Wednesday, July 8, 2009
Nonprofits Suffer in Albany Stalemate
Governor Patterson of NY is threatening to withhold state senators’ paychecks and “member items,” which are grants given to nonprofits at the discretion of the senators. The number of member items a senator has varies depending on their seniority and leadership roles and the total amount of funds can exceed several million dollars per year. The member items are typically spent in a senator’s district and are viewed by some as an “incumbency protection plan.”
Massachusetts Endowment Law Eases Burden of Recession
The Uniform Prudent Management of Institutional Funds Act allows nonprofits with endowments in Massachusetts to spend a part of the principle amount of their endowment in certain situations. Previously, the principle amount for the endowment could not be spent; they could only spend a portion of the appreciated value of the endowment. Despite the heavy restrictions on when and how the principle amount can be spent, the new law is expected to free funds for nonprofits struggling in the recession.