Endowment Funds
When you include The Laguna Playhouse in your will/trust or as a beneficiary of a retirement plan or life insurance policy, the Playhouse will invest the funds in the The Laguna Playhouse Endowment with other previous gifts.
A team of investment professionals manages the entire endowment. Each year, The Laguna Playhouse 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 Laguna Playhouse will increase over time.
Chart A below illustrates the growth of the annual distributions to The Laguna Playhouse 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 Playhouse. 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 Playhouse. Each year it will continue to grow. In year 50 it will be able to provide $3,799 dollars to The Laguna Playhouse.
All told, over the fifty years we have charted, the fund will have distributed a total of $108,367 in annual distributions to The Laguna Playhouse. All that from a single $20,000 gift that has now grown to almost $76,000 and continues to provide needed distributions to the Playhouse. 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 Laguna Playhouse leaving 3% additional in the fund each year.
Your original gift is never depleted; it provides annual support each year into the future.
Chart B below illustrates how a gift of $20,000 to the The Laguna Playhouse Endowment will grow, providing greater annual distributions to The Laguna Playhouse. The illustration assumes the same average investment rate of return of 8%, which is not a guarantee, and annual distribution to The Laguna Playhouse of approximately 5% that we used above.
Chart A
Chart B
Click here to return to the planned giving home page.
The Laguna Playhouse recommends that you consult your tax advisor for complete details about the tax deductibility of the charitable gifts you make as they apply to your personal circumstances.
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 Laguna Playhouse by Future Focus under an exclusive licensing arrangement with MajorGiving.com, LLC. Please report any problems to section webmaster.
