Rule 60202: Endowed Academic Positions, Endowed Student Support, and Other Endowments

1.  Title

Endowed Academic Positions, Endowed Student Support, and Other Endowments 

2.  Rule and Regulation

Sec. 1  Purpose of Endowed Academic Positions, Endowed Student Support, and Other Endowments.   Endowments are central to the continued growth and excellence of individual institutions and the education and success of students throughout the U. T.  System. Faculty holders of Endowed Academic Positions shall have a distinguished record of excellence (Chairs/Professorships) or demonstrated accomplishment or future promise in the intellectual field (Faculty Fellowships). Holders of Endowed Academic Positions shall contribute substantially to the mission and goals of individual institutions. Holders of Endowed Academic Positions are stewards of the Endowments and are subject to periodic evaluation to ensure satisfactory performance. Recipients of Endowed Student Support shall be selected based on need or merit-based criteria in line with donor intent and applicable policy and law.

Sec. 2  Approval Prior to Announcement.   Negotiations and fund raising for an Endowment are permitted prior to its formal approval and establishment by the Board or its designee(s). However, an Endowment may not be announced as having been established prior to its establishment by the Board or its designee(s). All initial or new holder appointments to a Chair or Professorship require prior approval by the Chancellor. Under special circumstances and when authorized by the Chancellor, an institution may grant an Endowed Professorship to an outstanding faculty member prior to achieving full professor status. The Chancellor may delegate authority for approval to the appropriate institution president or Executive Vice Chancellor.

Sec. 3  Reporting and Compliance.   Each institution should report annually to the Chancellor on appointments to Endowed Academic Positions. The U. T. System Office of External Relations, Communications, and Advancement Services, in coordination with the institutions, conducts an annual endowment compliance program assessing expenditures, usage of funds, and adherence to donor intent.

Sec. 4  Categories and Minimum Funding Levels.   

4.1  Endowed Academic Positions.  The categories of endowed and named academic positions and the minimum funding levels to establish the positions are:  

Distinguished Chair               ($3 million)
Chair                                      ($2 million)
Distinguished Professorship  ($1 million)
Professorship                         ($500,000) 
Faculty Fellowship                  ($250,000) 

4.2  Endowed Student Support includes:

Graduate Fellowship             ($50,000)
Scholarships                          ($25,000)

4.3  Other Endowments.  Other miscellaneous Endowments may be established to provide support for items such as, but not limited to research, programming, student experiences, facilities, and additional needs of the institutions.

Other Endowments will be established with gifts that have been completed for tax purposes or with a combination of such gifts, pledges, and other funds at a minimum funding level of $25,000.

4.4  Individual institutions are not required to utilize all categories of Endowments and may, with advance administrative approval and inclusion in the institutional Handbook of Operating Procedures, focus institutional endowment activity to those categories that best fit the institution’s mission and goals.

4.5  Whether funding has attained the minimum level necessary to establish a particular category of Endowment will be determined by the total value of gifts from donors and transfers of funds valued as of the gift date or date of transfer. Funding levels may not be determined by the amount of net sale proceeds received from a non-cash gift or by the current market value of the investments held in an Endowment.

Sec. 5  Distributions for Endowed Chairs and Professorships.  The institution will set the salary of the holder at a level commensurate with his or her record, experience, and position in the faculty. Subject to donor criteria, distributions from the Endowment may be used for a reasonable amount of salary support as determined by institutional policy, for salary supplementation, and for other professional support of the holder of the Endowed Chair/Professorship, including assistance in the holder's research program. An institution may, with advance administrative approval and inclusion in the institutional Handbook of Operating Procedures, utilize a minimal portion of the distribution to support costs associated with administering the Endowment (only if not already receiving endowment administration funding from other sources) and/or for strategic priorities, according to the purpose of the Endowment. Chairs/Professorships are intended to have holders. However, unfilled Chairs/Professorships may be used to support faculty fellows, according to the purpose of the Endowment. Faculty may also be appointed as a fellow supported by funds available from a filled Endowed Chair/Professorship.

Sec. 6  Distributions for Endowed Faculty Fellowships.   Distributions from an Endowment may be used for reasonable salary support, salary supplementation, and/or other professional support of the holder of the fellowship, who may be a qualified person of any academic rank irrespective of tenure status. The Endowed Faculty Fellowship may also be used to provide temporary support (not to exceed one academic year) of:

• distinguished scholars who are in temporary residence at the institution while participating in planned academic programs; 
• visiting scholars who are in temporary residence at the institution for special academic programs or purposes;
• institution faculty who have made unique contributions to academic life or the knowledge in their academic discipline; and 
• institution faculty of any academic rank, irrespective of tenure status, who have been selected for teaching excellence. 

Sec. 7  Evaluation of Holders of All Endowed Academic Positions, including Faculty Fellowships.   Individual institutions shall, with advance administrative approval and inclusion in the institutional Handbook of Operating Procedures, establish procedures for the review of holders of Endowed Academic Positions. Such review shall normally occur in conjunction with existing performance appraisal processes, such as annual evaluation (for Faculty Fellowships) and comprehensive periodic review (for Chairs/Professorships).

Sec. 8  Oversight of Endowments Supporting Faculty Positions.   Each president is responsible for maintaining oversight of Endowments established to support faculty positions, including assignment of holders and use of distributions, but may delegate this authority.

3.  Definitions

Endowment – funds that typically have certain donor-imposed restrictions placed upon the principal and/or the funds available for distribution (e.g., income and/or gains).

Endowed Academic Position – Distinguished Chair, Chair, Distinguished Professorship, Professorship, or Faculty Fellowship.

Endowed Chair/Professorship – a faculty position supported by an Endowment from which distributions are dedicated to reasonable salary support (as determined by institutional policy), salary supplementation, research support, and/or other professional support of a faculty member, subject to donor criteria. The holder will normally be a faculty member who has had a distinguished career. Except in extraordinary circumstances, the holder will be named to an Endowed Chair/Professorship for a specified length of time. The Chair/Professorship may be renewable or non-renewable.

Endowed Faculty Fellowship – a faculty position supported by an Endowment from which distributions are dedicated to reasonable salary support (as determined by institutional policy), salary supplementation, research support, and/or other professional support of a faculty member of any academic rank, subject to donor criteria. The holder will normally be a faculty member who exhibits demonstrated accomplishment or future promise in the intellectual field. The Endowed Faculty Fellowship will be awarded for a specified length of time. The Fellowship may be renewable or non-renewable.

Endowed Student Support - an endowed fund with a purpose primarily to support student success including through student scholarships.

4.  Relevant Federal and State Statutes 

None 

5.  Relevant System Policies, Procedures, and Forms 

None 

6.  Who Should Know 

Administrators 
Chief Business Officers 
Development Officers 

7.  System Administration Office(s) Responsible for Rule 

Office of Academic Affairs 
Office of Health Affairs 
Office of External Relations, Communications and Advancement Services 
Office of General Counsel 

8.  Dates Approved or Amended 

Regents’ Rules Revision History 

9.  Contact Information 

Questions or comments regarding this Rule should be directed to: 
•  bor@utsystem.edu