Naming Rights: Which one are you talking about?
Philanthropic Gifts or Corporate Sponsorships
by Terry Burton
The words "Naming Rights" are causing some confusion among volunteers, fundraisers, donors and sponsors.
Here are some keywords to help you out.
The words "Naming Rights" are often used in the private sector and the nonprofit and it can lead to some confusion.
As you talk to staff, donors and volunteers, it would be helpful to all if you distinguish between the two types of
Naming Rights agreements.
Naming Rights PH
This label could be used to identify a philanthropic gift that was recognized by the non-profit with the granting of naming rights.
The nonprofit organizations may confer "Naming Rights" to a donor in appreciation for a major gift. In this case the "Naming Rights"
refer to the recognition bestowed upon the individual, corporation, foundation or other funding agency that made a philanthropic gift.
One that comes with no hooks attached or additional expectations from the donor over and above the usual name recognition that
is the custom of the organization.
Naming Rights SP
Naming Rights SP refers to sponsorships that are the second type.
This kind of financial support can be found in the private sector, nonprofit sector, municipalities and government organizations.
Naming Rights SP as I call them, are financial agreements to name a property in exchange for a specified amount of money for
a stated period of time.
Professional sports has numerous examples around the globe of naming rights agreements for a limited period of time such as
5 years, 10 years or 20 years. The length of the naming rights period depends on the naming agreement between the two parties.
One of the interesting trends has been the acquisition of naming rights from nonprofit organizations, school boards and other groups
outside of the private sector by private sector companies. The acquisition of these naming rights are all about building and enhancing
brand named and not philanthropy or charitable support.
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Terry Burton
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