Planned Giving
San Francisco Symphony Endowment
The Symphony’s endowment plays a vital role in providing the financial support and stability that further the Symphony’s mission: to set the highest possible standard in musical performance and to serve and shape cultural life throughout the spectrum of Bay Area communities.
The Symphony invests in the organization’s future by preserving and enhancing the real (inflation-adjusted) value of the endowment’s corpus through prudent investments and strong oversight. As a result, the Symphony’s endowment provides a steady, stable, and predictable stream of earnings to allow planning for the Symphony’s enriching programs.
The following are answers to some frequently asked questions concerning the San Francisco Symphony’s Endowment Fund.
What is the San Francisco Endowment Fund?
The Symphony’s Endowment Fund (or “endowment”) plays a vital role in providing financial support and stability in order to further the Symphony’s mission: to set the highest possible standard in musical performance and to serve and shape cultural life throughout the spectrum of Bay Area communities.
The Symphony’s endowment invests in the organization’s future by preserving and enhancing the real (inflation-adjusted) value of the endowment’s corpus through prudent investments and strong oversight. As a result, the Symphony’s endowment provides a steady, stable, and predictable stream of earnings to allow planning for the Symphony’s enriching programs.
Who manages the endowment?
The Symphony’s Board of Governors Investment Committee oversees the endowment by regularly monitoring the performance of its money managers against clear and measurable objectives. The committee is composed of highly regarded volunteer leaders in the financial services industry, supported by the Symphony’s professional staff.
What are the Endowment Fund’s objectives and how well has it met those objectives?
The primary investment objective of the Symphony’s Endowment Fund is to earn an average annual inflation-adjusted return of at least 6% net of all investment management fees over the long term. These financial objectives are intended to balance the needs of current and future generations of beneficiaries of the Symphony’s Endowment Fund. The Symphony’s Endowment Fund assets are highly diversified to maximize returns and reduce risk.
How has the endowment faired during these challenging economic times?
The Symphony’s endowment has not been insulated from recent financial market volatility. Like most endowments, foundations and pension funds, the endowment fund has declined over the past year. Lead by an outstanding Investment Committee, and a well diversified portfolio of investments, the endowment fund has declined approximately 25%. This performance ranks in the upper 50% of similar endowment funds across the country. The S & P 500 declined 37% over the same period. Fortunately, loyal and generous Symphony supporters have continued to add to the endowment during this period so that it can maintain its important role in contributing a substantial share to the Symphony’s operating budget year in and year out.
What is the current size of the Symphony’s endowment?
Since the Symphony’s first endowment in 1920, hundreds of visionary Symphony patrons dedicated to the long-term wellbeing of the organization have added to the fund. As of December 2008, the value of the San Francisco Symphony’s endowment stands at over $185 million. Thanks to prudent investments and the generosity of Symphony patrons, including planned gifts, the Symphony’s endowment has faired relatively well during these challenging economic times.
How much of the endowment does the Symphony allocate to its programs?
The Symphony’s Board of Governors approves an annual maximum spending amount from the endowment. Currently, the spending guideline is 5.5% of the average market value of the twelve previous quarters. It is recognized that the real spending rate must always be less than or equal to the real investment return in order for the endowment to attain its financial objectives.
How is the allotted spending amount of the Symphony’s endowment used?
Earnings from the Symphony’s Endowment Fund are used exclusively to support the Symphony’s musical programs and community activities. The vast majority of the Symphony’s operating budget is applied to program services: the music, youth education, and community programs at the core of the Symphony’s mission.
The Symphony undertakes a highly rigorous multi-level planning and management process for its approximate sixty million dollar annual budget. The organization applies long-term projections and short-term budget adjustments in order to maintain the organization’s financial viability. Revenue and expense strategies are employed as financial and economic factors dictate to ensure that the Symphony’s investments are protected and that budget outlays are appropriate to provide the full range of music, community, and music education programs for which the San Francisco Symphony is so well regarded.
How does the Symphony’s endowment add value to music and education programs?
The Symphony’s endowment contributes immeasurably to the richness of the Symphony’s programming. Endowment Fund earnings from unrestricted and restricted funds underwrote several musicians’ chairs, Youth Orchestra tours, Concerts for Kids and Adventures in Music, to name but a few examples. With the infusion of earnings from the Symphony’s endowment, the Symphony’s many programs can avoid budget shortfalls during the season and afford the financial stability to plan for future activities.
What is the implication of the Endowment to Operating Budget Ratio?
As of December 2008, the ratio of the Symphony’s endowment to its operating budget was 2.9:1, third largest among similarly-sized orchestras nationally. This ratio is a key indicator of the endowment’s ability to support the organizations ongoing operations.
The Symphony’s endowment provides approximately 15% to 20% of the Symphony’s operating budget and ticket income accounts for approximately 40% of the budget. That means that each year the Symphony must generate the balance of its operating budget through fundraising from public and private sources. A priority for the San Francisco Symphony is to increase the ratio of endowment to operating budget in order to provide a larger, permanent and more predictable source of funding for its ongoing programming.
How do I contribute to the Symphony’s endowment?
Contributions to the Symphony’s Endowment Fund can be made as a direct lifetime gift or a planned gift through your estate. Naming opportunities are available at appropriate giving levels for an array of funding needs. Whether by a present or deferred gift, participating in the Symphony’s endowment fund offers a way to dedicate one’s values in excellent music and meaningful programs for current and future generations.
Whom do I contact for further information?
Stephen D. Steiner
Director, Gift Planning
San Francisco Symphony
Davies Symphony Hall
San Francisco, CA 94102
d:(415) 503-5445
f: (415) 431-6857
Email: ssteiner@sfsymphony.org
www.sfsymphony.org/plannedgiving