Sec. 7. All gifts of money, and all money realized from real and personal property made under this chapter to permanently endow:
(1) a state educational institution; or
(2) a chair of learning or department in a state educational institution;
shall be taken in charge by the state of Indiana, as a trust, and managed in all respects the same as the common school fund of the state is managed, and the proceeds arising therefrom shall be paid to the state educational institution being endowed for the purposes provided by the terms of the gift.