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	<title>Comments on: Public Radio Fund Drives</title>
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	<description>A posting every day; an interesting idea every three months...</description>
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		<title>By: Allen</title>
		<link>http://blogs.law.harvard.edu/philg/2009/06/22/public-radio-fund-drives/comment-page-1/#comment-135655</link>
		<dc:creator>Allen</dc:creator>
		<pubDate>Wed, 02 Sep 2009 14:48:13 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.law.harvard.edu/philg/?p=1400#comment-135655</guid>
		<description>Update from yesterday&#039;s Boston Globe: 

http://www.boston.com/business/articles/2009/09/01/at_wgbh_the_picture_seems_a_bit_cloudy/

&quot;Just two years ago, WGBH celebrated the opening of an $85 million state-of-the-art headquarters that symbolized its self-described status as a “public media powerhouse.’’

Maybe they regret that 30&#039; x 45&#039; LCD screen now?</description>
		<content:encoded><![CDATA[<p>Update from yesterday&#8217;s Boston Globe: </p>
<p><a href="http://www.boston.com/business/articles/2009/09/01/at_wgbh_the_picture_seems_a_bit_cloudy/" rel="nofollow">http://www.boston.com/business/articles/2009/09/01/at_wgbh_the_picture_seems_a_bit_cloudy/</a></p>
<p>&#8220;Just two years ago, WGBH celebrated the opening of an $85 million state-of-the-art headquarters that symbolized its self-described status as a “public media powerhouse.’’</p>
<p>Maybe they regret that 30&#8242; x 45&#8242; LCD screen now?</p>
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		<title>By: David Molnar</title>
		<link>http://blogs.law.harvard.edu/philg/2009/06/22/public-radio-fund-drives/comment-page-1/#comment-129134</link>
		<dc:creator>David Molnar</dc:creator>
		<pubDate>Sat, 27 Jun 2009 07:11:17 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.law.harvard.edu/philg/?p=1400#comment-129134</guid>
		<description>One issue that may contribute to fundraising, even when it has low return on investment: 501c3 organizations need to demonstrate a certain amount of public support to keep their tax status. The IRS ideally wants to see 33 1/3% of the operating budget come from public contributions (minus any benefits received by donors as a result of their contributions, as discussed in previous comments about benefit from having name mentioned). If an organization fails to meet the 33 1/3% threshold, then it ends up with some questions to answer for the IRS. There is an alternate &quot;facts and circumstances test&quot; that can save an organization&#039;s tax status if less than 33 1/3% but at least 10% of its budget comes from members of the public. 

Here&#039;s some pages that discuss these issues:
http://www.sharinglaw.net/npo/PublicSupportTest.htm
http://www.onestopbizhelp.com/nonprofit/status.htm
http://www.irs.gov/publications/p557/ch03.html#d0e4630

Failure to meet either the 33 1/3 % or the 10% + &quot;facts and circumstances&quot; means that your organization becomes a &quot;private foundation&quot; in the eyes of the IRS. Private foundations have a number of rules and restrictions not applicable to 501c3 public charities, so unless an organization is specifically envisioned as a private foundation, it will do pretty much anything it can to avoid falling into this category. 

