The minimum gift to endow a chair is $2 million and to endow a professorship is $1 million. Endowed positions are used to recruit tenured faculty from other universities or to reward St. Mary’s tenured faculty for teaching and scholarly excellence and professional engagement.
The current spending rule for St. Mary’s University is 4.75% of the endowed fund. The application of these resources are to be used in the following ways when the endowed position has been used to reward a current tenured faculty member:
With regard to recruiting tenured faculty from other universities, the formula will necessarily differ, typically in the following way:
This Policy includes existing endowments, although it will not include a change to existing holders of endowed chair or professorship positions. As those positions go through a re-appointment process, new hire, or new internal appointee, the Policy will be applied. As the endowment market value increases, the amount of funding will increase also and be applied using consistent percentages. This Policy also applies to Trusts, unless the Trust provisions dictate otherwise.
Appointment terms will be communicated in writing by the Provost.
Example: Assume a professor’s salary is $80,000 and benefits are 25% ($20,000), for a total of $100,000 charged to the operating budget. An endowed professorship of $1 million provides initial funding of $47,500 ($1 million x the spending rule of 4.75%).