Rethinking Naming Rights

Hello Everyone,

I hope you are enjoying the end of summer.  We have some interesting articles for you this month.  One thing that has caught my attention lately is the intense focus on naming rights.  We are seeing more and more law suits, and now even pay backs, from naming rights.  Yes, pay backs--where organizations that accepted an in perpetuity naming right opportunity in the past, later decided to buy out the heirs because someone else donating money asked for naming rights. Talk about transactionalizing fundraising and the donor.  What is happening now reinforces why we have to be so very careful in how we use naming rights and for how long. 

The upside is that these negative experiences are sparking some very creative approaches. Many organizations are moving toward leased naming opportunities, or time-bound naming rights.  Then a donor can exercise naming rights for a period of years or decades, giving them and their heirs first right of refusal at the end of that time period. Upon non-renewal, a new donor can take over the naming opportunity. 

So, why am I sharing all of this? With fall around the corner, a lot of fundraising campaigns are preparing for launch.  Take some time with your leadership to think about your position on these topics. Get on the same page about how you want to handle naming rights. Be sure you know what you will and will not do, and have clear guidelines. Identify what steps you would take to help donors navigate these decisions.  This will prevent you from getting into a touchy situation with a donor. And it may give donors a chance to see how you handle things, which will give them guidance and clarity on how they handle their own decisions.

Have a blessed month,

Jamie