Establishing Names for Buildings & Activities Policy #201

Policy #201 Approved: September 23, 2016
UNIVERSITY OF NORTH CAROLINA SCHOOL OF THE ARTS
Establishing Names for Buildings & Activities Policy
Policy #201
Source of Authority: UNC Code ยง 702;
UNC Code Appendix 1, Arts. VI & VII
Revision Authority: Board of Trustees
History: First Issued: September 23, 2016
Related Policies: Gifts of Art Policy #203;
Facilities Use Policy #402;
Solicitation Policy #204
Responsible Offices:

Advancement
UNCSA Foundation
Finance
Facilities
Chancellor

Effective Date: September 23, 2016

I.  Purpose

The University of North Carolina School of the Arts (UNCSA) believes that establishing clear and consistent policies for naming buildings and activities encourages stronger relationships among representatives of the University, donors, and advisors.  The University has therefore outlined and adopted these policies to describe and guide the naming of buildings and activities of the University of North Carolina School of the Arts.

II.  Scope

This policy applies to the naming of all facilities, and components of facilities, and activities at UNCSA.

III.  Policy

Section I:  Responsibility and Procedure for Naming Facilities and Activities

     A.  Naming Responsibility:  The act of naming a facility or activity shall be that of the Board of       Trustees, acting after receiving the recommendation of the Chancellor.  Benefactors or honorees         should be informed throughout the naming discussions that final naming approval for all                   University facilities and activities rests with the Board of Trustees.

     B.  Chancellor's Responsibility:  Subject to the responsibilities of the Board of Trustees, the             Chancellor shall have responsibility and authority with respect to and is an essential participant         in all naming actions.

1.  No facility or activity may be named without the early knowledge and prior approval of the Chancellor.  The Chancellor shall endeavor to determine that the proposed action is consistent with the interests of the University, to assure that the amount of the contribution warrants the action proposed, and to maintain equity in the relationship of donations for similar naming actions.

2.  For academic activities, the Chancellor shall also seek and receive the advice of representative members of the faculty, staff, and students of the unit that is directly affected by the proposed naming action before acting on the proposal.

3.  The Chancellor may recommend exceptions to any of the following naming policies, subject to approval of the Board of Trustees and after consultation with the University Leadership when appropriate.

C.  Actions:  Proposed contribution levels for naming facilities and activities, as well as information about potential benefactors or honorees, must be routed through the responsible Dean or equivalent officer to the Chancellor before naming opportunities and/or gift levels have been discussed with prospective benefactors or honorees.

1.  Instructions for submitting naming requests to the Chancellor are available from the Office of Advancement.

2.  After naming has received final approval from the Board of Trustees, the requesting school or unit should immediately contact the University's Facilities Department to ensure that the naming is communicated to University data systems and to the emergency response groups that serve the University.

3.  Depending upon the nature and scope of the facility or activity naming, a broader communications plan may need to be initiated by the requesting school or unit to ensure that other units on campus are aware of the new or changed name.  If the message is to be communicated broadly externally, the requesting school or unit should coordinate with the Office of Communications.

4.  Exterior and/or interior signs for a naming must follow the University's guidelines for signage.  If a naming is part of new construction or a major renovation, the designated contact in Facilities Planning and Construction will obtain signs.  Otherwise, Facilities Services will produce and install regulation signs.

D.  Review:  The naming policy shall be reviewed periodically by the Office of Advancement with all recommended changes requiring approval by the Chancellor and Board of Trustees.

Section II:  Naming Facilities and Activities

 A.  Purpose, Propriety, and Due Diligence:  The act of naming a University facility or activity for a person, a family, or an organization is the conferral by the University of a high conspicuous honor, bestowed upon those who have made a substantial and sustained contribution to the University or have brought special distinction to the University, to the State, or to society at large by services rendered.  The act of naming a facility or activity is to be taken discreetly, advisedly, soberly, and with concern for how that action will be viewed in the retrospect or decades.  In recommending the conferral of a naming honor on individuals or organizations, the institution shall evaluate the whole legacy of those individuals or organizations on the basis of standards relevant to the honoree's own time.  In the case of historical persons or entities, it is constructive also to view the proposed naming by contemporary standards to ensure that the naming is appropriate.

1.  It is the policy of the University that facilities or activities of the University may be named for individuals or organizations in consideration of financial contributions made to the University.