I am not a lawyer, and I haven&#039;t reviewed the 990 form. Still, it wouldn&#039;t surprise me if one of the motivations for these pledge drives is to survive an IRS review of the nonprofit status...the way the law is set up leads to some odd incentives for organizations that force them to do public fundraising even if their &quot;business&quot; model would not otherwise require it. I know about this because I am part of the Noisebridge hacker space in San Francisco -- we decided to seek 501c3 public charity status and this is one of the things we&#039;re working with now.</description>
		<content:encoded><![CDATA[<p>One issue that may contribute to fundraising, even when it has low return on investment: 501c3 organizations need to demonstrate a certain amount of public support to keep their tax status. The IRS ideally wants to see 33 1/3% of the operating budget come from public contributions (minus any benefits received by donors as a result of their contributions, as discussed in previous comments about benefit from having name mentioned). If an organization fails to meet the 33 1/3% threshold, then it ends up with some questions to answer for the IRS. There is an alternate &#8220;facts and circumstances test&#8221; that can save an organization&#8217;s tax status if less than 33 1/3% but at least 10% of its budget comes from members of the public. </p>
<p>Here&#8217;s some pages that discuss these issues:<br />
<a href="http://www.sharinglaw.net/npo/PublicSupportTest.htm" rel="nofollow">http://www.sharinglaw.net/npo/PublicSupportTest.htm</a><br />
<a href="http://www.onestopbizhelp.com/nonprofit/status.htm" rel="nofollow">http://www.onestopbizhelp.com/nonprofit/status.htm</a><br />
<a href="http://www.irs.gov/publications/p557/ch03.html#d0e4630" rel="nofollow">http://www.irs.gov/publications/p557/ch03.html#d0e4630</a></p>
<p>Failure to meet either the 33 1/3 % or the 10% + &#8220;facts and circumstances&#8221; means that your organization becomes a &#8220;private foundation&#8221; in the eyes of the IRS. Private foundations have a number of rules and restrictions not applicable to 501c3 public charities, so unless an organization is specifically envisioned as a private foundation, it will do pretty much anything it can to avoid falling into this category. </p>
<p>I am not a lawyer, and I haven&#8217;t reviewed the 990 form. Still, it wouldn&#8217;t surprise me if one of the motivations for these pledge drives is to survive an IRS review of the nonprofit status&#8230;the way the law is set up leads to some odd incentives for organizations that force them to do public fundraising even if their &#8220;business&#8221; model would not otherwise require it. I know about this because I am part of the Noisebridge hacker space in San Francisco &#8212; we decided to seek 501c3 public charity status and this is one of the things we&#8217;re working with now.</p>
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		<title>By: Ted Marcus</title>
		<link>http://blogs.law.harvard.edu/philg/2009/06/22/public-radio-fund-drives/comment-page-1/#comment-128914</link>
		<dc:creator>Ted Marcus</dc:creator>
		<pubDate>Fri, 26 Jun 2009 03:10:20 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.law.harvard.edu/philg/?p=1400#comment-128914</guid>
		<description>Although I&#039;ve been a long-time supporter of two public radio stations in Los Angeles, I&#039;m beginning to wonder about the continued viability of public radio. We have one classical radio station here, KUSC. I have never thought much of their programming, but they were the only game in town when I didn&#039;t have my iPod with me. 

When I got a new car six months ago, it came with XM radio and a three-month trial subscription. I found the two XM classical channels greatly preferable to KUSC (along with a &quot;show tune&quot; channel that doesn&#039;t exist on the air), so of course I bought a subscription. A few months later, I got myself a Sanyo R227 Internet radio. So even when my computer isn&#039;t on I can listen to the CBC channels (thank you Canadian taxpayers, eh?), San Francisco&#039;s (commercial) KDFC, and best of all, Switzerland&#039;s national treasure called Swiss Classic (thank you Swiss taxpayers). And there are several hundred other classical channels that I haven&#039;t bothered with. So who needs KUSC?  

The two stations I support (KPCC and KCRW) carry unique news and &quot;independent.&quot; I think I&#039;ll continue to support them because they provide a valuable service and are the first place I turn for breaking news. But with XM in the car and Internet radio at home, there&#039;s much less time (and need) for them.</description>
		<content:encoded><![CDATA[<p>Although I&#8217;ve been a long-time supporter of two public radio stations in Los Angeles, I&#8217;m beginning to wonder about the continued viability of public radio. We have one classical radio station here, KUSC. I have never thought much of their programming, but they were the only game in town when I didn&#8217;t have my iPod with me. </p>
<p>When I got a new car six months ago, it came with XM radio and a three-month trial subscription. I found the two XM classical channels greatly preferable to KUSC (along with a &#8220;show tune&#8221; channel that doesn&#8217;t exist on the air), so of course I bought a subscription. A few months later, I got myself a Sanyo R227 Internet radio. So even when my computer isn&#8217;t on I can listen to the CBC channels (thank you Canadian taxpayers, eh?), San Francisco&#8217;s (commercial) KDFC, and best of all, Switzerland&#8217;s national treasure called Swiss Classic (thank you Swiss taxpayers). And there are several hundred other classical channels that I haven&#8217;t bothered with. So who needs KUSC?  </p>
<p>The two stations I support (KPCC and KCRW) carry unique news and &#8220;independent.&#8221; I think I&#8217;ll continue to support them because they provide a valuable service and are the first place I turn for breaking news. But with XM in the car and Internet radio at home, there&#8217;s much less time (and need) for them.</p>
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		<title>By: anilo</title>
		<link>http://blogs.law.harvard.edu/philg/2009/06/22/public-radio-fund-drives/comment-page-1/#comment-128866</link>
		<dc:creator>anilo</dc:creator>
		<pubDate>Thu, 25 Jun 2009 18:54:30 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.law.harvard.edu/philg/?p=1400#comment-128866</guid>
		<description>I couldn&#039;t agree more. I always listen to NPR on my 30 minute commute, but switch to other stations for the couple days with fund raising. I can&#039;t stand hearing the same speech on what a difference $20 will make for them.</description>
		<content:encoded><![CDATA[<p>I couldn&#8217;t agree more. I always listen to NPR on my 30 minute commute, but switch to other stations for the couple days with fund raising. I can&#8217;t stand hearing the same speech on what a difference $20 will make for them.</p>
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		<title>By: njkayaker</title>
		<link>http://blogs.law.harvard.edu/philg/2009/06/22/public-radio-fund-drives/comment-page-1/#comment-128849</link>
		<dc:creator>njkayaker</dc:creator>
		<pubDate>Thu, 25 Jun 2009 16:56:35 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.law.harvard.edu/philg/?p=1400#comment-128849</guid>
		<description>Aren&#039;t public radio stations required to provide some level of funding through membership contributions to get additional federal support? Getting membership money establishes that there are people who are interested in what the station provides.</description>
		<content:encoded><![CDATA[<p>Aren&#8217;t public radio stations required to provide some level of funding through membership contributions to get additional federal support? Getting membership money establishes that there are people who are interested in what the station provides.</p>
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		<title>By: Anon100</title>
		<link>http://blogs.law.harvard.edu/philg/2009/06/22/public-radio-fund-drives/comment-page-1/#comment-128823</link>
		<dc:creator>Anon100</dc:creator>
		<pubDate>Thu, 25 Jun 2009 11:32:49 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.law.harvard.edu/philg/?p=1400#comment-128823</guid>
		<description>I would suppose that if/when various people donate to the station, that:

