Charities Weigh Whether to Use Endowment to Pay Down Debts.

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  • Author(s): Gose, Ben
  • Source:
    Chronicle of Philanthropy. 5/29/2011, Vol. 23 Issue 14, p22-22. 1p.
  • Additional Information
    • Subject Terms:
      CHARITIES; DEBT management; FINANCIAL crises; ENDOWMENTS; CASH flow
    • Abstract:
      The article focuses on the idea being considered by some charities to pay off their debts through endowments. It says that the consideration of the approach results from the financial crisis which caused a sudden drop in endowment values at the same time that other sources of charity revenue were also falling. More-cautious board members believe that using unrestricted funds from the endowment to eliminate the debt might help a charity's operating cash flow.