NCE Third-Party Fundraising Item Could Get Pushback From Some Public Broadcasters
A draft item set for April’s commissioners' meeting that would allow some public broadcasters to hold fundraisers for third-party nonprofits (see 1703300066) was enthusiastically supported by its original proponents, the National Religious Broadcasters. It likely won’t be welcomed by its longtime opponents in public media, according to FCC filings and interviews. “It would be a disservice to public broadcasters’ mission to become a fundraising outlet for others,” said Todd Gray of Gray Miller, who represents public broadcasters. The draft item is an outgrowth of an FCC policy that granted temporary waivers to public media stations to raise funds for disaster relief, NRB said. “We’ve seen how well these stations do in connecting those who want to give with charitable causes; we see a benefit in connecting them to everyday causes," said NRB Vice President-Government Relations Aaron Mercer.
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The draft item is based on an NPRM that was approved by the full commission in April 2012 under then-Chairman Julius Genachowski, which means current Commissioner Mignon Clyburn supported it. Clyburn’s stance on the draft item isn’t clear, said attorneys following the proceeding. Though Chairman Ajit Pai didn’t join the FCC until after the NPRM was voted, both he and Commissioner Mike O’Rielly are expected to support the item. Clyburn's office didn't comment.
The draft item would allow only stations that aren’t funded by CPB to fundraise for nonprofits on 1 percent of their annual programming, with mandatory disclosure of the entity being fundraised for at the beginning, end and once per hour of the programming, according to the draft item. Despite those limitations, the item is a “win all the way around,” said Mercer. Many of the limitations were suggested back in 2012, and are in line with what NRB was expecting based on the record, Mercer said. According to the draft item, one place NRB was stymied was on compensation from the third party benefiting from the fundraising. The item allows stations to be reimbursed by the third party for expenses, rejecting an NRB suggestion that stations be allowed to receive “additional consideration” in exchange for airing third-party fundraising programs. “Allowing NCE stations to receive additional consideration for third-party fundraising activities could create the perception that NCE stations are engaging in commercial activity,” the draft item said.
Public broadcasting stations are concerned about how the draft item will affect the third-party fundraising waiver process for CPB stations going forward, Gray said. The prospect that an NCE broadcaster could host a third party fundraiser could lead to pressure from charitable groups or donors on the station to devote programming time to such efforts, Gray said. Though the prohibition on CPB funded stations should protect against that pressure, the draft item could be read to imply that waivers for CPB stations will be easier to receive than previously, he said. “To the extent that any individual CPB-funded NCE [noncommercial educational] stations would like to avail themselves of the general rule authorizing third-party fundraising, the Commission will entertain requests for waiver of this exemption,” says the draft item. Public broadcasters would like to see language confirming that the waiver process for CPB-funded stations remains the same and is intended for extraordinary circumstances, Gray said. The public broadcasters haven’t decided if they will seek reconsideration if the draft is passed as is, he said.
NPR has been the most vocal opponent of the draft rule, and NPR and NRB are the only entities to file in docket 12-106 since 2013. NPR, PBS, America's Public Television Stations and CPB didn’t comment for this story. In previous filings, NPR and other opponents were concerned that allowing third-party fundraising would dilute the mission of NCE stations, becoming a foot in the door for more commercial activity, and confusing consumers. The rule would encourage ”the use of NCE broadcast stations as fundraising vehicles for independent third parties or other non-station interests rather than as sources of public interest programming,” said NPR in an ex parte filing in March.
“Even though the rule is for only one percent of airtime, what will prevent the FCC from allowing stations, especially those with an agenda that promotes one group of people while marginalizing another from granting more time through either waivers or future rulemaking?” emailed Michelle Brady, owner of low-power FM proponent REC Networks. Brady filed in opposition of the proposal in 2012. “It is not appropriate to use a finite resource provided free of charge by the government to raise funds for organizations that may be engaged in the marginalization of sectors of our population," she said now, "especially when there are other groups that have been shut out from having a voice on the air because of a lack of spectrum.”