Art Endowments in Indiana – No Spending Sprees in Sight

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January 9, 2011; Source: WIBC | The arts organizations in Indiana that went into the recession with significant endowments are exhaling very cautiously and, many think, temporarily after a recent rebound in their investments. Since no one expects the rebound in the stock market to last through 2012, many groups are working at cutting down on their draw from endowment. The Indianapolis Symphony Orchestra for instance was drawing down 8.9 percent for its operating costs before the recession hit and is now down to a 7 percent draw with a goal of 5 percent. The Indianapolis Museum derives 68 percent of its operating budget or $14.4 million from its endowment but it is also planning to cut its draw rate to about 5 percent which, according to WIBC in Indiana, is the ceiling above which no sensible nonprofit with choices should go right now.—Ruth McCambridge