Policy Name: Naming Gifts Policy
Policy Number: 06-04-001
Accountable Senior Administrator: Chief Development Officer/Foundation Executive Director
Issued: February 22, 2022
Last Updated: February 22, 2022
In recognition and appreciation of their generosity, donors who make certain types of charitable contributions to New Jersey City University (University) or New Jersey City University Foundation, Inc. (Foundation) for the benefit of the University, may be offered the opportunity to select the name of the program, facility, position, or entity being funded by their gifts. The policy outlines the types of gifts that may carry naming rights, and provides information related to the minimum amount required for specific naming gifts, name approval and duration, donor recognition, and other terms.
The Naming Gifts Policy helps ensure that gifts with associated naming rights are managed in a consistent manner. It is also designed to provide donors with equitable, consistent, and appropriate recognition and stewardship for their generous support, leading to lasting and mutually beneficial relationships with the University. This policy applies to all naming gifts secured by the University.
Individuals, foundations, non-profit organizations, businesses/corporations, and other entities that make charitable contributions to the University.
Donor: An individual, foundation, non-profit organization, business/corporation, or other entity that makes a charitable contribution to the University.
Charitable Contribution/Gift: As stated by the U.S. Internal Revenue Service (IRS), a gift to, or for the use of, a qualified organization. The gift is voluntary and is made without receiving, or expecting to receive, anything of equal value. Note: The University and the Foundation are qualified as charitable organizations under Section 501(c)(3) of the IRS Code.
Reinvestment: An endowed fund status whereby all of the fund's income is reinvested in the fund's corpus.
Distribution: An endowed fund status whereby a portion of the fund's income is distributed for spending, in accordance with the University’s endowed-fund spending practices and policies as they are adopted and revised from time to time by the University.
This policy applies to gifts with associated naming opportunities at the University as a form of recognition for the contributions of individuals or organizations to the University.
II. Types of Funds with Potential Naming Opportunities
A. Endowed: Endowed funds are designed to provide perpetual support to a designated area. To establish a named endowed fund, a gift must meet the funding minimum set by the Foundation in consultation with the President and the Board of Trustees of New Jersey City University (Board of Trustees). For current University named endowed fund minimums, contact the Foundation.
B. Non-endowed: In certain circumstances, current-use commitments can qualify for a naming opportunity. Many gifts to name physical entities are in this category.
III. Standard Designations for Naming Gifts
A. Physical Entity:
B. Non-Physical Entity:
IV. General Terms
A. Naming of a University asset or entity must be made in accordance with this policy and related procedures and meet all terms of the Foundation’s Gift Acceptance Policy.
B. The donor may select the name of the entity being funded, so long as the criteria set forth in this policy are met, and University approval is granted. Factors that may be considered by the University in determining the appropriateness of a name include:
C. Naming gifts do not confer the right to the donor to determine the use of the fund (e.g., the purpose or use of the named space, specific beneficiary of a student or faculty support fund, program curricula, and/or research outcomes).
D. A named entity may not be announced by any University unit prior to final approval as required by this policy.
V. Naming Gift Values
A. Endowed Funds:
B. Current-use Funds:
C. Physical Entities:
VI. Distributions from Endowed Funds Created through Gifts
A. Typically, an endowed fund will remain in reinvestment status until the fund reaches the University’s required endowed fund minimum for an endowment of that specific type, unless the donor agreement stipulates the fund should remain in reinvestment until a minimum greater than the University’s required endowed fund minimum is reached. Accumulated earnings and fund additions designated by the University, such as reinvested income, do not count toward meeting the required endowed fund minimum (i.e., only gifts count toward meeting the endowed fund minimum).
B. This provision notwithstanding, the University and President may request to convert the endowed fund to distribution status when the endowment reaches the minimum amount required by the Foundation to establish an endowed fund, as adopted and revised from time to time by the University's Board of Trustees, or when the University has received one-fourth of the value of the gift that established the endowed fund, whichever is greater. The Foundation will then work with the University’s Finance division to convert the endowed fund to distribution status.
C. A request for early conversion of an endowed fund from reinvestment to distribution that does not meet the threshold set in paragraph VI. B. above may be submitted to the Foundation, who will, in consultation with the President and the Board of Trustees, determine whether to grant the request.
VII. Naming Approval and Timing of Naming Activation
A. The Foundation manages the naming approval process, in consultation with the President, as appropriate.
B. Name approval may not be granted until the proposed name is known. If the donor does not wish to select the name to be applied when the gift is made, the University may accept the gift, with the name determined later, subject to the terms of approval outlined in this policy.
C. For binding, irrevocable gifts, a name may go into effect before the gift is paid in full, at the discretion of the Foundation, in consultation with the President.
D. For non-binding, revocable gifts, a name will not be activated until the gift is received.
VIII. Donor Recognition
A. The University places great value on recognizing and showing appreciation to donors for their generosity. Therefore, in addition to providing naming rights for eligible gifts, other methods of recognition may be applied, such as those outlined below. It is highly important that recognition be equitable and consistent based on gift type, amount, and designation, and that it adhere to established University standards.
B. Physical Recognition:
C. Other Recognition:
IX. Duration of Naming
A. Naming is generally granted for the useful life of the entity unless otherwise specified in the gift agreement (and subject to the terms of revocation as set forth in this policy).
B. For current-use gifts, naming terms, including duration, shall be set forth in writing by the Foundation in consultation with the University and donor.
C. If circumstances change so that the purpose for which the named entity was established is or needs to be significantly altered, is no longer needed/ceases to exist, or if a physical entity is replaced, significantly renovated or no longer habitable, the Foundation in consultation with the University will consult with the donor if possible, or the donor's estate, if practicable, to determine an appropriate way to recognize the original naming gift.
X. Revocation of Naming
A. The University may revoke a naming if any of the following conditions occurs:
B. Revocation decisions shall be made by the President and the Board of Trustees based on the recommendation of the Foundation.
C. The Foundation in consultation with the University shall make all reasonable efforts to inform the original donor or the donor's heirs/designees in advance of any revocation or change.
XI. Special Circumstances and Exceptions
Any special circumstances or requests for exceptions must be referred to the Foundation, who will determine the course of action, which may include consultation with the President and the Board of Trustees.
The University or the Foundation in consultation with the President and the Board of Trustees will address any violations of this policy, which may include consultation with the donor and revocation of naming opportunity.
Executive Director, NJCU Foundation