greater than any income to be generated from it or available to it from other sources, and the asset is to be maintained for public use
- It is believed that an organisation other than English Partnerships could effectively and appropriately undertake the ownership and management of an asset
- No other public or private sector resources are available or are likely to be available in the foreseeable future in relation to the asset.
English Partnerships’ guidance
The Endowments Best Practice Note (BPN), gives English Partnerships' guidance in on the use of endowments.
The BPN provides guidance for Project Officers on:
- justifying the use of endowments
- the potential recipient organisations
- the conditions of use
- the appropriate method for calculating the endowment sum.
The Endowments BPN should be read in conjunction with the Financial Memorandum.
Download the Endowmwnts BPN- PDF (217 KB)
If you require any further information on endowment methodology, please contact Simon Dancer, Economist on 020 7881 1643.
