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Earlier this month, the Wall Street Journal reported that some nonprofits are petitioning their states to allow them to spend more of their endowments.

The nonprofits, which include both universities and other charities, have found that little-known state laws sometimes prohibit them from spending the money from endowed funds that are "under water" -- that is, when stock market losses have caused the principal to dip below the value of the original gift.Map of states that have eased regulations on endowment spending -- or are considering enacting such laws

Some newly enacted laws have allowed more flexible spending of endowment funds. The map at right (from the Journal) shows other states that are considering changing their laws as well.

As the Journal article notes, just a year ago universities were under pressure to spend more of their endowments, as some members of Congress worried that endowments were growing too fast.

Read the entire article here.

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