D.1. Policy on Endowed Chairs Spring 1992 Development Policy and Administration Manual Chapter VI. Endowment Funds Section D. Endowed Chairs ************************************************************* 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.