The UNC Policy Manual
600.2.3[R]
Adopted 01/31/22
Regulation
on the Distinguished Professors Endowment Trust Fund
I. Purpose.
The following regulation is designed to provide System-wide consistency and
clarity regarding implementation of the Section 600.2.3 of the UNC Policy
Manual, Policy on the Distinguished Professors Endowment Trust Fund.
II. Goals.
Among the goals of the Distinguished Professors Endowment Trust Fund (DPETF) is
to stimulate private support and commitment to strengthening the faculties and
promoting excellence throughout all of the constituent institutions of the UNC
System. The General Assembly's goal in creating the DPETF was to encourage each
constituent institution to “solicit and receive gifts from private sources to
provide matching funds to the trust fund challenge grants.”[1]
III. Definitions.
The following operational definitions apply to this regulation:
A.
“Focused Growth Institutions.” Refers to Elizabeth City State
University, Fayetteville State University, North Carolina Agricultural and
Technical State University, North Carolina Central University, The University
of North Carolina at Pembroke, Western Carolina University, and Winston-Salem
State University.
B.
“Private Gift” or “Private Contribution.” A donation from a private
individual or entity (including any foundation or business entity). Federal
grant funds do not meet the definition of a “private gift” or “private
contribution.” Private contributions to institutional Endowment Funds must be
given or pledged specifically for the purposes of the trust fund, and only
contributions received after July 1, 1985 may be credited to the special
endowment fund of the institution.
C.
“Special Needs Institutions.” Refers to University of North Carolina
School of the Arts and the University of North Carolina at Asheville.
IV. Procedures
for Institutional Plans for Establishment of Professorships
A.
Plan for Establishment of Endowed Professorship. When the private gift
is placed in the institutional Distinguished Professors Endowment Fund, the
chancellor shall prepare a succinct plan for the establishment of the endowed
professorship contemplated. This plan must be submitted to the president for
review and approval. The plan accompanies a request for state matching funds to
be transferred from the Board of Governors Trust Fund or escrowed to support
the proposed professorship. No transfer or escrow of a state challenge grant
shall be made in the absence of an approved plan.
B.
Plan Description. Plans for the establishment of endowed
professorships submitted by chancellors to the president must describe:
1.
The name of the professorship;
2.
The general level of salary and other benefits and perquisites, and
the anticipated amounts to be supported annually from the endowment;
3.
The academic department or other unit to which it is anticipated that
the new professorship will be assigned;
4.
The academic rank of the professorship (i.e., full professor,
associate professor, or assistant professor);
5.
Whether the professorship will be in perpetuity (i.e., for the
duration of the full-time service of the distinguished professor as a faculty
member) or time-limited;
6.
If the appointment is time-limited, the duration of the appointment
(the standard recommended appointment length is five years):
7.
Whether the professorship will be filled by an external or internal
appointment or by either. Institutions are encouraged to consider plans for
external appointments who will constitute distinguished additions to the
faculty;
8.
The expected benefits to the institution; and
9.
Steps to ensure compliance with all selection procedures included in
subsection VII of this regulation.
C.
Material Changes to the Professorship. Before material changes can be
made to the professorship, an amended plan for the establishment of the
professorship must be submitted with the changes reflected.
1.
Material changes to plans for professorships must be approved by the
original private donor whose gift created the endowment fund or a
representative of the donor before submitting an amended plan for approval.
2.
Material changes include changes to:
a. The academic department or other
unit to which the professorship is assigned;
b. The academic rank of the professorship
(i.e., full professor, associate professor, or assistant professor);
c. Whether the professorship will be in
perpetuity (i.e., for the duration of the full-time service of the
distinguished professor as a faculty member), or time-limited;
d. If the appointment is time-limited,
the duration of the appointment; and
e. Whether the professorship will be
filled by an external or internal appointment or by either.
3.
Material changes do not include selecting a new holder of the
professorship when filling a vacant position.
V. Procedures
Queuing Transfer of State Fund Requests
A.
Insufficient State Funds. In the event that sufficient state funds are
not available in the Board of Governors Trust Fund to meet the pending requests
for matching dollars, requests shall be placed in a queue to await the
availability of State funds. Only requests with approved plans and for which
the requisite private gift has been received shall be placed in the queue.
B.
Additional State Appropriations. Once additional state appropriations
are made, the allocation shall be used to fund as many of the professorships in
the queue as possible.
C.
Escrow. So long as requests for transfer of funds to match full
private gifts exceed the total available dollars, no state funds shall be
placed in escrow.
D.
Priority for Full Private Funding. Priority shall be given to those
professorships for which full private funding has been received. The date when
the private funding was complete and the date when the professorship was placed
in the queue shall be the principal factors used to determine the order of
transferring state matching funds from the Trust Fund to the institution. An
effort shall be made to fund some professorships at each level.
VI. Procedures
for the Use of Funds
A.
