RALEIGH, N.C. – The North Carolina Symphony has all the money it needs. But in this economy, the orchestra isn’t allowed to touch it. The value of its endowment stands at nearly $6.9 million, a fund the symphony planned to tap this year to help pay its musicians and put on concerts. But because of the slump on Wall Street, the endowment is worth less than the original donations that created it. That means, under North Carolina law, that the money is off limits. It’s a frustrating quandary for universities, orchestras and other nonprofit organizations in two dozen states. They have the money they need to save jobs, offer scholarships and put on a solid schedule of programs, but face state laws that keep them from using any of it. ‘I don’t imagine the donors anticipated a situation where the market would fall so dramatically that the money would be held hostage and unable to support the symphony at all,’ said David Chambless Worters, the symphony’s chief executive. Rules governing how nonprofits in North Carolina and 23 other states use their endowments date to the 1970s, when most states adopted a uniform law that prohibits withdrawing money from endowments that fall below their ‘historic dollar value’ – the money given to create the endowment, plus any later gifts. The law is designed to protect endowments by preventing institutions from dipping into the principal. An endowment is supposed to be a perpetual source of revenue, with institutions drawing off only the earnings. The rule affects newer funds most severely, since they have had less time to invest a gift and build the endowment’s value. Neither the National Council of Nonprofits nor the Council on Foundations, both based in Washington, keeps track of how many of its members are struggling with endowments that are now underwater. But ‘anecdotally, it is a serious problem. And if the current financial downturn continues, the problem will only get worse,’ said Harvey Dale, director of the National Center on Philanthropy and the Law at New York University. The North Carolina Symphony started 2008 with an endowment of $9.3 million, well above its historic dollar value of $7.25 million and enough to allow for a planned withdrawal of $600,000. But with the endowment now underwater, the orchestra is looking for new ways to make money to cover than gap, including scheduling four June performances with the visiting Bolshoi Ballet that should bring in $100,000.