Issued: April 3, 1989
ESTABLISHMENT OF NAMED FUNDS FOR CERTAIN
This policy describes the general guidelines for establishing named funds for certain purposes.
2.0 Policy [Top]
Any gift or bequest to the University of Virginia should be made payable to The Rector and Visitors of the University of Virginia. The University's Planned Giving Staff is a resource to provide testamentary language for prospective donors to all schools and foundations, if necessary, and to coordinate with the Office of the Legal Adviser.
It is the policy of the University to approve the establishment of funds for certain purposes upon the receipt of gifts or commitments which meet the prescribed requirements. The use of funds may be specified for purposes such as professorships, scholarships, books, teaching, and research provided the donor submits his or her intentions in writing to the University. Each school or department may suggest special activities, programs, research, lectures, etc., which can be supported by varying amounts of funding. The Board of Visitors has the power, in the absence of written instructions from the donor, to designate funds as quasi-endowment, or for use in other purposes.
A gift or bequest may specify that the funds are either expendable or endowed. In addition, expendable or endowed gifts may be designated as restricted or unrestricted. See Policy IX.A.3 for unacceptable restrictions. If restricted, written instruction from the donor is required.
Named endowment funds are usually pooled for investment with the University's general endowment funds and the individual funds are credited with their pro rata share of the earnings at the annual rate as determined by the Finance Committee of the Board of Visitors.
The establishment of a named endowment fund usually requires a gift with a specified minimum amount. Minimums for named endowment funds are detailed below. The University Treasurer and/or the University Comptroller, in consultation with the Vice President for Development, is empowered to specify required minimum gifts for establishing other endowments. A named endowment fund may be established, even though the principal amount may not have reached the required minimum, if the donor agrees in writing to complete the endowment within a three-year period.
If a gift or bequest for endowment is less than the minimum at the end of the required three-year period, it will be added to the general endowment fund that pertains to the donor's desired intent. If, however, the fund meets the stated minimum dollar requirement to establish a named endowment fund for that specific purpose, the principal and the income earned on that principal will be separately determined for each named endowment fund. Whether the income from the endowment is added to the principal or is expendable should be specified in writing by the donor.
2.1A Eminent Scholars Chairs
A named endowed professorship may be established for scholars who are full or associate professors at the University of Virginia to supplement the available state support for salaries in a school or field of study. Such funds must be submitted for matching under the Eminent Scholars Program or, if in existence, under an equivalent matching program. Special Eminent Scholars request forms (See Procedure 9-4) must be prepared by the University and completed and executed by the donor at the time of the initial gift.
A NAMED ENDOWED CHAIRED PROFESSORSHIP may be established at the University with gifts to total $400,000. If the full $400,000 cannot be submitted at the time of establishing the Eminent Scholars Chaired Professorship, a minimum gift amount of $100,000 must be submitted at the time that the Eminent Scholars request forms are signed, with the balance due within three years of the initial gift.
A NAMED ENDOWED RESEARCH PROFESSORSHIP may be established at the University with gifts to total $200,000. If the full $200,000 cannot be submitted at the time of establishing the Eminent Scholars Research Professorship, a minimum of $75,000 must be submitted at the time that the Eminent Scholars request forms are signed, with the balance due within three years of the initial gift. An Eminent Scholars Endowed Research Professorship may be used to supplement faculty salary while such faculty member is engaged in summer research activities.
A special EMINENT SCHOLARS ENDOWMENT may be established at the minimum amount of $1,000,000. The Commonwealth of Virginia Eminent Scholars Program matches funds up to $500,000 as a salary supplement. The $500,000 balance is not matched by the state but contributes to the base salary and non-salary support of the faculty recipient. A minimum gift amount of $350,000 must be submitted at the time that the Eminent Scholars request forms are executed, with the balance due within three years of the initial gift.
If lifetime gifts or bequests to any of the Eminent Scholars funds do not reach the minimum assigned levels within the three-year period, the assets in the fund will either be transferred to a separate named endowment fund supporting as closely as possible the interests of the donor or merged with an existing endowed fund with a purpose in keeping with the special interest of the donor at the time of the gift and according to existing policy as determined by the Board of Visitors.
2.1B Non-Eminent Scholars Chairs
PROFESSORSHIP ENDOWMENTS may also be established without matching funds. A non-Eminent Scholars Chair may be funded with a $1,000,000 or larger gift to the University. A minimum gift amount of $350,000 must be submitted at the time the endowment agreement is executed, with the balance due within three years of the initial gift.
2.2 Other Endowments
FACULTY SCHOLAR AWARDS for support of base salary of summer research, primarily for promising young faculty engaged in teaching or research, may be established at the $100,000 minimum level. Previously mentioned initial gift amounts for similar professorship levels are required. The three-year pledge period must be followed for all named endowments. The Faculty Scholar Award is not eligible for matching through the Eminent Scholars Program.
A named endowment fund to provide a lecture program (i.e., one which may be used for the honorarium and expenses of a special guest lecturer) may be established when a fund of not less than $10,000 has been completed.
A named endowment scholarship for undergraduates may be established when a fund of not less than $25,000 has been completed.
2.2C Graduate Fellowships
A named endowed fellowship may be established when a fund of not less than $50,000 has been completed.
2.2D Prize/Award Funds
A named financial award for outstanding accomplishment may be provided through the establishment of a prize fund when an endowment of not less than $10,000 has been completed.
2.2E Book Funds
The earnings from a named endowed book fund may be used for the purchase of books or other materials in a particular field or library and also may be used as specified by the donor for other expenses of the library. Such a fund may be established when an endowment of not less than $10,000 has been completed.
2.2F Funds for Physical Plant
Whenever a donor, in making a gift to the University for a building, wishes to have the building named for one whom he/she designates, it is the policy of the University to require that at least fifty-one percent of the announced private funding cost of the building be given by the donor. When gift opportunities are offered for parts of a building, or for landscape features, the University may allow a donor to name such designated portions of buildings or grounds by contributing the entire announced cost. The Vice President for Development will be responsible for submitting recommendations to the University Names Committee for naming to be approved by the Board of Visitors. In no case shall any agreement or understanding in this regard be reached without first obtaining approval of the Board of Visitors.
2.2G Memorial and Commemorative Gifts
Memorial gifts may honor both the living and deceased. The most common gift is "in memory of." However, special achievements often are more effectively honored during one's lifetime, and are more commonly referred to as "commemorative."
A named memorial or commemorative endowment fund may be established when a gift of at least $10,000 has been completed. All such gifts should be coordinated through the Director of Planned Giving. The Planned Giving staff, in turn, will coordinate with the offices of Gift Accounting, Communications and Stewardship in the Office of University Development.
The Director of Special Projects, Office of University Development, will coordinate with the volunteers who express interest in soliciting friends and relatives for a memorial or commemorative gift.
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]