Income Earned from Funds. By law, the principal from neither the state
funds nor the private gift can be spent, only the income earned from the
endowment can be used.
B.
Use of Income Earned from Funds. Income from the endowment cannot be
used for any purpose other than the support of the endowed professorship. For
example, a salary supplement for the holder, travel, and research expenses
associated with their professional responsibilities, stipends for teaching, and
research assistants for the distinguished professor, special equipment, or
library books needed to support the teaching and research of the holder of the
endowed professorship.
C.
Income Use. It is a violation of the law to spend the income from the
Distinguished Professors Endowment Fund for purposes unrelated to the
particular professorship. The amount and purpose of the expenditures each year
shall be determined through consultation between the professorship holder, the
appropriate department chairperson, and their dean.
D.
Establishment of Professorship before Matching State Funds. Constituent
institutions may use a portion or all the income paid out of a Distinguished
Professor Endowment Fund to establish an endowed professorship prior to the
receipt of the state matching funds if all the following conditions are met:
1.
The required amount of funds from private sources has been collected
in full pursuant to Section 600.2.3 II., of the UNC Policy Manual;
2.
The plan for the professorship has been approved by the president;
3.
The professorship does not carry the title of “Distinguished
Professorship” until the state matching funds have been received; and
4.
The donor(s) has provided written permission allowing the interest
earned on the endowment to be used to support the purposes of the gift prior to
the receipt of the state matching funds, and the donor(s) understands that the
title of “Distinguished Professor” is limited to those endowments that have
received state matching funds.
VII. Procedures
for the Selection of Endowed Professorship Holders
A.
Selection of Professor for the Endowed Professorship. The selection of
each professor to hold an endowed professorship shall be made in the following
way:
1.
The selection and appointment procedures followed shall be fully
consistent with the institution’s tenure policies and regulations and other
applicable personnel policies;
2.
The Distinguished Professor shall be appointed at the rank of full
professor,[2]
the Distinguished Scholar at the rank of associate professor, and the
Distinguished Fellow at the rank of assistant professor, and the appointment
shall be subject to approval by the Board of Governors at those institutions
not designated as special responsibility constituent institutions with management
flexibility to appoint and fix compensation.[3]
3.
The academic discipline to which the person is appointed shall be one
of major importance to the educational program of the institution; and
4.
The person appointed shall have a record of outstanding accomplishment
in that discipline or field as a teacher and scholar or practitioner.
B.
Intention of Endowed Professorships. The endowed professorships are
intended for full-time faculty members, not for persons whose primary duties
are administrative. If subsequently appointed to a senior administrative
position, however, the holder of a professorship under this program may retain
the professorship under the original terms of appointment to the endowed
professorship.
C.
Exception Circumstances. In exceptional circumstances, a professorship
may be held by more than one faculty member simultaneously, with the income
from the endowment used for allowable expenses of all faculty members who hold
the professorship, in accordance with the professorship’s approved plan.
D.
Vacancy in an Endowed Professorship. When a vacancy occurs in an
endowed professorship established with the Endowment Fund, the chancellor shall
consult with the institutional board of trustees. If material changes are to be
made to professorship, the chancellor shall thereafter recommend to the
president any amendments to the approved plan. Upon approval of the amended
plan by the president or under continuation of a plan without amendment,
selection and appointment of the new distinguished professor, including
distinguished scholar and distinguished fellow, shall then proceed in
accordance with this regulation.
E.
Additional Requirements. Some professorships must meet additional
requirements for the selection of the distinguished professor. Those
professorships are identified below. All professorships other than those listed
below need only meet the requirements in subsections VII.A., and VII.B., of
this regulation.
1.
Any endowed professorships established using nonrecurring funding
appropriated under the 1993-95 Current Operations Appropriations Act[4] shall “recognize excellence in undergraduate
teaching as the primary criterion for selection.”
2.
Professors selected to fill the professorship funded through the C.D.
Spangler Foundation Challenge Grant must be appointed only as a “Distinguished
Professor” and only at the rank of full professor.
3.
A list of the professorships that must meet either of the requirements
listed above is included in the Distinguished Professors Endowment Trust Fund
Operations Manual.
VIII. Reporting
Requirements. Reports regarding the number and current status of the
Distinguished Professorships at each institution shall be reported to the
president annually by July 1. Reports to the president shall include the level
of each professorship, the name of the professorship, whether the professorship
is vacant or filled, and the professorship’s department. For filled
professorships, the name of the professor shall be included. For vacant
professorships, the date the position was vacated shall be included.
IX. Other
Matters
A. Effective Date. The requirements of
this regulation shall be effective on the date of adoption of this regulation
by the president.
B. Relation to Federal and State Laws.
The foregoing regulation as adopted by the president is meant to supplement,
and does not purport to supplant or modify, those statutory enactments,
regulations, and policies which may govern or related to the subject matter of
this regulation.