2.  A facility or activity may be named for a University faculty member, staff member, administrator, alumnus or trustee, or for a public servant or elected official, who is being honored solely for services rendered to the University, state, nation, or society-at-large.  Great care must be exercised in bestowing this honor because of the limited number of facilities and activities that require the private financial support that ordinarily generates a naming honor.  Moreover, the consideration for a naming solely for service shall not be undertaken until that person (1) shall have been deceased for not less than one year or (2) shall have been retired, resigned, or otherwise separated from service of or to the University for not less than one year.  If, however, a proposed naming under the provisions of the paragraph is in response to a financial contribution, the requirement of a delay shall not apply.

B.  Naming Facilities

1.  "Facility" means every building, addition, space in a building, outdoor space (such as garden, court, plaza, memorial, or marker), street, and other tangible and relatively permanent feature located on University property.

a)  Naming opportunities may include (1) new facilities that are to be constructed or acquired, (2) existing facilities that are undergoing major or minor renovations, or (3) existing facilities that are not undergoing renovations.

b)  If the facility is a permanent outdoor memorial or marker to honor persons and organizations, the requesting school or unit shall be governed by the protocol that is consistent with the University's standards and procedure for place of permanent outdoor memorials and markers on campus.

2.  Corporate or other organization names may be used to name any University facility.  As with individuals honored with facility naming at the University, corporations or organizations proposed for facility namings should have a positive image and demonstrated integrity.

a)  In the instance of corporate or organizational namings of facilities, additional due diligence should be taken to avoid any appearance of commercial influence or conflict of interest.

b)  Signage reflecting a corporate or organizational naming of a facility must conform to all University signage guidelines and may not include the organization logo or other components of branding.

3.  A gift for naming a facility ordinarily should equal:

a)  At least one-third of the total project cost for constructing or acquiring the new facility; or

b)  At least one-third of the total project cost for renovating an existing facility; or

c)  At least one-third of the portion of the total project cost that is to be raised from the private sector if State or other funds are funding a portion of the project cost for a new or renovated existing facility; or

d)  At least one-third of the replacement cost of an existing facility not undergoing renovation.  Typically, but not always, three-fourths of a gift to name an existing facility not undergoing renovation will be in the form of endowment, preferably unrestricted endowment, to the University unit.

4.  When a facility to be named is closely related to a school or department, representative members of its faculty, staff, and students shall be consulted before the Chancellor or Board of Trustees acts on the naming proposal.

5.  Financial contributions resulting in the naming of a facility may be made to an affiliated foundation, but these contributions - excluding expendable contributions, which are temporarily held in University money market accounts - shall be invested in and managed by the University of North Carolina School of the Arts Foundation, Inc.  If the University is constructing or renovating a facility, then funds will be transferred to the University.

C.  Naming Activities 

1.  "Activity" means every school, department, center, institute and other organizational entity of the University.

2.  Corporate or other organization names may not be used to name a university activity.

3.  A gift for naming an activity ordinarily should:

a)  Equal at least three-fourths endowment for the benefit of that unit, preferably with a portion of that amount in the form of unrestricted endowment, and

b)  Be determined by the size, operating budget, national ranking, and visibility of the unit, as well as naming amounts of peer activities in the discipline or on the University campus when available, and

c)  Be substantial and significant, even transformative in nature, enabling the unit to improve its competitiveness or distinction, or perhaps enabling the establishment of a new program within an existing unit.

4.  When an activity to be named is closely related to a school or department, representative members of its faculty, staff, and students shall be consulted before the Chancellor or Board of  Trustees acts on the naming proposal.

5.  Financial contributions resulting in the naming of a facility may be made to an affiliated foundation, but these contributions - excluding expendable contributions, which are temporarily held in University money market accounts - shall be invested in and managed by the University of North Carolina School of the Arts Foundation, Inc.  If the University is constructing or renovating a facility, then funds will be transferred to the University.

D.  Status of Contribution at the Time of Naming

1.  When a facility or activity is to be named in consideration of a financial contribution, the gift shall have been received by the University or affiliated foundation, or its future receipt shall be assured through the appropriate signed gift agreement, before a naming shall be taken, as follows:

a)  Pledges to be made over a period of time, typically up to five years, are acceptable for current naming of facilities and activities when at least 50% of the pledge amount has been received and a signed pledge payment agreement for the remainder is also in hand.

