Annenberg Tightens Strings on Philadelphia Orchestra Funds
June 4, 2012 | Read Time: 1 minute
In the wake of the Philadelphia Orchestra’s bankruptcy case, the Annenberg Foundation will exert greater control over the $50-million it gave to the symphony in 2003, according to The Philadelphia Inquirer.
Under a revised donor agreement drawn up as part of the orchestra’s reorganization plan, the Annenberg funds will be removed from the group’s endowment and placed in a trust administered by an outside entity for the orchestra’s benefit.
Orchestra leaders said the foundation—which had but did not exercise an option to withdraw the $50-million grant outright as a result of the Chapter 11 filing last year—recommended moving the trust out of concern that creditors could tap the funds if they remained in the endowment.
The new pact also makes several stipulations regarding the orchestra’s finances, management, and performance schedule. If the orchestra defaults on any of those, it could lose the Annenberg funds. Orchestra President Allison B. Vulgamore said the benchmarks were drawn from both the orchestra’s strategic plan and foundation suggestions.
