Battered Nonprofits Seek to Tap Nest Eggs

"Where do you take an animal you find on the street?" says spokesman Brian Adams. "Is it possible to find an animal a home in this recession?"

Gift-spending restrictions on nonprofits were enacted across the country in the 1970s. State legislators passed a raft of rules that let charities -- which traditionally favored bonds -- put their savings in stocks and other growth-oriented investments. But a key proviso protected an institution's long-term health: An endowment couldn't spend a dime if a gift fund fell below its initial dollar value. Endowments are generally made up of major gifts, each with restrictions of how they can be spent.
[to the rescue]