REPORT TO KPFT LOCAL STATION BOARD/ May 25, 2005
BY DUANE BRADLEY-GM

 

KPFT is ending the eighth month of fiscal FY2005 in increasingly good shape. Total revenue as of April 30 is over $751K; over 56% of our FY05 budget of $1.3 million and $34K behind budget projections. That includes $645K in listener support, $20K in major gift donations, over $10K in corporate matching money and $50K in grant income. Membership hovers in the 9,200 range.

Revenue for the month of May thru yesterday shows listener support up at $725K not including the grant money, and total revenue is about $843K. That represents 63% of the FY05 total budget after nearly 66% of the fiscal year.

The May fund drive, scheduled to run from May 11 thru 27, with a goal of $300K, has done very well thus far. We are happy to report that, due in no small part to the “Buy Back” campaign bringing in over $16K and counting, we will successfully end the drive a full day early. This is a huge psychological boost to the entire staff and serves, we feel, as an endorsement of recent program changes as well as a reversal of the trend of the past two drives this fiscal year. Current results for the drive show $284K from over 2400 pledges and over 800 new members.

KPFT staff changes continue to evolve. Robin Lewis has taken on the Membership Coordinator role on an interim basis. The formal job posting will go out by the end of this month. Valarie Torres has joined the News Department as an interim Assistant Director. That position will be posted following the search for a permanent Program Director. Ernesto Aquilar continues to do a great job in the interim PD role and we look forward to working with the LSB on the PD search process beginning next month.

The first meeting of the KPFT Program Council was held last weekend. It was convened by Ernesto and 10 of the 12 members were present. Members were given a brief orientation and discussed several matters, including training and a preliminary discussion of the PSA policy. Election of a chair and secretary, setting of a regular meeting schedule and fuller discussion of the station PSA policy were planned for the next meeting, scheduled for June 4.

I am attaching an opinion from John Crigler of Garvey, Schubert and Barer, our FCC legal counsel, in regard to recent discussions about KPFT and PSA policy. I believe this issue is a perfect area for the Program Council to address as it moves forward.

Crigler stated:
Stations are given a great deal of discretion over what organizations to take PSAs from.
If the sponsoring organization provides any consideration (including the produced version of the PSA itself) in exchange for airing a spot, the sponsoring organization must be identified. To avoid any conflict with the FCC's underwriting rules, noncommercial stations usually accept paid PSAs only from non-profit entitiies.
The FCC's underwriting rules prohibit the receipt of consideration in exchange for the promotion of for-profit entitiies or events that benefit such entities. By implication, stations may accept paid PSAs from non-profits. The underwriting rules do not define "non-profit" organizations, however.
One option is to limit the definition to non-profit organizations  granted an exemption from federal income tax under 501(c)(3) of the tax code. While there's nothing wrong with that position, it's probably more restrictive than necessary.  I believe the FCC would permit any organization that qualifies as a non-profit organization under state law to be treated as a non-profit. To qualify as a non-profit corporation or association usually requires the filing of articles of incorporation or association with the state and the payment of a small registration and annual franchise fees. 
I think it makes sense to require that groups claiming to be non-profits provide some proof of their status. Otherwise, the station won't know whether it's promoting a bona fide non-profit event, or something that will merely benefit a group of individuals with no defined charitable or educational purpose.
John

 The city of Houston occupancy inspection certification process will kick into full gear following the fund drive. Major structural work will be done in June; minor electrical and plumbing work should conclude early in June. We expect to finish work before July.

Our HCAD protest hearing was decided against KPFT. Our option to pursue an appeal in district court will be organized with pro-bono legal aid from Mike Martin.

KPFT's license renewal process continues and we are submitting an HD grant application to the CPB for digital conversion funds.

The FY06 budget process has begun and we met with the LSB Finance Committee this week to begin collaborative discussions. A preliminary budget will be discussed at the upcoming Administrative Council meeting preceding the PNB meeting in Berkeley on June 17-19.