Sunday, March 01, 2009
We have a hostage situation
http://news.yahoo.com/s/ap/20090301/ap_on_re_us/untouchable_endowments;_ylt=AnBhVX2qSdmvYXbGnpLx4YIb.3QA;_ylu=X3oDMTE5NjU0djloBHBvcwMzBHNlYwN5bl90b3Bfc3RvcmllcwRzbGsDc29tZW5vbnByb2Zp
Ouch. This economy may be the death of some wonderful organizations. This article is about nonprofit organizations that have all the money they need to run, but are not allowed to touch it right now. In other words, the article says, their money is "being held hostage."
Ouch. This economy may be the death of some wonderful organizations. This article is about nonprofit organizations that have all the money they need to run, but are not allowed to touch it right now. In other words, the article says, their money is "being held hostage."
# posted by Sarah Dale @ 5:28 PM 
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This is an interesting concept. I read in the article that the reason for this policy is so that the organizations only use money that is interest that has grown off of the "base" funds. That makes sense as far as keeping the organization safe from using all of its money up, but in a situation like this there should be a clause that would allow them to use the funds they have to operate.
It's a tough call, because where do you make the cut off before you risk losing the endowment? It definitely does suck, because a lot (most? all?) of these organizations do a lot of people a lot of good.
I think it's great that people are finally concerned with how organizations are spending their money. With that said, I also think that it is not fair to dictate how the organizations spend each and every dollar. Every organization is different and some may suffer more in the economic downturn than others. Each organization should be looked at separately. I wonder if this could hurt some organizations more than it could help them?
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