All gifts given for the purpose of establishing an endowment must be formally accepted by The Board of Trustees of The University of Alabama. Establishment and management of endowment funds represent a significant legal and financial commitment on the part of the University. Recognizing that such sums must often be accumulated over a period of years, the Board of Trustees generally is cooperative in working with a donor who wishes to spread the payments toward an endowment over several years.
An endowment fund may be designated for a specific purpose, program or campus unit depending on the wishes of the donor and is subject to the approval of the Board of Trustees. Under law, a portion of the earnings produced by investing the principal (corpus) of the endowment may be spent for the intended purpose.
The University has an investment policy which is designed to preserve the real value and to enhance the purchasing power of earnings so as to keep pace with inflation and with evolving University needs. In order to accomplish this, the Board of Trustees has established a spending rate which it reviews annually. Earnings realized beyond those necessary to fund the annual spending rate and costs of portfolio management are retained to protect the principal of the endowment against inflation and to enhance future earnings.
The allowed types of endowments (also known as "named gifts") are described below along with the minimum amount required by UAB to officially establish and activate each type of endowment.
|| MINIMUM LEVEL
An endowed chair is among the most prestigious and meaningful gifts that can be made to an academic institution. Funds provided by an endowed chair are used to attract and retain nationally or internationally recognized scholars or researchers. An endowed chair may provide full salary or a salary supplement and fringe benefits for the recipient of the chair, for support staff or for other expenses as the endowment agreement permits.
Funds generated by an endowed professorship are used to support the salary or work of the holder, who also may use the honorary title associated with the professorship. An endowed professorship is structured like an endowed chair; however, it provides a lower level of support to the holder.
|Endowed Visiting Professorship
Distinguished faculty from other institutions often bring new experiences and perspectives to share with students and faculty colleagues. Visiting professors add richness to an academic program and are a valuable addition to campus life.
|Endowed Graduate Professorship
Funds provided by an endowed fellowship are used to attract up-and-coming scholars and researchers into short-term (typically one- or two-year) post-doctorate positions in a specific discipline or field which is of interest to the donor.
|Endowed Research Fund
Income provided by an endowed research fund is used to support research in a discipline, disease or area of interest as stipulated in an agreement with the donor. The research fund may be named according to the wishes of the donor.
The income from an endowed lectureship often is used to bring a distinguished scholar to UAB each year to lecture on a particular subject or in a specific discipline. The lectureship series may be named according to the wishes of the donor.
|Endowed Loan Fund
Income provided by an endowed loan fund is used to offer loans to students with demonstrated financial need. Students are required to repay over time the amount lent to them according to guidelines established by the donor. The UAB Office of Student Financial Aid administers these loan funds.
Funds generated by an endowed scholarship are used to provide financial assistance to students who meet certain criteria specified by the donor. For example, the donor may wish to benefit students enrolled in a particular school or program or students with a particular grade point average. In other cases, the donor may wish to give UAB more flexibility to adapt the criteria based on changes in student recruitment needs.
|Endowed Program Support Fund
The income provided by an endowed support fund is used to advance the ongoing operations of a specific program designated by the donor. An endowed program support fund may bear the name of the donors or may be named to honor an individual or organization suggested by the donor.
|Endowed Library Book Fund
An endowed library book fund will provide books or periodicals for one of UAB's libraries in perpetuity. In addition, bookplates affixed to the purchased books acknowledging the source of funds provide an enduring tribute to the donor or a loved one.
|Endowed Award Fund
An endowed award fund may be established to provide academic awards or to fund a designated academic purpose.