Endowments take hit - is there a broader association impact?

Saw this on the Web today about a decline in endowments for the University of Kansas, a story that revealed the sliding stock market has hurt The KU Endowment Association's ability to fund scholarships: From the story:
The association announced Thursday it would decrease monetary support to the University of Kansas by 10 percent for the 2009-2010 school year. The association’s president, Dale Seuferling, said in a letter that returns from the endowment’s long-term investment program declined by 26.6 percent from July 1 to Oct. 31, prompting the association to take dramatic action.

TK While this story would seemingly have no connection at all to trade associations, a common thread is the fact that many associations commonly hold securities (such as common stocks) in their portfolio of assets. While KU's endowment is a whopping $1.2 billion, produce associations may hold far smaller but still substantial holdings of U.S. securities.Falling stock prices combined with falling interest returns on cash savings hit not only well heeled individuals, but also associations of every type. Of course, how the economic crisis affects operations of associations may range from no impact at all to the scenario described above, where a decline in dividends and assets will play out with cutbacks in funded activities. Something to watch.....