04-4 Private Support For Named Professorships, Scholarships, Academic And Educational Programs And Endowed Chairs
1.0 Purpose
1.1 Wayne State University encourages alumni and friends of the University to preserve educational excellence and further the University's mission, and at the same time, to perpetuate the association with academic programs of their own names or the names of loved ones, friends, colleagues, or organizations by establishing named gift opportunities.
1.2 Wayne State University seeks to attract, reward, and retain distinguished faculty and graduate and undergraduate students.
1.3 It is the purpose of this university policy to provide guidelines for named endowed or non-endowed professorships, lectureships, fellowships, scholarships, endowed faculty chairs and other essential academic and educational programs.
2.0 Definitions
2.1 Faculty Support
2.1.1 A Named Endowed Chair provides major compensation support for a distinguished faculty member and could provide related support such as research, equipment, or travel funding, and may be used for faculty retention and recruitment.
2.1.2 A Named Professorship provides an annual amount to be applied toward the compensation of a distinguished faculty member for a specified term of years, and it could provide related support such as research, equipment, or travel funding.
2.1.3 A Named Visiting Professorship provides major compensation support for an outstanding visiting professor for a specified term of years.
2.1.4 A Distinguished Visiting Lectureship pays for a distinguished visiting lecturer, generally for a short-term visit that might range from one day to a few weeks.
2.1.5 A Named Lectureship provides expenses for a visiting lecturer for a short-term visit.
2.1.6 A Distinguished Faculty Fellowship may be used to provide support for scholarship through periodic awards on a rotating basis to distinguished members of the faculty who have achieved national recognition in their fields.
2.1.7 A Named Faculty Development Award may be used to support research, equipment, travel, or other expenses of faculty and may be awarded based on outstanding performance and promise of further significant achievement.
2.1.8 A Named Research Fund provides an annual amount to be used for research in a specifically designated area chosen by the donor.
2.1.9 A Named Scholar/Artist-in-Residence Fund provides expenses for a nationally/internationally renowned scholar or artist to conduct work and interact with the University community for a specified period of time.
2.1.10 All endowments will be established with a memorandum of agreement. This agreement will identify the donor’s intention(s) and the university’s responsibility in accepting the endowment.
2.2 Student Support
2.2.1 A Named Graduate or Professional Fellowship provides an annual stipend for outstanding graduate students without requirement of repayment.
2.2.2 A Named Undergraduate/Graduate Student Scholarship provides financial aid awards without requirement of repayment. Scholarships are usually based on academic performance or potential, special talents, or need, but may be restricted in other ways specified by the donors in written memoranda of agreements.
2.2.3 A Named Student Loan Fund provides financial aid awards in varying amounts with the expectation of repayment, with or without interest, at a later date.
2.2.4 A Named Student Prize is an award in recognition of a student's specific performance or achievement without the intention of assisting the student to pay the costs of education.
2.3 Named University Unit and Program Support
2.3.1 A Named University Unit Fund provides for major support of the organization unit. A University unit is a college, school, department, division, center, institute, or similar academic or nonacademic program entity.
2.3.2 A Named Program or Activity Fund provides for a specific program or activity in a college, school, department, or other organizational unit. Named programs or activities include, but are not limited to, conferences; lectures and symposia; concerts and exhibits; collections and publications; and athletics.
3.0 Policy
3.1 A Professorship, Visiting Professorship, Visiting Lectureship, Distinguished Faculty Fellowship, Faculty Development Award, Research Fund, or Scholar/Artist-in Residence may be established either as an endowment or as a term award supported by annual contributions for a specified period of time.
3.2 Scholarships may either be endowed or supported by annual contributions for a specified period of time. Loan funds may either be endowed or established by a minimum contribution.
3.3 Endowed funds may be established on a pledge plan in which a donor makes a commitment to complete an endowment fund by making regular contributions for a specified term of years. A functioning endowed fund will be established once pledge contributions and accumulated interest reach the minimum funding level established for each specific endowment type.
