Funding
According to the 2005 financial statement, NPR makes just over half of its money from the fees and dues it charges member stations to receive programming. Public funding accounts for 16% of the average member station's revenue, with 10% of this coming in the form of grants from the Corporation for Public Broadcasting, a federally funded organization.[14][15][16] Some more of that money originates from local and state governments and government-funded universities subsidizing member stations' fees and dues to NPR.[17] Member stations that serve rural and "minority" communities receive significantly more funding from the CPB; in some cases up to 70%.[14] About 2% of NPR's non-membership created funding comes from bidding on government grants and programs, chiefly the Corporation for Public Broadcasting; the remainder comes from member station dues, foundation grants, and corporate underwriting. Typically, NPR member stations raise funds through on-air pledge drives, corporate underwriting, and grants from state governments, universities, and the CPB itself.
Over the years, the portion of the total NPR budget that comes from government funding has decreased. During the 1970s and early 1980s, the majority of NPR funding came from the federal government. Steps were taken during the 1980s to completely wean NPR from government support, but the 1983 funding crisis forced the network to make immediate changes. More money to fund the NPR network was raised from listeners, charitable foundations and corporations, and less from the federal government.
[edit]
Underwriting spots vs. commercials
In contrast with commercial radio, NPR does not carry traditional commercials, but has advertising in the form of brief statements from major donors, such as Allstate, Merck, and Archer Daniels Midland. These statements are called "underwriting spots", not commercials, and, unlike commercials, are governed by FCC restrictions; they cannot advocate a product or contain any "call to action". In 2005, corporate sponsorship made up 23% of the NPR budget.[18] NPR is not as dependent on revenue from underwriting spots as commercial stations are on revenue from advertising.[citation needed]
[edit]
Joan Kroc Grant
On November 6, 2003, NPR was given over US$225 million from the estate of the late Joan B. Kroc, the widow of Ray Kroc, founder of McDonald's Corporation. This was a record—the largest monetary gift ever to a cultural institution.[19][20] For context, the 2003 annual budget of NPR was US$101 million. In 2004 that number increased by over 50% to US$153 million due to the Kroc gift. US$34 million of the money was deposited in its endowment.[21] The endowment fund before the gift totaled $35 million.[19] NPR will use the interest from the bequest to expand its news staff and reduce some member stations' fees.[citation needed] The 2005 budget was about US$120 million.
[edit]
George Soros grant
In October 2010, NPR accepted a $1.8 million grant from George Soros, given through his Open Society Foundation. The grant is meant to begin a project called Impact of Government that is intended to add at least 100 journalists at NPR member radio stations in all 50 states over the next three years[22]