FCC Proposes to Allow On-Air Pubcaster Fundraising for Other Nonprofits

The proposal is “another step in the commission’s effort to review existing regulations and reduce unnecessary burdens,” the agency said Thursday. Currently, fundraising activities for third parties are prohibited “if fundraising activities conducted on-air would substantially alter or suspend regular programming,” the FCC said. The policy reflects concerns that such stations aim to meet their mission through NCE programming, “not through fundraising activities for other organizations,” the commission said. Changing the policy was suggested by the National Religious Broadcasters and became a recommendation in the commission’s report last year on the information needs of communities (http://xrl.us/bkq83f).

The proposal intends to give stations “more flexibility to raise money on-air for charities in their local communities and around the world,” said FCC Chairman Julius Genachowski. Allowing NCEs to partner with charities, religious organizations, schools and other non-profit organizations “to raise money for worthy causes will enable these stations to help meet the needs of their local communities,” he said. Fundraising also can help raise awareness about important local and international topics, he said.

The rulemaking proposes to replace the process of requesting a waiver to raise funds on-air for other organizations. The commission has granted waivers to NCEs that wanted to use broadcast time to support relief efforts for disasters like Hurricane Katrina and the Sept. 11 terrorist attacks, the commission said. It wants comment on whether there should be any limitations on NCE stations that may engage in third-party fundraising. The NRB notes that because NCE licensees rely on fundraising to support their own operations, “these stations will not want to broadcast excessive appeals for other nonprofit groups because they could negatively impact the licensees’ own self-interests by diverting public support away from the broadcaster,” the rulemaking said. How to define a nonprofit entity and whether a time limit should be placed on a fundraising effort also are considered in the rulemaking. The proposal questions whether the ban on such fundraising “remains necessary to preserve the noncommercial nature of NCE stations,” the commission said.

The FCC proposed that on-air time spent raising money should not exceed 1 percent, a suggestion made by the NRB (http://xrl.us/bm4idn). This annual limit averages to about 88 hours or four days of programming airtime, the commission said. It said this limit could help ensure “that unrelated nonprofit fundraising does not undermine the educational programming mission of these stations.” NRB said it’s pleased with the proposal. “It asks the right questions and addresses a crucial public interest opportunity,” said General Counsel Craig Parshall.

For compliance purposes, the rulemaking seeks comment on whether stations should submit annual reports to the FCC on the fundraising activities and the information that should be provided. That was expected (CD April 9 p5). For example, the reports could include the specific cause supported by the fundraiser, the duration, total funds raised and the type of fundraising activity, the rulemaking said. Comments are due 30 days after the notice is published in the Federal Register, replies 30 days later.