What is underwriting?

What is the Purpose of Underwriting?
Underwriting is assistance in the form of money, goods, or services provided by businesses and not for profit organizations in support of general or specific KPIH 98.9FM's programming.  Underwriting provides operating funds for KPIH98.9FM Radios, future growth, and programming to strengthen KPIH 98.9FM's image within the community.  Underwriting also provides opportunities for participating businesses to showcase their support for our programming.

How can Underwriting Benefit You?
While underwriting is not commercial advertising, it can provide your business with some of the same benefits plus some that commercial advertising can't offer.  Research indicates that Catholic Radio is not only a powerful evangelization tool but an excellent public relations tool, as well.  Listeners have a positive image of businesses that support Catholic Radio and report their purchasing decisions are influenced by such underwriting support.

Rim Catholic Evangelization, known as KPIH 98.9FM is a 501(c)(3) corporation.  All contributions may be tax deductible, so consult your tax preparer. 

The F.C.C. authorizes non-commercial stations to acknowledge gifts or grants from businesses or organizations that underwrite specific programs or portions of programming.  Recognition of those gifts on the air is referred to as an underwriting message.  Underwriting is a cost-effective investment in public relations, image promotion, and recognition.  

Underwriting Guidelines

Non-commercial Educational (NCE) radio and TV stations are forbidden by the FCC from airing commercial "spot announcements," paid programming from businesses/individuals, or raising money for any purpose except the station's own expenses. Educational radio/TV stations are permitted to:

• Air "enhanced underwriting announcements" acknowledging financial support from businesses and "for-profit" organizations.
• Accept financial underwriting for air programming provided by non-profit organizations such as churches, ministries, and civic clubs and associations.  These programs must be aired "in the public interest" and not "because of financial considerations."
• Solicit donations from individuals and families.  These are tax deductible and receipts must be mailed to all donors.

Underwriting from businesses and other "for profit" organizations 
Donations may be acknowledged by a graphic banner on the KPIH website or brief announcement, generally 30 seconds or less on the air.

Permitted:

• Name of donor
• Slogan or logo identifying the donor (audio or visual)
• Brand name may be included
• Address, telephone number, and website
• A value-neutral description of products, goods, and services

• Prohibited:

• Price information
• Comparative or qualitative statements
• "Calls to action" or statements encouraging listeners to contact or patronize the donor
• Repetitive statements (giving name/address several times in one announcement).

• 
  Underwriting from churches, ministries, and other non- profit organizations 
  Stations may air programs and announcements from bona fide non-profit entities if the material aired is deemed as advancing the public interest, rather than in return for consideration.
  
  Permitted: - Everything a for-profit entity is allowed plus:

• "Calls to action"
• Price information ("suggested donation")
• Printed materials and audio/video tapes may be offered and brief requests for donations
• Comparative or qualitative statements

• 
  Prohibited:

• Announcements totaling more than three minutes out of a thirty-minute program encouraging the listener/viewer to "send a donation"
• An NCE is forbidden to "interrupt regular programming" to raise money for any purpose except its own operating expenses.  Specifically, money can NOT be raised to help victims of disasters or groups like the Red Cross or Salvation Army, unless done as occasional brief Public Service Announcements.