Prometheus Background

Fundraising

Now that you have your license and construction permit, you are going to need to raise a bit of money to get your station rolling and to keep on the air. Prometheus' Marissa Johnson has some ideas for you.

Contents

[General Rules for Fundraising]
[Grants]
[On Air Fundraising]
[Events]
[Mailings]
[Sustaining Memberships]
[Underwriting]
[Trades and Services]
[Stuff with the Station's Name on it]
[Doorhangers]
[Other Resources]
[Conclusion]

Some general rules:

1)Set fiscal goals before the year starts
2) Appreciate the dedicated (volunteers/members/ donors)
3) Keep a detailed record all donations and the money used to solicit those donations so as to be able to accurately evaluate what works for your station and what doesn't, not to mention all the trouble you could get yourself into
4) Make fundraising a group effort whenever possible
5) Think of fundraising and publicity as birds of a feather
6) Be creative
7)Have a good database

1. Grants

We get asked about how to apply for grants all the time, so we'll start with this section first. However, grants are hard to get and to do them right is a lot of work (think term paper). We caution stations about depending on grants or thinking that grants are the answer to financial needs. That stated, there are grants to be had. Applying to Foundations for grants is best for capital projects such as setting up a station, purchasing equipment and specific projects (such as production of a series of youth programs about XYZ). Grants should not be depended on for annual operating expenses as they are hard to predict and are harder to obtain for such. On average Foundations reward grants to about 5-10% of those who apply, and in many cases less. Foundations that make grants nationally are especially competitive and often have very rigid guidelines.

Foundations are usually very specific about who they'll give money to and what that money can be used for. Be sure to meet all the requirements before preparing a proposal. If you aren't sure if your project fits into their guidelines call them and ask. If a foundation hasn't funded radio before they may have already decided against it, even if that isn't explicit in their guidelines. Call or write beforehand to check things out. In fact, the first step in grant writing is a one page letter of intent that you send to the foundation explaining your project and what you'd like from them for it. If, at the time of writing your letter of intent you know their guidelines and feel that your station fits into them- point that out as well. Don't forget to thank them for their consideration and for their reply. In most cases you will need to have non-profit status to receive grant money, if your station does not have 501-(c)(3) status you'll need to get a group that does (who will act as your fiscal sponsor) to accept the money for you. Prometheus has written a handout about non-profit status and fiscal sponsors that explains this in more detail.

For LPFMs the best bet may be applying for grants at a local level. With that in mind I have come up with a short list of considerations for LPFM groups that want to look into applying for grants.

• Find out who gives money to nearby non-commercial radio stations and contact them.
  

• Often, major corporations with a branch near your station have national foundations that give money only in the communities in which that company operates (ex: Union Pacific).

• Talk to community leaders and ask for their help. What grants do they know of? Who do they suggest you talk to? Be sure to explain the station, it's goals and the variety of people involved.

• Clear, concise and correct grant proposals are important. Have a 2nd and 3rd person review the grants. Demonstrate a need and explain the community your station will be serving.

• Don't be afraid to boast a little about your accomplishments and don't be afraid to be a little poetic. Give the reader the opportunity to fall in love with your project.

• Don't claim to be able to do anything that you don't think you can do. Funders understand that sometimes things don't go exactly as planned but they have an eye for unrealistic plans.

• Special programming can sometimes qualify for grants when general operating costs of a station do not. If your group develops programming about health, by youth, for the handicapped, by elderly or another specific target area there may be funds available to fund that specific project.

Two funding opportunities that are made just for radio stations that shouldn't be overlooked are the Corporation for Public Broadcasting (CPB) and NTIA (Dept. of Commerce). CPB tends to fund a lot of big projects but they do not exclude LPFM. NTIA has a program that funds up to half of the capital costs of transmitters, studios and the like. They expect you to get high quality stuff but hey, its not like you don't want it. It is a matching grant where you'll be expected to raise a sizable chunk of cash before you get any from them. Neither CPB nor NTIA will accept applications until your construction permit has been issued and both will have plenty of hoops for you to jump through. The NTIA grant may be a good idea for future upgrades of equipment rather than start up costs.

