Battered Nonprofits Seek to Tap Nest Eggs

Since the spring of 2007, encouraged by nonprofits, 26 states have passed laws loosening the spending restrictions. Twelve of those states, including California and Ohio, acted in the past eight months.

The new laws adopted in many states allow nonprofits to use a flexible definition of "prudent" spending that includes factors such as the age of the gift, economic conditions and other available resources.