N.J. Eyes Repeal of Endowment Restrictions
March 9, 2009
The New Jersey legislature is considering a bill to allow recession-hit charities in the state to draw funds from their shrinking endowments, reports the Associated Press.
The measure would repeal a state law barring nonprofits from tapping endowments that fall below their original value, a fate that has befallen many charities due to the stock-market plunge and other investment losses. “This is about [nonprofits’] survival,” said Richard Codey, the bill’s co-sponsor and president of the Senate.
Twenty-seven other states and Washington, D.C., have enacted similar measures in recent years.
