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My researcher chatted with a global nonprofit about their fundraising efforts a few days ago. They told her the organization doesn’t accept gifts that could compromise its integrity or place the charity in an awkward position. And that’s a good thing. The nonprofit knows it must adhere and stay true to its mission. And that’s true even if it means the loss of donor funds. After that chat, I came across an article in Nonprofit Quarterly titled “The Concept of Negative Goodwill: When Do Naming Rights Cross the Line?”

 

New York City Public Library

I smiled because the same researcher, a New Yorker, has long complained about naming rights. Stephen Schwartzman, the founder of Blackstone, renamed the central New York City Public Library on 5thAvenue to The Stephen A. Schwarzman Building. In her mind, this corporate titan emblazoned his name on a New York City landmark with historical significance. She’s not the only New Yorker who thinks it tarnished the institution’s legacy.

Abington High School

In the article, here was Schwarzman again, this time in Pennsylvania, looking to change the name of a cherished high school from Abington High School to Abington Schwartzman High School. He was seeking to donate $25 million to a tech center. And also wanted to have the approval of contractors hired for the tech center build. This time around, the community revolted.

Change.org Petition

As noted in the article mentioned above, one petition on Change.org stated, “Is $25m the price you put on the spirit, pride, history and memories of the thousands and thousands of alumni who have attended Abington Senior High School?” Another petition said, “A tribute to this man’s excessive ego is not a gift to the school, it’s a gift to himself. Selling out for money? What kind of message does that send to our teens?”

Negative Goodwill from Naming Rights

For many years, plenty of other examples of major donors exist of those who asked their names to get placed on buildings, rooms, libraries, and even in renaming organizations. However, naming opportunities is a balance that must consider the institution and its legacy. In the case of Abington High School, the school had a meaningful legacy in the community, and it ran too deep and much broader than the $25 million Schwarzman was offering.

Nonprofit Leadership

If there wasn’t such an adverse community reaction to the naming rights change, would anyone in the school’s leadership position have asked Schwartzman to reconsider? Based on the explanation, my guess would be that once Schwartzman committed the $25 million, the school would have gone ahead with the plans to change the name of the high school were it not for the blowback.

Handling Naming Opportunities

Although I’ve never met Schwarzman, by all accounts, he’s a hard-charging and demanding person that expects to win. However, nonprofit leaders must consider the history and meaning of their institution within the community before they agree to conditions set by donors in exchange for a significant donation. I realize that it can be challenging to say “no” to a lot of money, especially if it can create an enormous impact. Still, the reality is that communities and the public don’t like bowing down to monied interests.

  • If you have a donor in your community who is looking to make a game-changing donation, don’t just jump and accept the gift. Be prepared to walk away from it, especially until you fully understand the terms.
  • If there is a request for naming rights, carefully consider the pros and cons of this particular action. Would it sit well with your community? Would it make sense for the organization? Would you be able to receive the gift with integrity?
  • Take into consideration the amount of the gift versus the naming opportunity costs. In other words, if you’re asked the change the name of your institution, is the donation sizable enough to be commensurate with such an action and everything you may lose, including goodwill and perhaps the support of other donors?

Closing Thoughts About Naming Rights

Perhaps what happened with Abington High School is the beginning of a naming rights trend? Has the public finally tired of capitalists emblazoning their names on institutions without considering the organization’s history and legacy within the community? Only time will tell if that’s the case, but it’s nice to know that organizations out there don’t dismiss history and legacy so easily.

 

Author of “Not Your Father’s Charity: Grip & Rip Leadership for Social Impact”(Free Digital Download)

 

© 2018 Wayne Elsey and Not Your Father’s Charity. All Rights Reserved.