Though there are lots of sites online that offer assistance with finding and writing grants many of them really want to sell you a book or their services. The Foundation Center's website: http://fdncenter.org/ is a good place to start if you are going to look up grants online but most libraries should have books on grant writing as well.

[General Rules for Fundraising] [Grants] [On Air Fundraising] [Events] [Mailings]
[Sustaining Memberships] [Underwriting][Trades and Services]
[Stuff with the Station's Name on it] [Doorhangers][Other Resources] [Conclusion] [Back to top]

2. On Air Fundraising

Many larger non-commercial community stations depend on quarterly on-air fundraising drives for the majority of their annual operating expenses. However, those stations started new just like you and it took years for them to build up to the operating budgets that they have today. Though on air fundraising might not initially have a lot of return remember that appealing to your listeners lets them know that they share in the station. That you need them. Thank your listeners of listening and explain how and why you got started. Encourage people to volunteer whether they can donate money or not.

Some ways to
go about on-air fundraising

• Create recorded announcements that are short and fun.
  
  Include information about where to send donations (and or where to call) at least twice. Explain why you need the money and what it will be used for. Thank them for listening. These could be aired periodically daily, especially if you don't have on air fundraising drives that begin and end on certain dates.

• Have DJ's solicit donations and appeal for volunteers.
  
  Probably more convincing than a recorded commercial type. Prepare different pitches to serve as guidelines for DJ's and to get them thinking about the importance. Encourage DJ's to be creative. (Ex: $5 a song mail in dedications to be heard during that same show the next week)

• Plan a weeklong fundraising drive with a set goal.
  
  Tell your listeners in the weeks prior. Bring in guests/celebrities for that week. Get them on air and take questions on air. Continually update your audience with how close you are to the goal. Announce pledges, regardless of size, on air. Thank the donors. Continually give people a number to call and/or an address to mail donations to. Break down the numbers: a pledge of $120 is just $10 a month. Though you will accept pledges of any size, encourage larger ones as the expense of communicating will add up. Also, many stations report receiving only 50-70% of the pledges they record.

• Obtain donations from local businesses so as to offer a $10 gift certificate for every $50 donation or a free game of pool for every $15 donation.

Also see sustaining memberships.

[General Rules for Fundraising] [Grants] [On Air Fundraising] [Events] [Mailings]
[Sustaining Memberships] [Underwriting][Trades and Services]
[Stuff with the Station's Name on it] [Doorhangers][Other Resources] [Conclusion] [Back to top]

3. Events

Events can be rewarding in many ways. When planning events take into account not only the amount of money raised but also the amount of publicity generated about the station and the number of new listeners that such an event could add. Also, remember that sometimes it takes money to make money. One way to offset this is soliciting donations for the event. Be careful to remain realistic about what you can pull off and what won't strain your resources. Also, it is important to stay within the FCC regulations about announcing/promoting nonprofit events on air. You are not allowed to mention prices for any event, even nonprofit ones unless all of the proceeds from the event go to the station.

• Auctions
  
  Silent auctions are perhaps the easiest. Approach businesses and individuals for items to be auctioned, be sure to mention the business' name and address in appreciation. You could announce items on air and take bids on the phone or the auction could be done in combination with another event such as a concert or fair. Have a drop box for people to put their bid and contact info in. Another idea that Pete had was a cheap art auction. Get artists and craftspeople, amateurs and professionals, to donate art. Prices can start at a dollar and can go pretty high for the fancy stuff. For example, a lot of potters have a giant pile of beautiful pieces that would go for a lot of money, but have some small defect that prevents them from being sold in professional settings. Get one of your fast talking DJs to be the auctioneer. Pete said that they raised $1200 this way one night and everyone went home with something nice and had a great time.

• Concerts or Fairs
  
  So how can you raise money on a small scale? Have a benefit concert with local bands (we had a concert that cost $6 at the door and raised $1300- enough to build our entire studio). Have a party at someone's house, ask people to bring food and drink, have your DJs take turns spinning records all night and charge $3 at the door (we made $250 that way one night). Do screenings of local independently produced movies or videos. Have a poetry reading. Ask local performing arts spaces to donate the proceeds from one night of performance. Set up tables at local events and ask for donations. Make T-shirts and sell them. Make your fiscal sponsor and mailing address widely known, so it's easy for people to send you checks.
  
