Some donors may not be willing to enter into an agreement limiting the scope of their naming rights, particularly when it comes to ending rights because of donor misconduct. To make these concepts more attractive, charities may consider developing a general name directive, which regulates all naming rights. The policy must be made available to the donor and referenced in a written letter confirming a gift or a similar letter. Charities can also draft a form donation contract and explain to donors that the agreement contains the language contained in all donation agreements. Will the granting of naming rights to donors of buildings and good philanthropy programs? Tufts University and other nonprofit organizations recently removed Sackler`s name from their buildings and programs because of the family opioid crisis link. On the other hand, the Smithsonian Institute was bound by a donation agreement to maintain the name „Arthur M. Sackler Gallery“ for the long term.  The University of Pennsylvania School of Law was attacked when it announced its name change in honour of the W.P. Carey Foundation`s generous donation of $125 million.  Such news caused widespread outcry from law students and alumni, who feared that Carey Law would not have the same notoriety and prestige among employers as the prestigious name Penn Law.
 First, a not-for-profit organization should fully understand the benefits it can offer a donor without diminishing the value of the donor deduction. Recognition of a donor`s contributions through naming rights is an excellent way for an organization 501 (c) (3) to pay tribute to the generosity of its donors without reducing their deductible contribution. The benefit a donor could receive from public recognition of his or her contribution – such as recognition in non-profit organization publications or the naming of the donor in a non-profit building or program – is generally considered to be incidental to the greater utility the organization offers to the general public. (See Rev. Mr. Rul. 77-367, 1977-2 C.B. 193). Such an agreement is treated as a gift, not a consideration, where the donor obtains a substantial economic benefit (for example. B tickets to theatre, musical or sporting events).