The
UNC Policy Manual
600.2.3
Adopted
10/11/85
Amended
11/10/95
Amended
07/12/02
Amended
09/12/03
Amended
11/11/05
Amended
06/08/07
Amended
10/17/08
Amended
01/20/2022
Policy on the Distinguished Professors Endowment Trust Fund
I.
Purpose. The Distinguished Professors
Endowment Trust Fund was established in 1985 by the North Carolina General
Assembly to enable each constituent institution of the University of North
Carolina to receive and match challenge grants to create endowed professorships
for selected distinguished professors.[1]
A. In 1995, the General Assembly amended
the statute that authorized the trust fund, to make clear that distinguished
professorships could be awarded to either current faculty or newly hired
faculty.[2]
The original legislation provided for matching grants on the basis of one
dollar in state money to be allocated from the trust fund for every two dollars
in private funds. In 2003, the General Assembly amended the statute to change
that ratio to a one-to-one basis for constituent institutions designated as
“focused growth institutions” or as “special needs institutions.”[3]
B. In 2005, the General Assembly amended
the legislation to increase the possible amounts of challenge grants that could
be received under the legislation by allowing a challenge grant of up to
$667,000 to be paid on a two-to-one basis for non-focused-growth and special
needs institutions and up to $1,000,000 to be paid on a one-to-one basis for
focused growth and special needs institutions for a maximum total award of
$2,000,000.[4]
C. Consistent with the terms and
conditions set out in the legislation, the Board of Governors adopts the following policy for administering
the Board of Governors Distinguished Professors Endowment Trust Fund “the Trust
Fund”).
II.
Definitions. The following operational
definitions apply to this policy:
A.
“Focused Growth Institutions.” Refers to the
following institutions, which have targeted support and development: 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 the
following institutions, which have targeted missions and smaller enrollments: University
of North Carolina School of the Arts and the University of North Carolina at
Asheville.
III. General
A.
Appropriated Funds. All funds
appropriated for the Trust Fund shall be held by the Board of Governors in
accordance with G.S. 116-36.1.
B.
Matching Funds. Matching funds
shall be allocated by the president to the constituent institutions from
appropriated funds and interest earnings in the trust fund in accordance with
the schedule set out in section IV., below, and subject to all requirements and
conditions in the policy and regulation being met by the institutions that
apply for allocations.
IV. Requirements for Private Contributions
A. Establishment of Distinguished
Professors Endowment Fund. An institutional board of trustees, to be eligible
for an allocation from the president under the schedule set forth herein, shall
establish a Distinguished Professors Endowment Fund (hereafter “Endowment
Fund”) to be administered in accordance with G.S. 116- 36, and private
contributions received for this purpose shall be deposited to that Endowment
Fund, together with the challenge grant from the Trust Fund.
B.
Levels of Endowed
Professorships. The statutes provide for grants for endowments up to
$2,000,000. This policy provides for four levels of endowed professorships: an
endowment of $500,000, an endowment of $1,000,000, an endowment of $1,500,000,
or an endowment of $2,000,000.
C.
Matching Requirements for an Institution
other than Focused Growth or Special Needs Institution. For a constituent
institution other than a focused growth or special needs institution, the
institution must have the following amounts in private contributions in its
Endowment Fund to qualify for the corresponding transfer of the state matching
funds from the Board of Governors Trust Fund:
|
Private Contribution |
State Matching Funds |
Total Endowment |
|
$ 1,333,000 |
$ 667,000 |
$ 2,000,000 |
|
$ 1,000,000 |
$ 500,000 |
$ 1,500,000 |
|
$ 666,000 |
$ 334,000 |
$ 1,000,000 |
|
$ 333,000 |
$ 167,000 |
$ 500,000 |
E.
Escrow Requirements for an Institution other
than Focused Growth or Special Needs Institution. For constituent institutions
other than focused growth and special needs institutions, the appropriate state
challenge grant amount) may be placed in escrow in the Trust Fund for an
institution that meets the following thresholds of funds raised and committed,
provided that each payment or aggregate payments on this balance shall be no
less than the amount of the initial payment(s) and shall be made on or before
the anniversary date of the initial payment(s), and the full amount shall be
paid within five years of the initial payment(s). When the full requisite
amount is in the institution’s Endowment Fund, the state challenge grant shall
be paid from the Board of Governors Trust Fund.
|
Initial Private Contribution |
Written Pledge Contribution |
State Matching Funds |
Total Endowment |
|
$ 222,000 |
$ 1,111,000 |
$ 667,000 |
$ 2,000,000 |
|
$ 166,600 |
$ 833,400 |
$ 500,000 |
$ 1,500,000 |
|
$ 111,000 |
$ 555,000 |
$ 334,000 |
$ 1,000,000 |
|
$ 55,500 |
$ 277,500 |
$ 167,000 |
$ 500,000 |
F.
