 | Board of Visitors minutes June 2, 1979 |  |
C. General Policies Pertaining to the Establishment of Funds for Certain Purposes
It is the policy of the Rector and Visitors to approve the establishment of funds for certain purposes upon the receipt
If it is desired to restrict a gift or bequest to a
specified purpose, it is advisable to provide an "escape" clause
so that those who administer the University's affairs in the
future will be left free to make use of the funds in the best
interests of the University under changed conditions. This can be
accomplished by providing the statement:
"If, in the opinion of The Rector and
Visitors of the University of Virginia,
all or part of (this fund) (the income
of this fund) cannot be usefully applied
to the above purpose (or in the above
manner), it may be used for any related
purpose which in the opinion of The
Rector and Visitors will most nearly
accomplish my wishes."
It is recommended that purposes be described as broadly as possible, and that detailed limitations and restrictions be avoided. The Vice President for Development must be consulted before a detailed plan for a specified purpose is approved.
Named endowment funds are usually pooled for investment with the University's general endowment funds and the individual funds are credited with their pro rata share of the earnings at the annual rate as determined by the Finance Committee of the Board of Visitors. A named endowment fund may be established by the University with a principal amount of not less than $10,000.
A named endowment fund may be established, however, even though the principal amount may not have reached the required minimum, if the donor will undertake a binding obligation to supplement the income of the fund with annual gifts sufficient to provide a total income which is equal to at least 5 percent of the principal required for the establishment of the endowment fund. The donor must also agree to complete the endowment within a reasonable period of time.
Any gift or bequest to the University of Virginia should be made payable to "The Rector and Visitors of the University of Virginia, a Virginia public corporation," located at Charlottesville. This is the legal name of the corporate body.
A gift or bequest may specify that the funds are either unrestricted or restricted as to the purposes for which they may be used. Also the donor may designate that the funds either are to be added to endowment or are to be expendable, either currently or over a specified period of time.
If a gift or bequest for endowment is relatively small, it will be added to a general endowment fund. If, however, the fund meets the stated minimum dollar requirement to establish a named endowment fund for a specific purpose, the principal and the income earned on that principal will be separately determined for each named endowment fund.
1. Professorships
A named endowed professorship may be established to supplement the available State support for an existing professorship in a school or a field of study. Such an endowment fund may be established with gifts to total $100,000 where such a fund is submitted for matching under the Eminent Scholars program or under an equivalent matching program. Gifts should total $200,000 if terms of the gift fail to qualify for matching or if matching funds are not available.
2. Lectureships
A named endowment fund to provide a lecture program (i.e., one which may be used for the honorarium and expenses of a special guest lecturer) may be established with a fund of not less than $10,000.
3. Scholarships
A named endowed scholarship may be established with a fund of not less than $25,000 to furnish awards for one or more recipients with awards totaling at least $1,200 but with no award being made which is less than $300 to a recipient. (A fund of $75,000 would be required to have four concurrent recipients each receiving $1,000 annually.)
4. Fellowships
A named endowed fellowship may be established with a fund of not less than $50,000 to furnish awards for one or more recipients with awards totaling at least $2,500 but with no award being made which is less than $1,000 to a recipient.
5. Prize Funds
A named financial award for outstanding accomplishment may be provided through the establishment of a prize fund with an endowment of not less than $10,000 to furnish awards for one or more recipients with awards totaling at least $500 but with no award being made which is less than $100 to a recipient.
6. Book Funds
The earnings from a named endowed book fund may be used for the purchase of books or other materials in a particular field or library and also may be used as specified by the donor for other expenses of the library. Such a fund may be established with an endowment of not less than $10,000.
7. Funds for Student Activities
Gifts and funds shall be accepted for the support of recognized student activities only if such activities have the approval of the Vice President for Student Affairs and meet requirements stated above as to minimum endowment or annual awards to recipients.
8. Funds for Buildings and Grounds
Whenever a donor, in making a gift to the University for a building, wishes to have the building named for one whom he designates, it is the policy of the Rector and Visitors to require that at least fifty-one percent of the announced cost of the building be given by the donor. When gift opportunities are offered for parts of a building or for landscape features, a donor may name such designated portions of buildings and grounds by contributing the entire announced cost. In no case shall any agreement or understanding in this regard be reached without first obtaining approval of the Rector and Visitors.
| Board of Visitors minutes June 2, 1979 | |