An ABA ballet member sought to learn about the potential value of establishing their endowment as a separate entity from the performing organization. To understand the purpose, perceived value, and challenges associated with this practice, ABA gathered financial information from 100 cultural organizations and deployed a survey to those that have a separate endowment entity.

Findings from the study include:

• Most organizations believe that separating the endowment has served its purposes, including the protection & prevention of assets, control of the outflow, and building trust.

• Overall, organizations perceive value in having the endowment in a separate entity, including healthy finances and union relations, protection of assets, and optimal communication with donors.

• The most common challenges when separating entities include confusion among stakeholders, such as donors and board members.

• Standard endowment draw oscillates between 4% and 5%.

To read these and more findings, download the report below.