Demon went mad, providing hand-out (9)
I believe the answer is:
endowment
'hand-out' is the definition.
(endowing someone with something)
'demon went mad' is the wordplay.
'mad' indicates anagramming the letters.
'demon'+'went'='demonwent'
'demonwent' is an anagram of 'ENDOWMENT'.
'providing' acts as a link.
(Other definitions for endowment that I've seen before include "one's landed with?" , "Natural talent -- won't emend (anag)" , "Gift to an institution" , "Contract" , "Bequeathed income" .)