Planned giving can be as simple as naming the Paducah Symphony Orchestra in your will or on an insurance policy. Planned giving can use trusts and other methods to employ sophisticated and detailed formulas to evaluate and meet needs. For example, income from an asset can support you and your spouse during your lives, with the remainder going to the PSO, or vice versa, if the size of your estate is a greater concern than present income. Planned giving can have desired tax effects, particularly if you have an asset that has increased greatly in value.
You may talk to PSO representatives about general concepts, and your legal and financial professionals about details. PSO Endowment Trustees, Ann Gwinn, John Halsell, and Dick Roberts, and PSO Executive Director, Daniel Sene will be glad to meet with you.
The Paducah Symphony Orchestra Endowment Trust would be an ideal beneficiary of your planned giving. The Endowment Trust exists to provide flexible, financial support to the PSO at present and, once the corpus of the Trust generates enough income, enhance the orchestra’s quality and mission in the future. Because the future cannot be foreseen, there are no specific criteria for use of Trust assets. Structure, discussed below, is used to assure prudence in managing the trust. However, the following action that is contemplated by the Trustees illustrates the financial flexibility the Endowment Trust may provide.
In a year the PSO raises an amount of money about equal to what it spends. Unfortunately, expenses are incurred before income is received; therefore, it must borrow money, on which it pays interest, to meet this cash-flow problem. The Endowment Trustees contemplate lending this needed money to PSO. The interest rate can be less than the PSO now pays but more than the Endowment Trust makes on its present investments, and all of the money is kept in the family.
The Endowment Trust holds assets that were donated for this purpose. The trust is managed by the three Trustees. Trustees are elected by members of the Paducah Symphony Orchestra, Inc. at its annual meeting, as are officers and directors of the PSO. The three Trustees are elected to staggered, three-year terms. Investments of Trust assets must be made pursuant to a policy adopted by the directors. That policy will have to be amended to use Trust assets as discussed above, and this demonstrates the prudence inherent in the structure of the Trust. To expend assets other than for investments and routine administrative expenses requires the majority votes of the PSO Board of Directors and the Endowment Trustees.