I would say that every donation carries with it the possibility of some benefit to the donator, no matter who does it. There's always the public relations or social benefit or being seen as "doing a good thing". Without this benefit, some amount charity might go away. Does it matter that people or organizations give because they see benefit to themselves in it? I think not, and I think the tax law is set up specifically to turn a blind eye to this. In that respect, it's not fraud at all, it's how the system is designed to work to promote charitable giving.

Also, since to my understanding most of this "advertising" for donations which results in naming a building is to individuals, it also depends on how you classify advertising. Is establishing a legacy for yourself so you're looked on favorably after you're dead advertising? We generally don't call it as such, but even it is, so what? Does is promote more good or harm to society in general? That's the only metric we should measure it by.