Matching Requirements for
Focused Growth and Special Needs Institutions. For focused growth and special
needs institutions, the institution must have the following amounts in private
contributions in its Endowment Fund to qualify for the corresponding transfer
of the state match from the Board of Governors Trust Fund to its Endowment
Fund:
|
Private Contribution |
State Matching Funds |
Total Endowment |
|
$ 1,000,000 |
$ 1,000,000 |
$ 2,000,000 |
|
$ 750,000 |
$ 750,000 |
$ 1,500,000 |
|
$ 500,000 |
$ 500,000 |
$ 1,000,000 |
|
$ 250,000 |
$ 250,000 |
$ 500,000 |
G.
Escrow Requirements for Focused Growth
and Special Needs Institutions. For focused growth and special needs
institutions, the appropriate state challenge grant amount may be placed in
escrow in the Trust Fund for an institution that meets the following thresholds
of funds raised and committed, provided that each payment or aggregate payments
on this balance shall be no less than the amount of the initial payment(s) and
shall be made on or before the anniversary date of the initial payment(s), and
the full amount shall be paid within five years of the initial payment(s). When
the full requisite amount is in the institution’s Endowment Fund, the State
challenge grant shall be paid from the Board of Governors Trust Fund.
|
Initial Private Contribution |
Written Pledge Contribution |
State Matching Funds |
Total Endowment |
|
$ 166,600 |
$ 833,400 |
$ 1,000,000 |
$ 2,000,000 |
|
$ 125,000 |
$ 625,000 |
$ 750,000 |
$ 1,500,000 |
|
$ 83,300 |
$ 416,700 |
$ 500,000 |
$ 1,000,000 |
|
$ 41,600 |
$ 208,400 |
$ 250,000 |
$ 500,000 |
V. Procedures for Establishing Endowed Professorships
A.
A Plan for Establishment of the
Endowment Fund. After an institutional board of trustees establishes the
Endowment Fund required in section IV., above, the chancellor shall prepare a
plan for the establishment of all endowed professorships contemplated. This
plan shall be submitted to the president for review and approval. No challenge
grant shall be made in the absence of an approved plan.
B.
Named Endowed Professorship. The
board of trustees may name an endowed professorship in honor of a donor,
benefactor, or other person or organization in consultation with the private
donor(s) and chancellor in accordance with applicable institutional or UNC
System policies and state laws.
C.
Recipient Title. For a full
professor, the recipient of a Distinguished Professorship shall be called
“Distinguished Professor;” for an associate professor, the recipient shall be
called “Distinguished Scholar;” and for an assistant professor, the recipient
shall be called “Distinguished Fellow.”
D.
Duration of the Distinguished
Professorship. G.S. 116-41.18 allows Distinguished Professorships for the
duration of the full-time service of the distinguished professor as a faculty
member, and it also allows time-limited appointments when authorized by the
Board of Governors and the board of trustees at the institution when a
Distinguished Professorship is originally established or when it is vacated.
The Distinguished Scholars and Distinguished Fellows shall be for a
time-limited, renewable term during a faculty member’s full-time service at the
respective rank of associate or assistant professor. The Board of Governors
delegates the authority to designate a Distinguished Professorship, including
Distinguished Scholar and Distinguished Fellow, as time-limited to the boards
of trustees of those constituent institutions designated as special responsibility
constituent institutions with management flexibility to appoint and fix compensation.[5]
E.
Visiting Professors. Except for
visiting artists at the University of North Carolina School of the Arts, the
endowment may not be used for visiting professors.
VI. Other Matters
A. Effective Date. The requirements of
this policy shall be effective on the date of adoption of this policy by the
Board of Governors.
B.
Relation to Federal and State
Laws. The foregoing policy as adopted by the Board of Governors is meant to
supplement, and does not purport to supplant or modify, those statutory enactments
which may govern or relate to the subject matter of this policy.
C.
Regulations and Guidelines. This
policy shall be implemented and applied in accordance with such regulations and
guidelines as may be adopted from time to time by the president.