The Endowment Fund is established to enable members of the Foundation to contribute financially to conservation management on the island. It also allows for capital to be invested in order to generate an income in perpetuity. The surplus at the end of the financial year is usually transferred into the endowment fund which is managed by an international investment firm. The return on investment is either put back in the endowment or used to support priority environmental projects on the island.
A governing constitution for the establishment of the Fund, operational guidelines stipulating the rules and procedures managing the fund and use of the proceeds, as well as sufficient contributions to generate an income from the endowment.
Supporting under-resourced islands: Some islands have active Foundations where the financial contributions cover the conservation management more than sufficiently. However, other Foundations with less economic activities, or with extremely sensitive habitats, receive fewer resources. Therefore, promoting cross-subsidisation between Foundations would support less resourced islands with equally importance ecosystems, as well as helping to support islands struck by natural disasters, e.g. cyclones.