  Try to find bands and other entertainment that will perform for free or at a reduced cost. Offer volunteers free admittance or reduced tickets. Offer station members reduced tickets as a sign of appreciation and to encourage people to become station members. Ask around for sound equipment that could be used for free or at reduced cost. Start small- large music festivals take a lot of planning and volunteers. You want to add to the station work, not take away from it.

• Dining on Air
  
  This is an interesting idea that has worked pretty well for some bigger community stations. Basically, give people an excuse to throw a party in your name, where the station gets the money raised. Set dates for when you'd like to have people have parties for your station's benefit at least a month in advance. This way you can hype it up on air. Explain the deal on air, repeatedly over the course of the month leading up to the event: ì You have a dinner party on ___ date and invite all of your friends. Here at the station we will play music in the style of your choice for a two-hour period during your party and thank you on air. The $10 (or so) a head that you charge for the dinner will go to ____LPFM and you'll be helping to support this community resource station as well as getting to see your friends at the same time. Even if you don't have a lot of room at your house- a party of three is still a party. Call and register now!" or something like that. If you have the capability and desire to you could even interview the party people on air during their music time and encourage other listeners to call and sign up. The reasons you'd want to have people register their party are because it kind of holds them to having it and you'd definitely want to drop some programs/ handouts/ donation can/stickers/etc. off at the house prior to the event. Some stations have even printed up invitations for the hosts to mail out to their family and friends about the dinner party.

• Radio Bingo
  
  Barry told us about this phenomenon and says that it works really well for stations in Canada. Remembering the packed parking lots of Bingo houses in my hometown, I realize that there is an audience. First pick a date for Bingo night and announce it frequently on air, maybe the first Sunday of every month at 7pm. Get corner stores around town to sell the cards for a dollar to five dollars each depending on the prizes you can offer winners. (Remember most people can play more than one card at a time, so you may want to encourage purchases by offering six cards for the price of five.) Then do the calling on air and have winners phone in with their bingos. From there they would either drop the card by for verification or mail it in to collect their prize. Heck, you could even play Ed McMahon and drive to their home with a minidisc recorder and record their joy as they accept their prize. Of course, it depends on what prizes you can muster up. Again, aim for donated prizes rather than cash prizes- at least until your radio bingo game gains popularity.

• Book and Record Sale
  
  Or any type of sale. Take donations in the weeks ahead (advertise on flyers that not only is there going to be a sale but to drop donations off ahead of time). You can encourage people to price their stuff before they drop it off but you'll still need volunteers to price items, to help set up and to take money. Have the sale at a venue that can be indoors or out depending on the weather. Outdoors near a busy street is ideal. (Variation: a series of garage sales)

• Tabling
  
  Try to have a table at as many events as possible. Have a donation can, station membership forms (so they can be on you mailing list) and some stuff to sell. Donated baked goods that you are selling are a good way to get people to check out the table. Have station programs and other information about the station available. Going to as many events as possible is a great way to get out there and make your station known. Anyone you can add to your mailing/contact list can and should be notified about your events and fundraisers.

[General Rules for Fundraising] [Grants] [On Air Fundraising] [Events] [Mailings]
[Sustaining Memberships] [Underwriting][Trades and Services]
[Stuff with the Station's Name on it] [Doorhangers][Other Resources] [Conclusion] [Back to top]

4. Mailings

Though we don't have any figures on this it's safe to say that postcards are cheaper but return envelopes are helpful for getting donations. Definitely send out notices of the station's date of takeoff to everyone on the mailing list of the sponsoring organization. Try getting inserts in other organizations mailings for free or low cost. If you find that mailings are successful for your station it is okay to have multiple mailings a year. A good mailing campaign needs a good database.

• Postcards
  
  Cheaper and less waste, postcards could be an answer for small budgets. Think of what will make them stick out in the mail; bright colored paper, an eye catching graphic and even (if you don't do bulk mailing) cute stamps. Keep the message simple and encourage listening and feedback of any kind and of course give them an address for donations to be sent to.

• Letters
  
  Good to double up and send out show programs at the same time. Write and tell people about all the great new developments at the station. Don't just ask for money- share information and give people a reason to listen. If you are going to spend the money sending out a letter include a self-addressed envelope for donations and/or comments about the station. Including an envelope for donations tends towards a higher success rate, which explains why all those other pieces of mail asking for money include return envelopes and often pay for postage.

