The James B. and Grace J. Nelson Endowment for the Teaching of Philosophy was established in 1991, funded by a 1940 gift from James B. Nelson (LL.B., 1893) of Indianapolis, Indiana, and increased by subsequent bequests from Mr. and Mrs. Nelson and Mrs. Julia-Jean Nelson Stokes. The Department has had access to some income from the bequests since 1983.

The purpose of the bequests was to "establish a Chair or Professorship in the Philosophy" and to bring to the University "in temporary residence thereat or as occasional lecturers persons who are well known as able teachers and lectures in the field of Philosophy." The Endowment funds the Nelson Professorship, Nelson Philosophers-in-Residence and visiting faculty, and an annual Spring Colloquium, as well as providing support for the teaching and research programs of the Department.

Nelson Professors have included Peter Railton, David Velleman, Kendall Walton, and Crispin Wright, as well as Edwin Curley, the current occupant of a Nelson Chair.

There have been more than thirty Nelson Philosophers-in-Residence and more than fifteen Spring Colloquia since the establishment of the endowment.