Tours Travel

Is the tide of nonprofits selling to donors turning?

A few days ago, my researcher was discussing their fundraising efforts with a global nonprofit, and she was informed that the organization does not accept gifts that could compromise its integrity or put the charity in an awkward position. which is a good thing. The charity understands that they must stick with and stay true to their mission, even if it means the loss of donor funds. Later, I found an article on Non-profit quarterly titled “The Concept of Negative Goodwill: When Do Naming Rights Cross the Line?”

New York City Public Library

I smiled because the same researcher is a New Yorker who has long complained that Stephen Schwartzman, founder of Blackstone, changed the name of the New York City Central Public Library on 5th Avenue to The Stephen A. Schwarzman Building. In his mind, this corporate titan stamped his name on a New York City landmark with historical significance. She is not the only New Yorker who feels that the legacy of the institution has been tarnished.

Abington High School

In the article, here was Schwarzman again, this time in Pennsylvania, looking to change the name of a prized high school from Abington High School to Abington Schwartzman High School. He wanted to donate $ 25 million for a technology center and he also wanted to have the approval of the contractors hired for the technology center that would be built. This time, the community rebelled.

Change.org petition

As noted in the aforementioned article, a petition on Change.org read: “Is $ 25 million the price you place on the spirit, pride, history and memories of the thousands upon thousands of alumni who have attended Abington Senior High? School? ” Another petition read: “A tribute to this man’s excessive ego is not a gift to the school, it is a gift to himself. Selling for money? What kind of message does that send to our teens?”

Negative goodwill

Over many years, there have been many other examples of major donors asking for their names to be placed on buildings, rooms, libraries, and even name-changing organizations. However, naming opportunities are a balance to be considered by the institution and its legacy. In the case of Abington High School, the school had a significant legacy in the community, and it was too deep and much broader than the $ 25 million Schwarzman was offering.

Nonprofit Leadership

I wonder if the community would not have reacted so negatively to the announcement that the name of the school was going to change if someone in the leadership position of the school (perhaps the school board or principal) had asked Schwartzman to reconsider. ? My guess, based on the explanation, would be that once Schwartzman committed the $ 25 million, the school would have gone ahead with plans to change the high school’s name had it not been for the rollback.

Handling naming opportunities

Although I have never met Schwarzman, by all accounts, he is a demanding and hard-working person who hopes to win. However, nonprofit leaders must consider the history and significance of their institution within the community before accepting the conditions set by donors in exchange for a significant donation. I realize it can be challenging to say “no” to a large amount of money, especially if it can create a huge impact, but the reality is that communities and the public do not like to bow to wealthy interests.

  • If you have a donor in your community who is looking to make a game-changing donation, don’t just accept the gift. In fact, be prepared to walk away from it, especially until you fully understand the terms.

  • If there is a request that a building or even your organization’s name be changed to that of a major donor, think carefully about the pros and cons of this particular action. Would it be good for your community? Would it make sense for the organization? Could you receive the gift with integrity?

  • Consider the amount of the gift versus the appointment opportunity costs. In other words, if you are asked to change the name of your institution, is the donation significant enough to be commensurate with that action and everything you may lose, including goodwill and perhaps support from other donors?

Perhaps what happened to Abington High School is the beginning of a trend in which the public has finally grown weary of capitalists brandishing their names at institutions without regard for the organization’s history and legacy within the community? ? Only time will tell if that’s the case, but it’s good to know that there are organizations that don’t dismiss history and legacy so easily.

Leave a Reply

Your email address will not be published. Required fields are marked *