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Policy: IX.A.8

Issued: April 3, 1989

Owner: Vice President for Development

Latest Revision:

SAMPLE NAMED ENDOWMENT AND BEQUEST LANGUAGE

1.0 Purpose

This policy describes the general guidelines and examples for using named endowments and bequest language.

2.0 Policy [Top]

Lifetime gifts to establish a named endowment fund must follow Policy IX.A.6, "Establishment of Named Funds for Certain Purposes." The minimum dollar amount at the time of the gift will be honored for gifts to establish life income plans if cleared beforehand by a University Planned Giving staff member.

To consider potential changes in University gift policies with the passage of time, each of the following examples of suggested language should be amended for testamentary gifts. Development officers should instruct University benefactors that named endowments must meet minimum dollar requirements at the time of gift transfer, as approved by the Board of Visitors. Should the amount of the bequest not meet the minimum requirements for a named endowment, the principal of the bequest will be merged with an already existing endowment fund whose purpose is in keeping with the desires of the donor. The University Planned Giving staff is available to assist all schools and foundations with benefactors and their legal advisers.


2.1 Unrestricted Gifts and Bequests

An unrestricted gift or bequest is of special value because of the freedom to use it wherever and however needed. An unrestricted gift or bequest intended for the general purposes of the University, one which the University is free to use either to establish an endowment fund or to expend in whole or in part as it deems best, might read simply:

"I hereby give (give, devise and bequeath) to The Rector and Visitors of the University of Virginia, a Virginia public corporation located in Charlottesville (the sum of $. . . .) (all the rest, residue and remainder of my estate) (. . .percent of my residuary estate) for the general purposes of the University as the University may determine."

If the donor or testator wishes to assure that the principal will be used to establish an endowment fund and remain as such permanently with the earnings only to be expended, the will might read as follows:

"I hereby give (give, devise and bequeath) to The Rector and Visitors of the University of Virginia, a Virginia public corporation located at Charlottesville (the sum of $. . . .) (all the rest, residue and remainder of my estate) (. . .percent of my residuary estate) to establish the . . . . Fund, the earnings only to be used for the general purposes of the University as the University may determine."


2.2 Restricted Gifts and Bequests

Many donors understandably have special interests which they may desire to promote or support. Bequests or gifts for these restricted purposes may be expressed as follows:

"I hereby give (give, devise and bequeath) to The Rector and Visitors of the University of Virginia, a Virginia public corporation located in Charlottesville (the sum of $. . . .) (all the rest, residue and remainder of my estate) (. . .percent of my residuary estate) to establish (the fund) for the benefit of the (College) (School) to be used for (the library) (for publications) (for research) (for scholarships), etc."


2.3 Suggested Language for Specific Purposes

2.3A Professorships

To establish a named professorship at the University of Virginia, either by an inter vivos gift or through a bequest, the following statement is suggested:

"I hereby give (give, devise and bequeath) to The Rector and Visitors of the University of Virginia, a Virginia public corporation located in Charlottesville (the sum of $. . . .) (all the rest, residue and remainder of my estate) (. . .percent of my residuary estate) to establish the. . . . . .Fund. This Fund shall be added to the University's Eminent Scholars Endowment Fund and the income therefrom shall be used to attract and retain eminent scholars in the field of at the University through the establishment of the . . . . . .Professorship in the (College, School) of. . . . . Such income, when applied to the salary of an Eminent Scholar, is to be matched by State appropriation when and if such funds are provided by the Commonwealth of Virginia for such purposes."


2.3B Scholarships or Fellowships

The following form will create by bequest a named scholarship or fellowship endowment fund which will be efficient to administer:

"I hereby give (give, devise and bequeath) to The Rector and Visitors of the University of Virginia, a Virginia public corporation located in Charlottesville (the sum of $. . . .) (all the rest, residue and remainder of my estate) (. . .percent of my residuary estate) to establish the. . . . Fund, the earnings only to be used for (scholarship) (fellowship) to students in the University of Virginia (College of Arts and Sciences) or (other school within the University). Awards from this fund are to be designated (. . . .Scholarships) (. . . .Fellowships). The earnings of this fund may be used each year, or if not so used, may be used in a subsequent year or years, or added to the principal of the fund as the University may determine."


2.3C Teaching, Research or Lectureship Funds

Named endowment funds may be given for teaching, for research, or for lectureships in specific areas. While it may be desired to refer to the academic area of the teaching, lectureship, to the subject matter, or field of research, provisions should permit discretionary use in a different academic area, subject or field:

"I hereby give (give, devise and bequeath) to The Rector and Visitors of the University of Virginia, a Virginia public corporation located in Charlottesville (the sum of $. . . .) (all the rest, residue and remainder of my estate) (. . .percent of my residuary estate) to establish the (Fellowship) (Research Fund) (Lectureship). The earnings only from the fund may be used for the stipend and support of (a teaching fellow) (a research fellow) (for a research program in. . . . . .) (for the support of a member of the teaching staff with the rank of lecturer or a visiting professor in. . . . )."


2.3D Book Funds

"I hereby give (give, devise and bequeath) to The Rector and Visitors of the University of Virginia, a Virginia public corporation located in Charlottesville (the sum of $. . . .) (all the rest, residue and remainder of my estate) (. . .percent of my residuary estate) to establish the . . . . . Fund. The earnings only may be used for the purchase of books or other materials (in the field of. . . . ) and for other purposes of the (University of Virginia Library) (the Law School Library), etc."

If the fund is restricted to a particular library or a particular field, it would be desirable to permit alternative use in other fields at the discretion of the University Librarian.

3.0 Definitions [Top]

4.0 References [Top]

5.0 Approvals and Revisions [Top]


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