 Case for Endowment
Building an endowment that complements our stature
While ticket sales, performance fees, government grants and philanthropic support have long provided integral funding to the PSO, such revenue is not enough to produce the necessary income to maintain a world-class orchestra. Consequently, internationally renowned orchestras turn to earnings from their endowment to balance their budgets every year.
The single most important means to sustaining the PSO's world-class artistic excellence is to significantly increase the size of its endowment. This objective is the highest priority in the PSO's campaign. A larger endowment will provide the PSO with sufficient funds to: attract internationally acclaimed artistic leadership on the podium; engage world famous guest artists on the stage; retain nationally recognized principals; sustain a full complement of full-time musicians at competitive compensation; travel annually to perform in the world's finest concert halls; broadcast performances on national radio; and continue to produce recordings for global distribution.
Currently, the PSO draws 6.5% annually from its endowments earnings to help fund annual operations. This percentage draw exceeds the national average by 1.5%, so the PSO Board and staff are committed to reducing the percentage of the draw by 1.25%, thus furthering the organization's commitment to financial stability and long-term fiscal health. This can only be done if the Campaign is successful and the endowment substantially increases, allowing earnings to accrue on a larger principal, thereby allowing for a reduced percentage rate of draw annually.
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