1)  If the pledged donation is to name new construction, renovation, or other projects with cash-flow considerations, the timing of the pledge payments should be such that sufficient current dollars are available to cover project costs.

b)  Irrevocable planned gifts may generate current naming of facilities and activities if current cash flow considerations are not an issue for the requesting facility or unit.  Irrevocable planned gifts will be credited at their present value and particular emphasis will be given to the predictability of the long-term value of the irrevocable deferred gift.

c)  Combinations of revocable planned gifts and cash may occasionally generate current naming opportunities under the right circumstances.  Each combination request must be explained fully and a case made for the appropriateness of the naming given the specifics or a particular gift.  Particular emphasis will be given to the cash flow requirements of the requesting facility or unit, the predictability of the long-term value of the revocable deferred gift component, and the predictability of its receipts.

E.  Duration and Modification of Namings

1.  The duration of a benefactor's or honoree's name on any facility or activity ordinarily continues for as long as the facility or activity is used in the same manner or for the same purpose for which the naming occurred.  Any naming made pursuant to this policy shall remain in effect until such time as the University determines the facility has exceeded its useful life or the facility's continued use has become impossible or impractical.  Upon demolition, replacement, substantial renovation, redesignation or purpose, or similar modification of a named facility or activity, the University may deem that the naming period has concluded.

a)  The appropriate University representative will make all reasonable efforts to inform in advance the original benefactors or honorees, or their surviving family members, when the naming period is deemed to have concluded.

b)  The University may, but is not required to, provide the appropriate perpetuation of the previous name.  Perpetuation of the original name in an equivalent naming is not required.  Appropriate perpetuation of previous names may include, for instance, a plaque in or adjacent to new and renovated facilities.

c)  In the event of a corporate or organization naming of a facility, if the corporate or organization name changes, the University may deem that the naming period has concluded.  For additional considerations when corporate name changes occur, see Section E.5. below.

2.  Renaming.  When the benefactor's or honoree's naming period has concluded, the facility or activity may be renamed, with original name removed, in recognition of new gifts, subject to any specific terms and conditions set forth in the original naming agreement and subject to the guidelines in Section E.1. above.

3.  Joint or Hyphenated Naming.  In exceptional circumstances, additional names may be added to a facility or activity in recognition of an additional gift even if the prior benefactor's or honoree's naming period has not been concluded, subject to any specific terms and conditions set forth in the original naming agreement.  Hyphenation is one method for jointly naming a facility or activity.

4.  Term Naming.  In appropriate instances, most often involving a corporate benefactor, a naming may be granted for a pre-determined fixed term, usually 3-5 years.  At the end of the term, the name of the facility or activity shall expire but may be renewed with the same or a new name.  The gift agreement should clearly specify the period of time for which the facility or activity will be named.

5.  Benefactor or Honoree Name Changes.  If a benefactor or honoree requests a change to the name of a facility or activity (e.g. due to a divorce or merger), the University will consider the request.  If approved, all replacement signage and other related costs shall be at the donor's or honoree's expense.  For additional considerations when corporate name changes occur, see also E.1.c. above.

6.  Revocation of Naming for Approval or Conferral.  In certain circumstances, the University reserves the right, on reasonable grounds, to revoke and terminate its obligations regarding a naming, with no financial responsibility for returning any received contributions to the benefactor.  These actions, and the circumstances that prompt them, may apply to an approved naming that has not yet been acted upon or to a conferred naming.

a)  If the benefactor's or honoree's reputation changes substantially so that the continued use of that name may compromise the public trust, dishonor the University's standards, or otherwise be contrary to the best interests of the University, the naming may be revoked.  However, caution must be taken when, with the passage of time, the standards and achievements deemed to justify a naming action may change and observers of a later age may deem to justify a naming action may change and observers of a later age may deem those who conferred a naming honor at an earlier age to have erred.  Namings should not be altered simply because later observers would have made different judgments.

b)  If the benefactor fails to maintain payments on a pledge upon which the naming was bestowed, the naming may be revoked.

c)  If a planned gift upon which the naming was bestowed does not result in the value agreed upon, the naming may be revoked.

Section III:  Effective Date (TBD)

1.  Sections II.B.3 and II.C.3 (related to gift amounts and gift designations) and Section II.D (related to the status of contribution) do not apply to any naming that has been approved by the University Board of Trustees as of the effective date of this policy or that are currently in negotiation as of the effective date.

2.  Section II.E (related to the duration and modification of naming) applies retroactively to all existing namings at the University unless the provision of Section II.E. conflict with the terms of the previously signed naming agreement for a facility or activity.