Why They Don't Want $15 Million

For the first time in my recollection, one of the ethical debates that constantly turns up in discussions of fundraising has finally found a home in the real world. This week the University of Iowa turned down a grant from the Wellmark Foundation in the amount of $15 million in exchange for a naming opportunity. In this case the Board of the University went to Wellmark and offered the opportunity to name the School of Public Health if the corporation would provide funding. The Corporation’s Board voted to give the University up to $15 million if it would rename its school the Wellmark Blue Cross and Blue Shield College of Public Health. Administration and faculty refused, saying that his would look like Wellmark was buying the University. They said naming it the Wellmark Foundation College of Public Health would be okay, but not the Wellmark Blue Cross and Blue Shield College of Public Health.

I’m a little confused about this decision. I thought this is what naming opportunities are all about. In this case, where is the ethical issue? The classic one that comes up all the time is what if Altria, the big tobacco company, offered to sponsor your little league team for a million dollars if you would advertise Marlboro cigarettes at each game. You would probably turn them down. But what if your program were a struggling inner-city agency to help homeless girls find shelter? What if Altria offered you a million dollars per year for five years if you would put their logo on your literature? Would this be a hard decision?

Here we have a distinguished university deciding to refuse a gift from an established insurance company. Where’s the harm? Apparently it’s the image of a university turning to a commercial enterprise for help. Their excuse is that 80% of their research money comes from outside funding, so this would look like they're allied with one funder. This doesn’t make sense. Most institutions grant naming rights to major funders, if they want it. Why do they want it? When it’s an individual, it’s because naming is a form of recognition of their generosity. And some people see it as a form of immortality. If it’s a corporate entity, it’s because a gift to an institution of higher learning shows that the entity cares about the education of future professionals and that it’s willing to share some of its profits in the public interest.

Why be disingenuous? Where there’s a need and someone or something willing to fill that need, why not grant some quid pro quo to make everybody happy? I think the University is making a big mistake. They may not see many other corporations making them offers in the future.