D.1. Policy on Endowed Chairs
     Spring 1992

Development Policy and Administration Manual 
Chapter VI. Endowment Funds
Section D. Endowed Chairs 
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POLICY ON ENDOWED CHAIRS
Approved May 16, 1980
(See below for July 15, 1988 action)



 I.  Scope and Definition

      1.  This policy, effective immediately, shall guide the
          establishment and administration of endowed chairs
          whether established by gift to The Regents or to a
          Campus Foundation.

      2.  An endowed chair is a perquisite, not including base
          salary for the academic year, supported by income from
          an endowed fund established by gift or gifts from
          private sources.


II.  Provisions

      1.  The Regents of the University of California retain
          authority for establishing and naming endowed chairs.

      2.  No commitment for establishing and naming a chair shall
          be made to a prospective donor prior to Regental
          approval.

      3.  The total amount of a gift or gifts to establish an
          endowed chair shall not be less than $250,000. Higher
          minima may be established by individual Chancellors.

      4.  Income from an endowed chair is to be made available to
          the faculty member appointed to the chair in support of
          teaching and research.  Base salary during the academic
          year and the budgeted position for the faculty member
          appointed to the chair shall be provided by General
          Funds available to the campus.

      5.  A pledge to establish an endowed chair shall be in such
          form as to constitute a legally binding commitment by
          the donor.  Pledges to a Campus Foundation shall be
          supported by a binding pledge from the latter to 
          transfer the income to The Regents at the beginning 
          of each fiscal year to fund the chair.


      6.  Whenever possible, a pledge to fund an endowed chair
          shall be accompanied by partial payment, preferably at
          least one-third of the total, and the instrument of
          gift shall include a proposed payment schedule which
          shall not exceed a date specified at the time of
          Regental approval, except in cases where there is a
          binding commitment to complete the funding by bequest
          or similar deferred gift for which there can be no
          predetermined termination date.

      7.  If a chair is to be funded through a campaign, the
          recommendation for approval of the chair and the
          campaign shall be presented simultaneously.  Approval
          of an endowed chair, when a campaign is involved, will
          be contingent upon the receipt of a specified amount by
          the specified closing date of the campaign, with a
          provision for optional use of the funds raised should
          they fall short of the required minimum, or with a
          commitment from the Chancellor to make up any defi-
          ciency from unrestricted funds available to the campus.

      8.  The subject area of the endowed chair must be consis-
          tent with the mission of the University of California
          and the academic plan of the campus.  The gift instru-
          ment shall permit appropriate alternative distribution
          of the income by The Regents if the subject area of the
          endowed chair ceases to be consistent with the Univer-
          sity's mission or the academic plan of the campus. 
          Such alternative distribution shall be as closely
          related to the donor's original intent as is feasible.

      9.  A chair may be named in honor of the donor or an
          honoree proposed by the donor, subject to approval of
          The Regents.  Appointments to endowed chairs shall be
          made in accordance with regularly established Univer-
          sity procedures for faculty appointments.

     10.  Recommendations to establish and name chairs shall be
          presented by the President to The Regents.


     11.  Although this policy is not applicable to chairs
          established and named prior to its adoption, considera-
          tion should be given to administering such chairs in
          conformity with the policy, where consistent with the
          terms of the gift.



     12.  Each Chancellor shall have written procedures on the
          establishment, naming, and filling of endowed chairs
          which incorporate and are consistent with this policy
          and which are in conformity with the administrative
          guidelines and with additional administrative guide-
          lines that the President may issue from time to time.


Addition of Income to Principal, Endowed Chairs

On July 15, 1988 The Regents authorized the President, following
consultation with the General Counsel, to approve addition of
unexpended income to principal for any endowed chair, when the
President finds the circumstances warrant such action and when
approval from the donor has been obtained.  On March 20, 1989,
the President delegated this authority to the Senior Vice
President--Academic Affairs.