WHAT’S IN A NAME?

What’s in aName?

A charitable plan with naming rights presents donors with a slice of immortality and a gift that keeps on giving for generations

By Judy Martel

In his 1889 seminal book, The Gospel of Wealth, industrialist Andrew Carnegie urges the rich to live modestly and give generously. Today, the Carnegie tradition lives on through thousands of philanthropic works bearing his name, including free public libraries, foundations, public trusts, and universities.

Donors have been putting their personal mark on charity since the earliest efforts to develop the New World. The country’s oldest college, Harvard, was named after John Harvard, who left his library and half his estate to the institution upon his death in 1638. These days, it might take a little more than the bequest of a personal library to buy the naming rights to a university. But with organizations becoming more creative, philanthropists will find myriad opportunities beyond brick-and-mortar projects to publicly identify their financial largesse, including lecture series, exhibits, landscaping, scholarships, and more. Case in point: Two Northwestern University trustees and their wives endowed the salary for the men’s basketball head coach, now named the Sullivan-Ubben Head Men’s Basketball Coaching position.

Donors who want to lend their name to a cause typically seek public recognition of their passions, says Rick Schneider, senior vice president of advancement at the National Center for Family Philanthropy. “And for families, especially those with a foundation that includes multiple generations, there is a sense of enduring legacy and also inspiration for the community,” he adds.

On the flip side, there are donors who believe giving anonymously is virtuous, representing true charitable intent without the ego-boosting public fanfare. But Schneider says most don’t seek naming opportunities for the recognition alone. Rather, it’s considered a benefit that comes with supporting a cause they believe in—often to the tune of tens of millions of dollars. And because of their popularity, naming rights are usually marketed and “sold” to donors as such, so they know upfront how much their name will cost.

Finding appropriate naming opportunities to match a donor’s financial ability and passion is the job of the fundraiser, says Bill Stanczykiewicz, director of The Fund Raising School at the Lilly Family Institute of Philanthropy at Indiana University-Purdue University. If they are not carefully managed, naming opportunities can garner negative repercussions. Multiple donors competing for one major prospect—as in a building—will likely result in a trail of disappointed contributors.

Before a campaign is launched, Stanczykiewicz counsels fundraisers to examine every need associated with the project and break it down into potential funding proposals. In the case of capital disbursements, the building itself is typically at the top of the list as the most visible, enduring, and expensive part of the project. From there, the remainder of the organization’s needs are identified and divided into individual opportunities—some ongoing and others one-time expenditures. With thoughtful planning, there’s something to match every contributor’s financial ability and interest to ensure a lasting legacy.

Harvard University

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