Battered Nonprofits Seek to Tap Nest Eggs

Feb. 11, 2009, The Wall Street Journal — Universities, museums and other nonprofits battered by investment losses are pushing states to ease legal limits on spending so they can tap their endowments to avoid imminent layoffs and deep cuts to programs.

For colleges, in particular, the effort marks a startling turnaround, yet another example of the impact of the financial meltdown. Only a year ago, universities, with their $400 billion in endowment money, faced a congressional inquiry because of widespread concern they needed to spend more of their savings on financial aid for students. Now, colleges are finding that state laws aren't letting them spend enough.