Baltimore Sym Wipes Out Debt With Huge Endowment Draw

The good news is that the Baltimore Symphony is about to rid itself of all the red ink it accumulated over the last several years. The bad news is that the cost of doing so will be nearly a third of its entire endowment. The move, which is extremely unorthodox, will pay off the BSO’s $16 million accumulated debt all at once, and leave the orchestra with $8 million in cash on hand. The remaining endowment (around $62 million, low for a major American ensemble) will be transferred to a new, independent trust which the BSO hopes will give donors confidence in the organization’s fiscal prudence.