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The team from Charity Navigator, the nation's largest independent charity evaluator and leading donor advocate, shares their thoughts on emerging nonprofit-sector issues and offers tips to better inform your intelligent giving decisions.

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Over the past two years, 27 states and Washington D.C. have repealed laws that prevent charities from tapping their endowments when those funds have decreased from their original value.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?

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