What Is “Naming” in Philanthropy?
What Is “Naming” in Philanthropy?
In fundraising and philanthropy, “naming” refers to public recognition of a charitable contribution, such as when a building is named for one of the lead donors who funded the project. Naming a building is at the very high end of naming opportunities. There are also naming opportunities at much smaller levels, such as when many donors each name a brick.
For example, the David Geffen Galleries at the Los Angeles County Museum of Art are named in recognition of Geffen’s $150 million donation to the $750 million capital campaign to construct the museum’s new building.
Naming opportunities in philanthropy:
- Publicly recognize a charitable gift or grant.
- Commonly used for capital projects, endowed positions, and scholarships.
- Vary in size of contribution and level of visibility.
What are different types of naming opportunities in nonprofit fundraising?
Capital Projects
Capital projects – such as a new building – are the classic naming opportunity. Naming a physical facility shows the tangible impact of a donor’s contribution.
Endowed Positions or Scholarships
Distinguished positions and scholarships are also commonly named. For example, the Martin H. Smith Professor of History is not Martin H. Smith, but rather a distinguished professor holding a position that has been funded by Martin H. Smith’s contribution. Scholarships are appealing naming opportunities for many donors.
Named Programs or Projects
A funder can also name a program or profit at a nonprofit, such as the Green Family Lecture Series at UCLA’s math institute or Glorya Kaufman Presents Dance at the Music Center.
How does naming work in philanthropy?
It’s common for a fundraiser to offer a major donor a naming opportunity. In other cases, donors seek out naming opportunities. There are a few technical details to be aware of regarding naming in philanthropy:
- A naming donation is not an exact match for a project expense line. The amount of a naming contribution does not necessarily equal the cost of building the named space. That is, a $100,000 donation to name the Mark Gonzales Fountain does not mean that the cost of constructing the fountain is $100,000. When matching naming opportunities to contribution amounts, considerations include:
- Fundraisers offer naming opportunities at different levels based on what needs to be raised for the total project cost, not as a dollar-for-dollar match between each donation and the expenses associated with the particular named space.
- Fundraisers also need to think about the ongoing cost of maintaining the project after it’s built, not just the cost of initial construction.
- In the case of endowed positions or scholarships, the endowment contribution should be at an amount that will generate annual income sufficient to pay for the annual salary or scholarship.
- Naming agreement. The terms of the naming will be documented in the gift agreement or grant agreement. Terms will include things like the exact spelling and phrasing to be used in the name as well as the timeline of the naming – it might be in perpetuity, but it could alternately be for 10 years or 50 or anything in between. The agreement will also reflect any requirements or terms laid out in the nonprofit’s board-approved naming policy.
- No undue influence. Naming does not entitle a donor to influence a nonprofit’s programs or operations. Choosing to be recognized publicly for a charitable contribution means a donor generally supports the nonprofit or the program, but not that they control or have outsize influence on the nonprofit or program.
Why do nonprofit fundraisers use naming opportunities?
Naming is used as part of nonprofit fundraising for many reasons:
- Naming appeals to some donors. Many donors are inspired by the idea of being able to see the tangible result of their gift – and being publicly recognized for it.
- Can inspire other donors. Having a respected or beloved name associated with your nonprofit can inspire other donors to give, expanding the nonprofit’s base of support.
- Adds excitement and camaraderie to a capital campaign. Naming is a way to bring a lot of donors together in support of a major project such as a new building. Donors and fundraisers can get excited by the opportunity for many people to participate in accomplishing something big together – and seeing their names throughout the new building in recognition of a community or network of supporters.
Creating a menu of naming opportunities for nonprofit fundraising
Creating a menu of naming opportunities is one piece of a fundraising plan. Capital campaigns often employ a menu of naming opportunities at different contribution levels. Here are some tips for creating a menu of naming opportunities:
- Brainstorm. The classic example of a naming opportunity is a building. The entire building can be named for a leadership donor. But beyond that, there are many additional naming opportunities within the building. Here are some ways to come up with a list of naming opportunities:
- If the building already exists, do a walk-through and look for all of the different spaces and building elements that could be named.
- If you’re raising funds to construct a new facility, visualize it, perhaps with the help of architectural plans. Make a list of all the possible naming opportunities.
- Here are some ideas to get you started: special rooms can be named, such as a lab, classroom, gallery, or auditorium. A hallway or foyer can be named. Each stepping stone in a garden, or garden benches, or the entire garden. All of these things can be naming opportunities.
- Budget and plan. Figure out the numbers in relation to your overall fundraising plan. How much do you need to raise? What are your goals – e.g., how many donors at each giving level do you need to fund the entire project? How many stepping stones (or theater seats, or classrooms, etc.) do you have available for naming? This information will help you determine the value of each naming opportunity.
- Your menu of naming opportunities can be a public or an internal document. The menu of naming opportunities may be a public document that is shared with donor prospects, but it is often an internal document that guides fundraisers as they prepare to make asks of donors.
- Reminder: The contribution amounts listed in a naming menu are not a dollar-for-dollar match of the cost of the named facility or program. For example, a brick on the donor wall of a new museum building may be named for a contribution of $1,000 – but that doesn’t mean $1,000 is the cost of the brick or that the contribution is restricted to paying only for that brick or even that donor wall; rather, the $1,000 contribution supports the capital project as a whole, and is recognized by a plaque on a brick.
The downside of naming in philanthropy and fundraising
While naming a building after a beloved and well-respected person can provide great benefits to a nonprofit, the opposite also holds true: if a donor’s reputation is sullied by controversy, crime, or harmful actions, a nonprofit associated with that name is going to suffer some reputational damage, too.
When considering a named building, scholarship, position, or program, a nonprofit should give careful thought to this. Is this a person your organization or venue wants to be associated with for the long term? Do you have options outlined in the naming agreement for removing the name if certain events occur – for example, if the donor is convicted of a crime or takes a high-profile public stance that is at odds with the nonprofit’s mission?
Funders should also take some time to consider how comfortable they are with the prospect of being affiliated with the nonprofit for many years to come. Inside Philanthropy offers advice for donors considering naming opportunities in our Donor Advisory Center.
