Okay, yes, we know. Naming infrastructure and gift acceptance policies sound about as exciting as watching paint dry. But here’s the thing: every few months, we all see a cringe-worthy headline about a nonprofit that failed to do its homework. And while we’re all grateful it’s not our organization making the news for the wrong reasons, the reality is, it could be any of us if we don’t pay attention.
So what’s holding us back? Why haven’t we all rolled up our sleeves and set up the right systems? Spoiler alert: it’s not that hard, and many have gone before us, leaving a trail of examples to follow.
Here are 5 steps to get you started and help ensure your organization stays out of the headlines.
1. Understanding Naming Opportunities (And Why You Should Care)
Naming opportunities may not be party conversation starters, but they’re a big deal in fundraising. They give donors the chance to leave a lasting legacy while providing your organization the funds to keep doing good. In other words, they’re a win-win if you manage them right.
2. The Importance of a Naming Infrastructure (AKA How Not to End Up in the News)
Imagine offering a naming opportunity without clear guidelines, and then, surprise! Your donor’s expectations don’t match what you can actually deliver. Cue the drama. A well-oiled naming infrastructure is your safety net. It keeps everything consistent, transparent, and fair—so you can focus on doing good, not damage control.
Consistency: Think of your naming policy like a trusty recipe. Every time you follow it, you get the same delicious result. No one likes unexpected surprises, especially not your donors.
Transparency: Donors should never feel like they’re navigating a maze blindfolded. Lay out the criteria for naming opportunities clearly, so everyone knows the rules.
Fairness: Treat every donor like they’re your favorite (Yes, even the ones who call at 4:59 PM on a Friday). Your policies should reflect that same level of respect and appreciation.
3. Developing Naming Policies (Because Common Sense Isn’t All That Common)
Naming policies aren’t just for show—they’re the guardrails that keep your fundraising efforts on track. Here’s what to include:
Gift Thresholds: Let’s be real—naming a park bench and naming a building aren’t the same thing. Be sure to set clear thresholds for different naming opportunities so there’s no confusion.
Duration of Naming Rights: Naming rights forever? For the next 20 years? Or the useful life of the building? Spell it out so there’s no awkwardness later.
Revocation and Renaming: Sometimes, things change. Set guidelines for when you might need to revoke or rename a space. Not all donors behave all the time, sometimes we need to remove a naming, and we need policies in place to support this.
Balancing Donor Recognition with Fundraising Needs: You want to make donors feel special, but you also need to keep the lights on. Structure naming opportunities in a way that encourages additional gifts without overpromising.
4. The Role of Gift Acceptance Policies (AKA How to Say “Thanks, But No Thanks” Gracefully)
Not all gifts are created equal. Some come with strings attached, while others might not fit your organization’s mission. Gift acceptance policies help you navigate these tricky waters with grace.
Alignment with Mission: If it doesn’t fit, don’t force it. Make sure all accepted gifts align with your organization’s mission and values.
Valuation of Non-Cash Gifts: Sometimes, a donor’s idea of value doesn’t match reality. Establish clear guidelines for how you’ll value non-cash gifts like real estate or stock.
Legal and Ethical Considerations: Donor intent is crucial, but so is your organization’s reputation. Address potential legal and ethical issues upfront so you don’t get blindsided later.
5. Communicating Naming and Gift Acceptance Policies (So Everyone’s on the Same Page)
Policies really don’t matter if no one knows about them. Make sure your naming and gift acceptance policies are easy to find and understand.
Donor Conversations: Talk to your donors early and often about naming opportunities, and gift acceptance policies. It sets the stage for a positive relationship and avoids misunderstandings.
Internal Training: Your team is your first line of defense. Make sure they’re well-versed in your organization’s policies so they can answer questions and keep everything running smoothly.
Public Disclosure: Consider putting your policies on your website. It’s a fantastic way to show transparency, and build trust with donors.
Conclusion
Let’s face it—no one wants to be the nonprofit making headlines for all the wrong reasons. A well-structured naming infrastructure and clear gift acceptance policies can help you avoid that fate. By taking the time to develop and communicate these policies, you’ll be setting your organization up for long-term success and building lasting relationships with your donors.
Call to Action
Ready to get your shop in order? We’re here to help you create naming and gift acceptance policies that not only protect your organization but also inspire generosity. Purchase a recording of our most recent webinar on namings, or reach out to us directly to learn how we can help. Let’s make sure the only headlines your organization makes are about all the good work you’re doing every day!
Suggested Readings:
PERPETUAL NAMING RIGHTS: Three Cautionary Tales and One Essential Piece of Advice
Charity Naming Rights, How to do it Right
https://charitylawyerblog.com/2021/06/28/charity-naming-rights-how-to-do-it-right/
Mega-Gift Fiasco at Florida A&M Shows Nonprofits What Not to Do
https://www.philanthropy.com/article/mega-gift-fiasco-at-florida-a-m-shows-nonprofits-what-not-to-do
Philanthropic Harm: How “Doing Good” Can Go Bad
https://johnsoncenter.org/blog/types-of-philanthropic-harm-a-working-list/
