Development

A digital revolution for public radio fundraising

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Marketing consultant John Sutton has been forecasting what public radio will look like in 2018, and his predictions, published on his blog RadioSutton since February, have been provocative. Sutton is among the pubradio analysts who believe that federal funding “will be sharply reduced or gone in five years.” He also believes that digital listening will fragment the audience enough that eventually NPR will have to raise money directly from listeners or the current public radio economic model will collapse. Below, he lays out a proposal for overhauling public radio fundraising and how it makes both dollars and sense. Imagine a future in which listeners donate 26 percent more money to public radio at half the cost. Imagine that NPR has nearly $60 million more to invest annually in world-class journalism and development of new programs.

Is this imaginative exercise making you uncomfortable?

Development

Public radio tattoos make a comeback

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The latest package of public radio fundraising premiums allows devout listeners to temporarily brand their passion for their favorite shows on their forearms — or elsewhere. A set of eight rub-on tattoos in colorful vintage designs tout the titles On the Media, Fresh Air, Morning Edition, All Things Considered and This American Life. They’re offered to stations by longtime pubcasting premium distributor VisABILITY in Lyons, Colo. The temporary tattoos are the second to be created for listeners who want to express their support for public radio through body art. Ira Glass, whose cleverness in creating pledge-drive premiums helped to build station carriage for This American Life when it was a new public radio series, first approached  VisABILITY owners Janice Gavan and John Burke about pubradio tattoos in 1998.

Development

Benefits to multicasting pledge: new and lapsed donors respond

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After 16 months on the air, WQED-TV’s all-pledge multicast Showcase channel is steadily bringing in donations of around $16,000 a month for the Pittsburgh station. That may not sound that impressive, considering WQED receives an average of $16,675 from airing just one day of pledge programming on its primary broadcast signal. But WQED officials say the revenues, and the benefits, are adding up.

Development

Few ‘Magic Moments’ in March pledge

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Pledge results reported by public TV stations from recently concluded on-air fundraisers were down 20 percent to 25 percent from the March 2012 drive, according to Kristen Kuebler, director of station research for Arizona-based TRAC Media. For most stations, the March fund drive is typically the biggest of the year, and revenues generated from it influence budgeting for the next fiscal year. Stations reported to TRAC and PBS that audience response to the latest pledge shows was tepid at best. The top-performing show among TRAC’s client stations was Magic Moments: The Best of ’50s Pop, a program that was first released for public TV broadcasts in 2005. It brought in 8 percent of all pledges, below their strongest show from the March 2012 drive: a self-help special from motivational speaker Wayne Dyer, Wishes Fulfilled, that generated 11 percent of total dollars raised by TRAC stations.

Development

PRPD offers new round of trainings

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The Public Radio Program Directors Association will expand its training programs for stations this year and continue its Sense of Place studies of local audiences, with funding from NPR and the Millstream Fund. PRPD will offer three workshops based on the Morning Edition Grad School classes that it has offered in recent years. “New MEGS” will extend training to all newsmagazines, including All Things Considered and Weekend Edition, and is designed for hosts, news directors and program directors. The first workshop will be offered May 18 in Charlotte, N.C.

“JMEGS” (MEGS for Journalists) applies MEGS principles to journalism, focusing on selecting stories, interviewing, writing, planning newscasts and promoting news reports. JMEGS was piloted in 2009 but has not yet been implemented.

Development

Massachusetts’ WFCR adds to capital campaign with Cosby fundraiser

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New England Public Radio in Amherst, Mass., got a helping hand earlier this month from a famous friend when listener and local resident Bill Cosby staged a benefit performance for the station’s capital campaign. Cosby’s March 2 show at Symphony Hall in Springfield, Mass., raised $140,000 for the station, drawing more than 2,000 attendees who each paid from $37.50 to $75 to see the comic. The event stemmed from relationships between Cosby and various station staff that developed over the past few years. Cosby first got in touch Tom Reney, host of the station’s weeknight jazz show, says General Manager Martin Miller. Cosby and his wife then began donating money by sponsoring challenge grants during on-air fund drives, for which they were credited as “Dr. Bill and Dr. Camille.” The comedian visited the station in 2011 for an interview, and when he came back for a second interview, Miller discussed the station’s capital campaign with him.

Development

Panel urges IRS to revisit its ‘antiquated’ nonprofit rules

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Delays in conferring 501(c)3 status to startup nonprofit news organizations have stymied development of new models for producing community-based journalism, exacerbating the shortage of locally produced news coverage, according to a report released March 4 by the Nonprofit Working Group of the Council on Foundations. The group was created by the Council on Foundations with a grant from the John S. and James L. Knight Foundation to study the impact of the Internal Revenue Service’s approach to granting nonprofit status to media organizations. The report described the IRS’s methods of granting tax-exempt status as outdated and criticized the agency for hobbling efforts to establish new local newsrooms.

“Our main finding is that the IRS is relying on antiquated rules — rules that were created in the 1960s and 1970s to determine whether groups should be given tax-exempt status,” said Steven Waldman, chair of the Nonprofit Media Working Group. “Not surprisingly, they don’t match modern realities.”