3.4 Endowed funds are established pursuant to University endowment policies that provide for the annual payment of five percent of the market value of the endowment for the benefit of the endowed program and the return of other income or gains on the endowment fund to the corpus of the endowment to ensure the continuing value of the fund in perpetuity. The endowed funds pooled for investment purposes are known as the university’s Common Trust Fund. To provide for stable distributions and to smooth out any dramatic fluctuations in the value of the endowment, distributions from the Common Trust Fund to individual accounts are made at an annual rate of five percent of the fund’s market value averaged over ten fiscal quarters. The market value includes both realized and unrealized gains/losses to the university endowment at a specific time.
3.5 For funds other than endowment, donors may request an alternative schedule of contributions and/or income and principal allocation for the benefit of the funded program, with the understanding that the program will be funded only until the principal and income of the gift have been exhausted.
3.6 Agreements establishing the terms and conditions of endowment funds or funds for a specified term of years will be drafted by the Division of Development and Alumni Affairs in consultation with the donor. The General Counsel or designee and the Vice President for Finance and Business Operations shall sign the agreement for the university. The Vice President for Development and Alumni Affairs shall receive copies of the agreements.
3.7 No distribution from an endowment fund will be made and no individual designated to hold named endowed positions until payment of the minimum endowment level is achieved. Exceptions will be made at the discretion of the Provost and Vice-President of Finance and Business Operations.
3.8 Gifts given to establish endowment funds at Wayne State University may be designated to specific schools, colleges, divisions or departments, but may not be designated to benefit a specific individual.
3.9 The dean of the appropriate school or college will appoint individuals to fill endowed chair or other faculty positions in accordance with university policies and procedures. As a general rule, appointment of a chair will be up to a period of five years. The Provost must approve any deviation from this term of appointment in advance. Reappointment is made on the recommendation of the dean and is contingent upon a successful review at the end of the appointment.
3.10 The Wayne State University Foundation will normally be designated as the fiduciary agent for all named endowments. This includes the principal account and the beneficiary account(s). Exceptions may be made for university affiliates who hold the principal account, provided that the beneficiary account is held in perpetuity by the university or its foundation.
3.11 Endowment funds must be approved by the Board of Governors.
3.12 If the original provisions or purposes of a gift are no longer practical or possible, the terms may be altered after consultation with the donor, if possible.
4.0 Responsibility
Responsibility for implementing this policy is delegated by the president to the Vice President for Development and Alumni Affairs.
5.0 Minimum Funding Levels
5.1 The minimum level for a named endowed fund is $25,000 or greater.
5.1.1 Donors may pool contributions to create a named endowed fund and will receive appropriate recognition.
5.2 Faculty Support
5.2.1 The endowment level for a named endowed chair will vary, depending on the level of the Chair and the academic discipline, but will ordinarily require a minimum funding level of $1.5 million.
5.2.2 Named Professorships
5.2.2.1 The endowment for a named professorship will require a minimum support level of $750,000.
5.2.2.2 The minimum contribution for a named term professorship is $75,000 annually for three years.
5.2.3 Named Visiting Professorship
5.2.3.1 The minimum endowment required for a named visiting professorship is $500,000.
5.2.3.2 The minimum contribution for a named visiting professorship is $50,000 annually for three years.
5.2.4 Named Distinguished Visiting Lectureships
5.2.4.1 The minimum endowment for a named distinguished visiting lectureship is $100,000.
5.2.4.2 The minimum contribution for a distinguished visiting lectureship is $10,000 annually for three years.
5.2.5 Named Lectureship Fund
5.2.5.1 The minimum endowment for a named lecture is $50,000.
5.2.5.2 The minimum contribution for a named lectureship is $5,000 annually for three years.
5.2.6 Named Distinguished Faculty Fellowship
5.2.6.1 The minimum endowment required for a named distinguished faculty fellowship is $500,000.
5.2.6.2 The minimum contribution for a named distinguished faculty fellowship is $50,000 annually for three years.
5.2.7 Named Faculty Development Award
5.2.7.1 The minimum endowment required for a named faculty development award is $100,000.
5.2.7.2 The minimum contribution for a named term faculty development award is $10,000 annually for a minimum of three years.
