Who Funds NPR?
NPR’s funding is primarily from the Corporation for Public Broadcasting (CPB) and member station dues. It also receives grants from federal, state and local governments.
NPR is widely viewed as a publicly funded organization, but most of its revenue comes from private donations. That is because of the way CPB and public radio stations are structured.
Corporation for Public Broadcasting (CPB)
The Corporation for Public Broadcasting (CPB) is the steward of federal funding for local public television and radio stations. It awards grants to a variety of producers and organizations to create programs that air on public media stations across the country.
The Board of Directors governs CPB and sets programming priorities for the organization. Each member of the board is appointed by the President and serves six-year terms. No more than five of the members can be from any single political party.
Ninety-five percent of the appropriation for CPB goes to support local public television and radio stations, community services and content development. Less than five percent is allocated for administrative costs, a rate far below that of other nonprofits.
In many rural communities, public radio and television stations are the only sources of local news, educational resources, lifesaving emergency alerts, and digital access. Without CPB funding, these stations would be forced to cut programs or shut down entirely.
This is a real threat to our democracy and the very fabric of our society. The CPB is currently asking Congress to maintain robust funding for local public media. It is important that you call your members of Congress and ask them to stand up for this critical resource.
Aside from a small amount of government money, most of the revenue for public radio and television comes from listener donations, corporate sponsorships of programing, and individual contributions. These funds help to fund vital telecommunications technology and emergency signaling services that assist first responders and are essential to protecting our country from emergencies.
The Corporation for Public Broadcasting was founded in 1967, under President Lyndon B. Johnson, to support public broadcasting. It is comprised of 171 noncommercial licensees and operates 347 public media stations nationwide.
By law, 95% of the appropriation for CPB goes directly to local public radio and television stations. This funding supports public radio and television stations in their mission to serve all citizens with quality noncommercial programming.
Almost all of this funding comes from the federal government. The remaining amount is from sources including private foundations, individual contributions and station memberships.
Member Station Dues
NPR is a public radio network, and most of its funding comes from member station fees and corporate underwriting. But it also receives grants from the Corporation for Public Broadcasting (CPB) that are distributed directly to NPR member stations.
NPR’s first broadcast was on April 20, 1971, and today the NPR network has nearly 1,000 member stations spread across the country. Its members produce and transmit a variety of programming, from NPR-produced programs like All Things Considered, Wait, Wait… Don’t Tell Me! and Morning Edition to shows developed by other producers or created entirely by their own local staff.
In 1983, NPR was restructured by the Corporation for Public Broadcasting, which imposed stricter financial controls on the organization and put it under CPB loans to help keep it running. The restructuring brought about many changes, including the direct allocation of CPB grant money to NPR member stations.
The restructured system of grantmaking was critical to NPR’s survival. But even so, NPR faces pressure from conservatives to cut federal subsidies and defund the organization.
One of the most controversial aspects of NPR’s funding is how it funds its membership stations. NPR has a large number of member stations, and each is an independently-owned, locally-operated broadcasting company.
Those stations determine their own format and schedules, based on the interests of their listeners. They choose whether to focus on news, music or both.
That’s why NPR has a policy of indexing program fees to the proportion of revenue that stations spend on NPR programming. That allows stations to budget their programming costs more carefully, and gives listeners a better idea of what they’re paying for when they choose to listen.
However, this has a downside: It makes it harder for smaller stations to get their local content onto the air. That’s why NPR recently proposed a new fee model.
NPR’s new model will shift some of the station fees it charges to a model that’s based on the amount that individual stations donate to NPR and other nonprofit organizations. The new model is a step toward a more forward-looking fee structure, Mayor said.
Endowment
Endowments are a way for donors to make a larger gift than they might otherwise, and to leave behind their legacy with a charitable organization. They are also a way for a charity to receive money on a regular basis, so they are able to grow and support their work in perpetuity.
Donors may donate cash, real estate, stocks and mutual funds. These assets are then invested to earn interest and dividends that the nonprofit can spend. This means that the organization does not have to rely on incoming donations for funding, which can be risky in a downturn.
Many charities with endowments also develop investment strategies that are steered by an investment committee. These strategies are designed to maximize the impact of the endowment and create sustainable growth over time.
These organizations often have a specific investment and spending policy that guides how the endowment is invested, when and how much it can be withdrawn, and what it can be spent on. These policies specify things like a target rate of return and whether or not to invest the endowment in investments that advance the mission of the organization.
This is a great option for donors who are looking for a tax-advantaged way to donate. They can avoid paying capital gains taxes on their donation, and they can get a tax deduction for the value of their gifts.
Non-profits should be careful about the type of endowment they choose. The endowment should be a pure endowment, meaning it has been created by an individual or group of individuals with explicit instructions, or other language indicating the donor’s intent, that the value of their gift be invested and held in perpetuity.
Another option is an unrestricted endowment, where the organization managing the fund can decide what it wants to do with the principal amount as well as any returns that come from the investments. This can be a good way to save for future needs or take advantage of unforeseen opportunities that arise.
In addition to a solid investment strategy, it is important for a non-profit to have a strong board of directors with experience in investment management and a strong ability to monitor the endowment’s investment portfolio. Without these elements, the non-profit will not be able to keep the endowment growing, which is essential for ensuring its long-term sustainability.
Other Income
Aside from charitable donations and member station dues, NPR gets a lot of its funding from other sources. These include the Corporation for Public Broadcasting (CPB), the state of New York and local governments, as well as royalties and licensing fees.
Some of the other revenue sources that npr receives include: major gifts, endowment investment income, special projects and other non-traditional fundraising efforts. These sources help to fund our mission of engaging listeners and providing them with quality journalism in an increasingly diverse, global community.
The best part of all of these other sources of funding is that it doesn’t impact our budget in any significant way, which means that we can continue to provide the award-winning programming that you love! In fact, we’ve seen our budget go up by about 50% thanks to the Kroc Foundation, so you can be confident that your generous donation is going to a good cause.
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