The group recommended several fixes to the IRS, including that it revise its criteria determining nonprofit status to qualify news and journalism as “educational” under tax-exempt rules. It also recommended that the IRS prohibit nonprofit news organizations from sharing ownership with shareholders or investors.

Development

Looming sequestration cuts complicate CSG payments

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With the increasing likelihood that budget cuts once thought to be too big to take effect will slash spending across the federal government March 1, CPB is planning how to handle its payments to stations in the event that its $445 million 2013 appropriation is altered again.

Development

Houston station boosts security as DJ faces identity theft charge

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A volunteer DJ has been charged with stealing donors’ credit card information from a Houston radio station and using it to make personal purchases. Michael Whitfield was arrested in December after police found him in possession of credit card information taken from more than 300 donors to KTSU, a jazz station licensed to Texas Southern University in Houston. He is being held on $200,000 bond. Police began their investigation in July 2012 after a KTSU donor reported unauthorized charges on their credit card, and they traced them to an IP address to Whitfield’s apartment. Investigators have confirmed 25 cases of theft so far, according to Donna Logan, an assistant district attorney for Harris County, Texas.

Development

Second pubTV station pays fine for missteps handling federal grants

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When the U.S. Attorney’s Office for Massachusetts announced a settlement with Boston’s WGBH over its handling of $60 million in federal grant funds, it was the second time in two years that a major producing station had come under scrutiny by auditors for its handling of grant monies for public TV productions.

Development

WGBH settles with Justice Department over alleged mishandling of federal grants

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This item has been updated and reposted with additional information. WGBH has agreed to pay more than $300,000 in a civil settlement with the U.S Attorney’s Office to resolve allegations that it improperly tracked and accounted for federal grant money, The Associated Press is reporting. U.S. Attorney Carmen Ortiz told AP that from 2005–08 the Boston pubcaster maintained an inadequate accounting system for tracking grant expenditures. The settlement, announced Thursday, is for damages incurred by the National Science Foundation, the National Endowment for the Humanities and the National Endowment for the Arts. WGBH spokesperson Jeanne Hopkins told Current that the settlement involves a payment equal to the error rate of half a percent to one percent of the total value of the grants, which was $60 million.

Development

IPM offers to bridge PTV stations to spectrum auctions

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Independent Public Media has unveiled a new program to provide bridge funding to financially troubled pubTV stations. The loans will help them stay on the air through the FCC’s incentive spectrum auction, and require a payout from auction proceeds. IPM designed the loan program to assist noncommercial broadcasters until they can sell off some, but not all, of their spectrum bandwidth through the FCC auction, and assumed that stations will gain big payoffs by participating. Once auction proceeds begin rolling in to a borrower station, IPM will pay off expenses incurred by participating in the auction and then recoup the principal and interest on its loan. The remaining auction revenues would be evenly split between IPM and the station.

Development

Basic memberships: More trouble than they’re worth?

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Basic memberships offered during pledge drives and in direct-mail appeals are a time-tested enticement for converting pubcasting viewers and listeners into contributors, but station-based development staff are perplexed about how to set the rate for this donation level. Some pubcasters are weighing whether to stop offering basic memberships altogether. A survey conducted this fall by Plymouth, Mass.–based direct-marketing consultant DMW Direct found that most stations charge below $50 for a basic membership, and few have adjusted the rate within the last five years. The basic median rate among the 41 public TV and radio stations that participated in the survey is $40, but 16 stations reported to DMW that they charge less. These rates are far below average gift amounts for public stations.

Development

Seven rules for station execs to succeed in fundraising

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More than a decade ago, I was appearing on-air during a television pledge drive when a phone bank volunteer said a caller on his line insisted on talking to me. I picked up the phone with some trepidation and — sure enough — a WXXI member complained angrily about getting too much direct mail. He was especially upset because he had received a letter inviting him to join WXXI when he was already a member. I apologized and, to make up for his inconvenience, invited him to lunch and a tour of the station. He accepted, and took a bus to the station (he didn’t drive) to meet with me.

Development

Winning members at their doors

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One of the most promising new membership initiatives to come along for public television in years doesn’t involve phone banks, on-air pitches or premium packages. It’s door-to-door canvassing, the grass-rootsy technique for talking up causes and soliciting donations face-to-face.

Development

Sponsor churn, ebb in digital cut into NPR’s bottom line

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With one of its biggest corporate sponsors pulling back from a multiyear underwriting commitment, NPR has an uphill climb to rebuild its sponsorship revenues from 2011, when the network’s sales reps reeled in enough deals to set a new earnings record. High turnover — or “churn” — among its corporate clients, and the pullback of companies that spend the most money on advertising, cut into NPR’s bottom line in the fiscal year that just closed. After netting $2.4 million in profits in 2011, largely on robust sponsorship sales, the network aimed high for 2012. But sales fell far short of projections. For fiscal year 2012, which ended on Sept.