Tuesday, March 10, 2009
States Rethink Laws Governing Endowment Spending
Over the past two years, 27 states and Washington D.C. have repealed laws that prevent charities from tapping their endowments when those funds have decreased from their original value. NJ is the latest to consider taking similar action to help nonprofits that have seen their endowments erode as the stock market has declined. No doubt, NJ’s nonprofit community welcomes the opportunity to use funds as their board best sees fit. But opponents caution that spending the principle can put these charities in an even more precarious financial position. What do you think?