For years, nonprofit organizations have motivated high-capacity donors to make leadership gifts by leveraging physical spaces or prestigious endowed positions as naming opportunities, especially during capital and/or endowment campaigns. Historically, these naming rights have been offered in perpetuity, with the legacy of a one-time gift often outlasting a supporter’s relationship to an organization – or outlasting the useful purpose of a space or building altogether.
Sunset clauses, which are growing in popularity, formally limit the length of a naming right to a prespecified period of time, giving nonprofit organizations the opportunity and flexibility to recognize major gifts without tying up valuable naming opportunities in perpetuity.
In response to an uptick of energy and conversation surrounding sunset clauses, Campbell & Company recently completed a series of qualitative conversations with 10 renowned nonprofit arts and culture organizations from across the country, with annual revenues ranging between $12 million and $207 million. These conversations took place in an effort to better understand the ways in which these organizations have used sunset clauses historically and how they plan to use them moving forward.
Please click here to view the Time-Limited Naming Opportunities for Arts & Culture Organizations report.
Questions? Contact Melissa Berliner