It can be uncomfortable for fundraisers to set boundaries with major donors. However, a naming rights policy approved by the board of directors that sets parameters for naming gifts can go a long way in setting reasonable expectations from the outset. Charities wishing to attract significant donations by offering naming rights should develop a naming policy that applies to all gifts of naming rights. A formal written policy facilitates the setting of donor expectations at an early stage and resistance to unreasonable donor demands. According to the Pennsylvania Land Trust Association, a written agreement is required for: Is granting naming rights to building and program donors good philanthropy? Tufts University and other nonprofits recently removed the Sackler name from their buildings and programs because of the family connection to the opioid crisis. The Smithsonian Institute, on the other hand, was forced by a donation agreement to maintain the name “Arthur M. Sackler Gallery” permanently. [1] The University of Pennsylvania School of Law was criticized when it announced its name change in honor of the generous $125 million donation from the W.P. Carey Foundation. [2] Such news sparked a public outcry among law students and alumni who feared that “Carey Law” would not have the same notoriety and prestige among employers as the well-known name “Penn Law.” [3] This resource contains useful information on why a gift contract may be necessary and important, and how to get started with a gift contract. The next section, titled “* Gift Contract Template,” contains a gift agreement template based on an agreement created by the Collier County Community Foundation.

the article by deals here with considerations in the negotiation and design of gift contracts. Just as a not-for-profit organization must keep accurate records of donations received, a donor must keep records of the donations it makes, particularly with respect to tax season. Having an accurate donation agreement and other financial records on file will help keep the nonprofit and donor on the same page. A moral clause or moral clause is a small but important segment that you can add to your gift contracts. A moral clause is used to define certain circumstances that would be embarrassing or detrimental to an organization`s reputation and values. According to Lynne Wester, nonprofits need to protect their organizations from unreasonable risks. Most not-for-profit organizations rely on the goodwill of the public to attract donors. Having a close connection with someone whose name has been severely damaged can tarnish the reputation of the nonprofit and affect their ability to get support. *This has also been included in section 11 of the gift contract template above. The extent of the naming rights granted should be carefully considered and a number of legal situations that occur frequently should be taken into account.

In most cases, this means entering into a written contract that addresses at least the following. To the extent that the agreement grants the donor future consent rights over the display of the name, an organization may wish to set time limits on the necessary permits and the donor does not unreasonably refuse consent. Some donors may also want to ensure that their naming rights retain some meaning, even if other donors are granted different naming privileges. To the extent that the agreement addresses these issues, the nonprofit may be able to avoid future conflicts or disappointments with its most important and established supporters. Ellis Carter is a nonprofit attorney for Caritas Law Group, P.C., licensed in Washington and Arizona. Ellis advises nonprofit and socially responsible companies nationwide on corporate, tax and fundraising regulations. Ellis also advises donors on large donations. To schedule a consultation with Ellis, call 602-456-0071 or email us using our contact form. To avoid the Smithsonian debacle, charities should limit the length of time they respect naming rights. Forever is a very long time. Buildings are collapsing, programs are changing to disappear completely, and the only thing guaranteed is change.

In addition, time-limited agreements allow the charity to resell the naming right in the future – when the original donation is long gone. [3] Here is an example of a real estate gift contract created by Tulsa County. This Agreement, duplicated between __ “A gift [or donation] agreement may be used to ensure that one can rely on a donor`s promise, set the expectations of the donor and receiver, and avoid misunderstandings.” –, Pennsylvania Land Trust Association Similarly, a named item may cease to exist, cease to exist, cease to exist, cease to exist, no longer be useful or have a name rights agreement signed. have an impractical state. Some organizations may choose to transfer the name to a new item with the donor`s permission. others may claim that the right to a name expires. A donation agreement may also specify successors of the donor, such as family members or other representatives, who may exercise the necessary consent rights in the event that the donor is deceased or otherwise unable to consent. I, the undersigned donor, the sole and absolute owner, permanently transfer, transfer and transfer to Elizabethtown College, its agents and successors all right, title and interest in and to the materials described below, subject to the terms and conditions set forth herein. Not-for-profit organizations that grant naming rights to donors should consider adopting an organizational policy designed to ensure consistent policies and practices with respect to the naming of opportunities. Such provisions could be included in a broader gift acceptance policy, or they could include an independent organizational document. By establishing uniform rules and practices regarding naming rights, the Directive can help protect important relationships with donors while limiting certain areas of negotiation around a particular donation.

An in-depth naming rights policy should describe organizational practices regarding important naming rights considerations, such as: Look here at an example of a donation agreement for the University of Alabama at Birmingham provided by the Association of Donor Relations Professionals. .