- Is useful information when lobbying for money from the government (&#039;look, X people donated to us in the last 5 years, a significant number of voters must care about us.&#039;)

- Encourages everyone who listens to think that public broadcasting is at risk of not having enough money, so the listeners will tend to support funding for public broadcasting if the issue ever comes up (which it does, at least indirectly, every time a candidate runs who is associated with giving more or less money to a million little different possibly optional government activities.)</description>
		<content:encoded><![CDATA[<p>I would suppose that if/when various people donate to the station, that:</p>
<p>- Is useful information when lobbying for money from the government (&#8217;look, X people donated to us in the last 5 years, a significant number of voters must care about us.&#8217;)</p>
<p>- Encourages everyone who listens to think that public broadcasting is at risk of not having enough money, so the listeners will tend to support funding for public broadcasting if the issue ever comes up (which it does, at least indirectly, every time a candidate runs who is associated with giving more or less money to a million little different possibly optional government activities.)</p>
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		<title>By: Andrew</title>
		<link>http://blogs.law.harvard.edu/philg/2009/06/22/public-radio-fund-drives/comment-page-1/#comment-128712</link>
		<dc:creator>Andrew</dc:creator>
		<pubDate>Wed, 24 Jun 2009 14:49:36 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.law.harvard.edu/philg/?p=1400#comment-128712</guid>
		<description>@Paul P: you were just on the wrong end of an accounting rule.

Having your personal name mentioned is of no value to you, but having your business name mentioned might have been.  501(c)(3)s are required to subtract any &quot;value received&quot; in exchange for your donation from the deduction value.  This includes gifts for personal use (mugs, tote bags, etc) too, but in your case your pledge probably looked like a corporate donation ($1000 is much higher than most personal pledges), so it got lumped into wrong category.

