Symphony San Jose

“The symphony needs the liquidity to be able to draw approximately 5% of the principal annually to supplement the operating budget. The goal of the spending policy is to apply a disciplined and reasoned approach to moving money from the endowment fund to its beneficiary on a predictable, consistent basis. The current spending policy is based on the payout rate multiplied by the average market value of the fund over the previous 12 quarters. A 27% range will be in place to allow for board discretion during particularly volatile periods. Notwithstanding these spending parameters, the original corpus shall not be invaded except as provided within the specific donor terms for the $1 million gift as described above. Any changes to the endowment's spending policy shall be recommended by the investment committee and/or investment advisors, with ultimate approval by the board of trustees.”

“The symphony is exempt from federal income taxes under section 501(c)(3) of the internal revenue code and state income taxes under section 23701(d) of the california revenue taxation code. Accordingly, no provision for income taxes has been made in the accompanying statements. In addition, the symphony qualifies for the charitable contribution deduction under section 170(b)(1)(a) of the internal revenue code and has been classified as an organization that is not a private foundation under section 509(a) (1) of the internal revenue code. Generally accepted accounting principles provide accounting and disclosure guidance about positions taken by an organization in its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken by the symphony in its federal and state exempt organization tax returns are more-likely-than-not to be sustained upon examination. The symphony files information returns in the u.s. Federal jurisdiction and state of california. The symphony's federal returns for the tax years ended june 30, 2022 and beyond remain subject to possible examination by the internal revenue service. The symphony's california returns for the tax years ended june 30, 2021 and beyond remain subject to possible examination by the franchise tax board.”