[General Rules for Fundraising] [Grants] [On Air Fundraising] [Events] [Mailings]
[Sustaining Memberships] [Underwriting][Trades and Services]
[Stuff with the Station's Name on it] [Doorhangers][Other Resources] [Conclusion] [Back to top]

5. Sustaining Memberships

Sustaining memberships should play a pretty big role in your fundraising strategy. Individuals who give regularly are frequent listeners; potential volunteers and the stuff radio stations should be made of. Businesses that become sustaining members are publicly saying that they agree with your station's mission of giving radio back to the people. Individuals and businesses are agreeing to be partners with you- not just giving you money on a regular basis. Getting people to commit to sustaining memberships is an important of making people invested in the station. Also, remember that many people are afraid of commitment and the process of becoming a sustaining member needs to be as easy as possible. Sustaining memberships are pretty much essential for any on air fundraising- don't just give people the option of donating $20 today, let them choose to give $20 every month. If you can, try to set up direct deposit from their account to yours.

To help sell sustaining memberships give them reasons to be members. Send out email and/ or print newsletters, give them a program of your station's shows, give them free stuff (see ìstuff with your station's name on it" below) For individuals: Create relationships. Be inclusive and offer a wide range of memberships. Sustaining memberships might be $12- $1200 a year which breaks down to sponsorships of $1 a month to $100 dollars a month. Maybe have sponsors who donate over $100 get a free T-shirt. However, be careful about giving away too much stuff as it will cut into your profits. For businesses/organizations/groups: Create relationships with the local businesses first as they are more likely to feel invested in the community. Plus, you have something in common- you are both the little guy. Sustaining memberships from businesses are similar to underwriting but better.

[General Rules for Fundraising] [Grants] [On Air Fundraising] [Events] [Mailings]
[Sustaining Memberships] [Underwriting][Trades and Services]
[Stuff with the Station's Name on it] [Doorhangers][Other Resources] [Conclusion] [Back to top]

6. Underwriting

Yours is a non-commercial station but you are allowed to do something called underwriting. Underwriting is when a group or company donates money to the station and expects some on air gratitude in return. They may even give a station something to read about their products services. This is similar to what PBS stations do, specifically Sesame Street. ìThis program was brought to you by the letter "P" ." National Public Radio does a lot of this while a lot of community based stations tend to shy away from underwriting being a big source of income.

Community based stations often develop pretty strict rules about what organizations they will accept underwriting from. Local, small businesses are most often preferred, which is good for building community support for a station. To avoid tricky situations down the road we suggest figuring out guide-lines for acceptance of underwriting (if your group want any at all) before you accept any. Be careful to stay within the boundaries of noncommercial radio.

[General Rules for Fundraising] [Grants] [On Air Fundraising] [Events] [Mailings]
[Sustaining Memberships] [Underwriting][Trades and Services]
[Stuff with the Station's Name on it] [Doorhangers][Other Resources] [Conclusion] [Back to top]

7. Trades and Services

There are many possible trades that can be done with other organizations and some businesses.

1) If a group will put an ad for your station in their newsletter then the station will read off the group's name and how to contact them.

2) Work together with a local bookstore by printing up two sided bookmarks that highlight the station on one side and the store on the other.

3) Trade on air announcements for permission to set up a table at a community event, a concert or a game. You promote them = they promote you.

4) Find some lucky volunteers and trade their labor hours (not too many hours, you want volunteers after all) for $$ or whatever else you need to someone who needs a job done.

5) You've seen them before- a parking lot full of radio lovers, soap and water (preferably donated by whoever's parking lot it is) + dirty cars = car washes!

6) Don't just have an information table, have a hot dog stand.

8. Stuff With the Station's Name on It

Stuff, stuff and more stuff. It's the American way eh? T-shirts. Just as there is a conference for everything there is a T-shirt for everything too. So there might as well be one for your station. Take a little time with the design, it helps sales if people want to wear it and if nothing else you are going to have to look at it for awhile. Also, creative types will find that screening shirts yourself isn't very hard and can save a lot of money on production. Buttons, magnets, cups, mugs, and anything else that you can get your station's name printed on that someone might want. The key being "that someone might want".