5.2.8 Named Research Fund
5.2.8.1 The minimum endowment for a named research fund is ordinarily $25,000.
5.2.8.2 The minimum contribution for a named term research fund is $2,500 annually for a minimum of three years.
5.2.9 Named Scholar/Artist-in-Residence Fund
5.2.9.1 The minimum endowment for a named scholar/artist-in-residence fund is $100,000.
5.2.9.2 The minimum contribution for a named term scholar/artist-in-residence is $10,000 annually for a minimum of three years.
5.3 Student Support
5.3.1 Named Graduate or Professional Fellowship
5.3.1.1 The minimum endowment for a named graduate or professional fellowship is $250,000.
5.3.1.2 The minimum contribution for a named graduate or professional fellowship is $25,000 annually for a minimum of three years.
5.3.2 Named Undergraduate/Graduate Student
5.3.2.1 The minimum endowment for a named undergraduate/ graduate student scholarship is $25,000.
5.3.2.2 The minimum annual payment for a named undergraduate/graduate student scholarship is $2,500 annually for a minimum of three years.
5.3.3 Named Student Loan Fund
5.3.3.1 The minimum endowment for a named student loan fund is $50,000.
5.3.3.2 The minimum contribution required for a named student loan fund is $5,000 annually for a minimum of three years.
5.3.4 Named Student Prize Award
5.3.4.1 The minimum endowment for a named student prize fund is $25,000.
5.3.4.2 The minimum contribution for a named student prize fund is $2,500 annually for a minimum of three years.
5.4 Named University Unit and Program Support
5.4.1 The establishment of a Named University Fund will require an extraordinary major gift.
5.4.2 The establishment of a Named Program or Activity Fund within a university unit will require a minimum endowment of $50,000 or annual contributions based on actual costs of the program.
6.0 NOTIFICATION
6.1 The Vice-President for Development and Alumni Affairs will notify the University community and donors of these policies.
7.0 Effective Date
7.1 This university policy applies only to the establishment of professorships, scholarships, academic and educational programs, and endowed chairs created after the date of issuance of the order.
7.2 This university policy is effective from the date of issuance and is revocable by the president at any time and without notice.
7.3 Executive Order 92-2 is hereby revoked, effective immediately.
Signed by President Irvin D. Reid April 29, 2004
04-04 Minimum Support Levels of Named Funds
| Named Endowed Support | Endowment Level | Term Multi-Year Named Funds |
| President's Chair | $5,000,000* |
|
| Dean's Chair | $3,500,000* |
|
| Distinguished Endowed Chair | $2,500,000* |
|
| Chair | $1,500,000 |
|
| Professorship | $750,000 | $75,000 annually for a minimum of three years |
| Visiting Professorship | $500,000 | $50,000 annually for a minimum of three years |
| Visiting Lectureship | $100,000 | $10,000 annually for a minimum of three years |
| Lectureship | $50,000 | $5,000 annually for a minimum of three years |
| Distinguished Faculty Fellowship | $500,000 | $50,000 annually for a minimum of three years |
| Faculty Development Award | $100,000 | $10,000 annually for a minimum of three years |
| Research Fund | $25,000 | $2,500 annually for a minimum of three years |
| Scholar/Artist in Residence | $100,000 | $10,000 annually for a minimum of three years |
| Graduate or Professional Fellowship | $250,000 | $25,000 annually for a minimum of three years |
| Undergraduate/Graduate Student Scholarship | $25,000 | $2,500 annually for a minimum of three years |
| Endowed Student Loan fund | $50,000 | $5,000 annually for a minimum of three years |
| Student Prize | $25,000 | $2,500 annually for a minimum of three years |
| A Named College/School Building or Department |
| Market price as determined by University Policy |
| A Named Center, Institute, Project or Program |
| Market price as determined by University Policy |
*Suggested minimum levels