A few days ago, my researcher was discussing their fundraising efforts with a global nonprofit, and was informed that the organization does not accept gifts that could compromise its integrity or place the charity in an awkward position, which which one is good The charity understands that it must adhere to and remain true to its mission, even if it means the loss of donor funds. Later, I came across an article on Nonprofit 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 Blackstone founder Stephen Schwartzman changed the name of the New York City Public Library on Fifth Avenue to The Stephen A. Schwarzman Building. In his mind, this corporate titan stamped his name on a New York City landmark of historical significance. She’s not the only New Yorker who feels the institution’s legacy 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 was looking to donate $25 million towards a technology center and also wanted to get approval from the contractors hired for the technology center to be built. This time, the community rebelled.

Change.org Petition

As noted in the article mentioned above, a petition on Change.org read: “Is $25 million the price you put 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’s a gift to himself. Selling himself 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 to have their names placed on buildings, rooms, libraries, and even on the renaming of organizations. However, appointment opportunities are a balance that must 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 too broad than the $25 million Schwarzman was offering.

Nonprofit Leadership

I have to wonder if the community wouldn’t have reacted so negatively to the announcement that the school was going to be renamed if someone in the school’s leadership position (perhaps the school board or principal) had asked Schwartzman what would you 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 rename the high school if not for the pushback.

Management of appointment opportunities

Although I have never met Schwarzman, by all accounts he is a demanding and exacting person who expects to win. However, nonprofit leaders must consider their institution’s history and significance within the community before agreeing to terms set by donors in exchange for a significant donation. I realize that it can be challenging to say “no” to a lot of money, especially if it can create a huge impact, but the reality is that communities and the public don’t like to give in to the interests of money.

• If you have a donor in your community who is looking to make a game-changing donation, don’t jump in and 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 the name of your organization 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? Would you be able to receive the gift with integrity?
• Consider the amount of the gift versus the opportunity costs of the appointment. In other words, if you are asked to change the name of your institution, is the donation important enough to reciprocate with such an action and all you stand to lose, including the goodwill and perhaps support of other donors?

Perhaps what happened to Abington High School is the start of a trend where the public has finally grown tired of capitalists emblazoning their names on institutions without regard to the organization’s history and legacy within the community? ? Only time will tell if that’s the case, but it’s nice to know that there are organizations that don’t dismiss history and legacy so easily.