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.

 

 

 



[1]S.L. 1985-757, Sec. 202; G.S. 116-41.13-41.19.

[2]S.L. 1995-507, Sec. 15.12; G.S. 116-41.18.

[3]S.L. 2003-293; G.S. 116-41.13.1, et. seq.

[4]S.L. 2005-276, Sec. 9.21(a-c); G.S. 116-41.15; 116-41.16; and G.S. 116-41.17.

[5]See Sections 600.3.2 and 600.3.4 of the UNC Policy Manual.