My father is a high school football coach and he's getting better and better at raising money for the latest in football technology. One thing that has worked really well for him is getting local businesses to agree to have their name printed on a credit card sized piece of plastic. The businesses also agree to give a 10% discount or so to whoever shows the card. Or two burgers for the price of one. Or a free small soda with the purchase of a pita sandwich and a fries. He usually has the deals written on the card. The football players, booster club (which is what you are for your station after all) and coaches sell the cards for $5- $15 depending on how good the deals are. The Wichita Southeast High School Buffaloes have also done well selling coupon books.

[General Rules for Fundraising] [Grants] [On Air Fundraising] [Events] [Mailings]
[Sustaining Memberships] [Underwriting][Trades and Services]
[Stuff with the Station's Name on it] [Doorhangers][Other Resources] [Conclusion] [Back to top]

9. Doorhangers

Those do not disturb door hangers have come along way and might be good for covering your area of listenership. Call around to see what the cheapest price in your area would be for printing official ones with cut out holes up or make them yourself. One design is to cut an 8 1/2" by 11" piece of paper (preferably cardstock) in half lengthwise and make a hole with a hole punch at the top. Then take a rubberband through the hole and back through itself for a hanger. Door hangers should educate about the station while soliciting money. Also, teams of people hanging door hangers are excellent for community outreach to whoever is around on that day.

10. Other Resources

Our friend Barry told us about a group called DEI works exclusively with public radio stations on fundraising. While they work with the big stations and most of their stuff reflects that they do employ a woman named June Fox who works with smaller stations. Her and her company can be a good resource and it costs about $750 a year to access their resources, but that could pay for itself if used right. Call to check them out and learn more.

There are hundreds of companies that sell ideas and stuff for groups to raise money. Many can be found on the internet. Search but be careful- they make money off of your group and don't guarantee you a return or profit. However many ideas and concepts about fundraising can be accessed for free online or at your library.

The National Federation of Community Broadcasters (NFCB) is as the title implies, a resource center and alliance organization for community stations- large and small. They publish a booklet about the ins and outs of underwriting and offer other assistance for fundraising. To learn more about them and how to become a member go to www.nfcb.org

[General Rules for Fundraising] [Grants] [On Air Fundraising] [Events] [Mailings]
[Sustaining Memberships] [Underwriting][Trades and Services]
[Stuff with the Station's Name on it] [Doorhangers][Other Resources] [Conclusion] [Back to top]

10. Conclusion:

Remember: BE CREATIVE. You know your community- better than we do. You are concerned about your communities' needs or you wouldn't have a radio station. So, tap into those needs even more and promote your station at the same time. We hope these ideas help you get started. Write us and tell us what kind of fundraising works for your station. And to finish in proper style: another quote Lorenzo Milam, author of "Sex and Broadcasting" with one last idea for fundraising.

"So we are back on the dependence on goodwill of the listeners. But as a reaction to the disgraceful humbuggery of the standard Marathon, we have evolved the Minimarathon (basically an invention of KDNA, St. Louis). Minimarathons are never announced ahead of time. The method is one of dark surprise: after a good speech or a fine set of music, the on the air peep stops whatever it is that she is doing and announces that she will not continue with the programming until she has one or two or three pledges. The secret of the Minimarathon is

1) a definite and oft repeated goal for you (and the listeners) to work towards;

2) a constant repetition of the telephone number;

3) good humored ñ never threatening nor oppressive- plea for calls;

4) an effective follow- up technique. Ideally there should be no more than two mini- marathons a day. The rest of the time listeners should be left alone, except for i.d.'s. (station identifications). The theme should be that since people are listening to your voice, the programming is obviously important to them. That this programming is not free, but rather- costs some $3000 a month. That in return for their subscription, the listener gets something tangible. Minimarathons should be run until the announced goal is met. The telephone number should be repeated at least once a minute. And the resultant pledges should be rewarded by several hours of shutting up."

[General Rules for Fundraising] [Grants] [On Air Fundraising] [Events] [Mailings]
[Sustaining Memberships] [Underwriting][Trades and Services]
[Stuff with the Station's Name on it] [Doorhangers][Other Resources] [Conclusion] [Back to top]