Dotation

Dotation is a term used in finance, accounting, and public administration to designate the allocation of assets, funds, or other resources to a person, project, organization, or account. The meaning varies by context and language, and it is often translated as endowment, grant, or appropriation in English.

In the nonprofit and corporate world, a dotation commonly refers to an endowment: a principal sum provided to an organization to generate income over time, typically for long-term purposes such as scholarships, research, or general operations. The endowment remains invested, while the income it produces is used according to the donor’s or governing body’s stipulations. A related concept is a regular operating grant or funding allocation, which covers annual expenses and may come with earmarked conditions.

In accounting, dotation can describe the deliberate allocation of funds to specific accounts or reserves. This includes dotations to provisions (allocations for estimated future liabilities) and dotations to depreciation (systematic charging of asset cost over its useful life). Such dotations affect the reported financial position and performance.

In public administration, dotation budgétaire refers to budgetary allocations approved by authorities and distributed to ministries, agencies, or programs. These allocations determine the resources available for implementing policies, delivering services, or financing projects.

Etymology traces the term to the French word for “bestowal” or “endowment.” In practice, dotation encompasses any formalized allocation of resources intended to support an entity, activity, or obligation. See also endowment, appropriation, grant, provision, and depreciation.