In order to safeguard BAM and its future programs, the Academy has established a permanent endowment fund. An endowment fund is like a nest egg and provides financial underpinning to plan for the long-term, to confront unanticipated challenges (like government funding cuts or recessions), and to seize upon new opportunities for growth and advancement.

Endowment funds are separate from annual operating funds. Whereas operating funds are solicited, received, and spent on an annual basis to offset operating costs—including the programming, marketing, and staging of programs like the Next Wave Festival, BAM Opera, BAM Theater, etc.; maintenance and security of the facility and its theaters; and general administrative costs—endowment funds are deposited for investment to earn interest.

Only a very small share of earnings (5%) is released to the institution on an annual basis to provide an additional steady stream of income to the operating budget for special needs. The balance of earnings is reinvested with the principal to continue to grow. The principal of the endowment fund, i.e. the money originally raised and deposited, is never invaded.

Endowment gifts are primarily recognized with commemorative opportunities such as seat endowments, space namings, or endowed fund namings for programs or special initiatives. In this way, an endowment donor is recognized at BAM in perpetuity. Some of these commemorative opportunities include:

History of BAM's Endowment

In 1992, BAM launched The Campaign for BAM to create Brooklyn Academy of Music’s first endowment.

Phase One (1992—1995) established a $12 million nucleus that provided BAM with a basic financial foundation and supported all BAM operations through annual distribution of interest income.

Phase Two (1996—2000) was a comprehensive effort combining operating, endowment, institutional development, and building renovation needs into one unified effort and increased the endowment to $20 million. This achievement was made possible with major gifts from BAM trustees, foundations, corporations, individuals and $1 million in gifts from BAM Friends, subscribers, and single ticket buyers who made commitments to the Endowment Telefund campaign.

Phase Three (2001—2004) aimed to double the endowment—a goal that was successfully achieved and surpassed through leadership grants and gifts from The Peter Jay Sharp Foundation, Richard B. Fisher and Jeanne Donovan Fisher, and matching gifts from BAM trustees, foundations, corporations, and individuals. In October 2004, BAM named its recently restored, historic building at 30 Lafayette Avenue for Peter Jay Sharp.

The continued growth of the endowment is critical to the success and future of BAM. Phase Four (2005—2011), encompassing the 100th anniversary (2008) of the Peter Jay Sharp Building and the 150th anniversary (2011) of the institution, will seek to grow the endowment to a new level to ensure BAM's financial stability and secure BAM’s programming for the 21st century and beyond.

BAM sincerely thanks all contributors who have made gifts to build the BAM endowment.