|
Endowment Growth
When you include California Symphony Orchestra, Inc. in your will/trust
or as a beneficiary of a retirement plan or life insurance policy,
the California Symphony will invest the funds in the the California
Symphony Endowment with other previous gifts. A team of investment
professionals manages the entire endowment. Suppose that each year,
the California Symphony receives a distribution of approximately
5% of the value of the fund. If the endowment earns an average of
8%, the additional 3% remains in the fund; thus your original gift
to the California Symphony will increase over time.
The chart on the left illustrates the growth
of the annual distributions to the California Symphony of an endowment
gift under these assumptions. The 3% net growth in the fund each
year means the following year there is a greater amount available
to the California Symphony. Looking at the chart, you can see that
in the tenth year the fund has grown to the point where it is able
to provide $1,361 to the California Symphony. Each year it will
continue to grow. In year 50 it will be able to provide $3,799 dollars
to the California Symphony.
All told, over the fifty years we have
charted, the fund will have distributed a total of $108,367 in annual
distributions to the California Symphony. All that from a single
$20,000 gift that has now grown to almost $76,000 and continues
to provide needed distributions to the California Symphony. Of course,
this is based on the assumptions we outlined in the opening paragraph;
that the fund grows at 8% each year and pays out 5% to the California
Symphony leaving 3% additional in the fund each year.
Your original gift is never depleted; it
provides annual support each year into the future.
The chart on the right illustrates how
a gift of $20,000 to the the California Symphony Endowment will
grow, providing greater annual distributions to the California Symphony.
The illustration assumes the same average investment rate of return
of 8%, which is not a guarantee, and annual distribution to the
California Symphony of approximately 5% that we used above.
Click here
to return to the planned giving home page.
Please note, individual
financial circumstances will vary. The information on this site
does not constitute legal or tax advice. Donor stories and photographs
are for purposes of illustration only. As with all tax and estate
planning, please consult your attorney or estate specialist. All
material is copyrighted and is for viewing purposes only. Use of
this site signifies your agreement with the terms
of use. The content in this Planned Giving section has been
developed for the California Symphony by Future
Focus. Please report any problems to webmaster.
Revised: May 14, 2007 8:07.
| 