Less forgivable (to me) is that a single donation to a station gets you on so many freakin fundraising mailing lists.  And donating to a college station often gets you added to the college&#039;s general donor list.  I&#039;m looking at you, WZBC.  :)</description>
		<content:encoded><![CDATA[<p>@Paul P: you were just on the wrong end of an accounting rule.</p>
<p>Having your personal name mentioned is of no value to you, but having your business name mentioned might have been.  501(c)(3)s are required to subtract any &#8220;value received&#8221; in exchange for your donation from the deduction value.  This includes gifts for personal use (mugs, tote bags, etc) too, but in your case your pledge probably looked like a corporate donation ($1000 is much higher than most personal pledges), so it got lumped into wrong category.</p>
<p>Less forgivable (to me) is that a single donation to a station gets you on so many freakin fundraising mailing lists.  And donating to a college station often gets you added to the college&#8217;s general donor list.  I&#8217;m looking at you, WZBC.  <img src='http://blogs.law.harvard.edu/philg/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> </p>
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		<title>By: Paul P.</title>
		<link>http://blogs.law.harvard.edu/philg/2009/06/22/public-radio-fund-drives/comment-page-1/#comment-128652</link>
		<dc:creator>Paul P.</dc:creator>
		<pubDate>Wed, 24 Jun 2009 03:19:42 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.law.harvard.edu/philg/?p=1400#comment-128652</guid>
		<description>My personal horror story: I donated $1,000 to Folk Alley WKSU. I got back a &quot;tax deduction&quot; for (approx) $700. I was really upset, called the station, their logic was that I-personally got &quot;$300 worth of benefit&quot; from having my name broadcast as a supporter (&quot;once every 4 hours, for a full day!&quot;). Furthermore, the Kent State &quot;School of Accounting&quot; had deemed this &quot;fair/reasonable&quot;.  I was furious. Was told the &quot;CFO&quot; was out of town tor 2 weeks, would get back to me.

More time/argument, finally got my receipt for $1,000. Never listened to the station again.</description>
		<content:encoded><![CDATA[<p>My personal horror story: I donated $1,000 to Folk Alley WKSU. I got back a &#8220;tax deduction&#8221; for (approx) $700. I was really upset, called the station, their logic was that I-personally got &#8220;$300 worth of benefit&#8221; from having my name broadcast as a supporter (&#8221;once every 4 hours, for a full day!&#8221;). Furthermore, the Kent State &#8220;School of Accounting&#8221; had deemed this &#8220;fair/reasonable&#8221;.  I was furious. Was told the &#8220;CFO&#8221; was out of town tor 2 weeks, would get back to me.</p>
<p>More time/argument, finally got my receipt for $1,000. Never listened to the station again.</p>
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		<title>By: Chris</title>
		<link>http://blogs.law.harvard.edu/philg/2009/06/22/public-radio-fund-drives/comment-page-1/#comment-128641</link>
		<dc:creator>Chris</dc:creator>
		<pubDate>Wed, 24 Jun 2009 01:30:22 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.law.harvard.edu/philg/?p=1400#comment-128641</guid>
		<description>I felt guilty so I dropped my local station $20.  That just whet the appetite of &quot;the beggars.&quot;

Now I&#039;m getting mailings and calls asking for more.  Good grief.  I only listen to them on my commute (which is at the most 15 minutes).  So I thought $20 was plenty.

The sent me membership cards (3) and a letter.  The membership card entitles me to discounts at very cliched NPR listener stores.  Places I would never go in other words.  

At work and home I listen to Pandora.com.  I create a station and can listen free all day.</description>
		<content:encoded><![CDATA[<p>I felt guilty so I dropped my local station $20.  That just whet the appetite of &#8220;the beggars.&#8221;</p>
<p>Now I&#8217;m getting mailings and calls asking for more.  Good grief.  I only listen to them on my commute (which is at the most 15 minutes).  So I thought $20 was plenty.</p>
<p>The sent me membership cards (3) and a letter.  The membership card entitles me to discounts at very cliched NPR listener stores.  Places I would never go in other words.  </p>
<p>At work and home I listen to&nbsp;<a href="http://Pandora.com" title="http://Pandora. " target="_blank">Pandora.com</a>.  I create a station and can listen free all day.</p>
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		<title>By: Bill</title>
		<link>http://blogs.law.harvard.edu/philg/2009/06/22/public-radio-fund-drives/comment-page-1/#comment-128623</link>
		<dc:creator>Bill</dc:creator>
		<pubDate>Tue, 23 Jun 2009 22:05:59 +0000</pubDate>
		<guid isPermaLink="false">http://blogs.law.harvard.edu/philg/?p=1400#comment-128623</guid>
		<description>Phil: Sorry, but the story about the teachers sitting around was featured on This American Life.  (http://www.thisamericanlife.org/Radio_Episode.aspx?episode=350)

Does anyone know if NPR stations are _required_ to do listener fundraising by NPR itself?</description>
		<content:encoded><![CDATA[<p>Phil: Sorry, but the story about the teachers sitting around was featured on This American Life.  (<a href="http://www.thisamericanlife.org/Radio_Episode.aspx?episode=350" rel="nofollow">http://www.thisamericanlife.org/Radio_Episode.aspx?episode=350</a>)</p>
<p>Does anyone know if NPR stations are _required_ to do listener fundraising by NPR itself?</p>
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