Underwriting is defined as support for KVRF-FM programming and the station in general in the form of funds, goods, or services and requires KVRF-FM, as a non-commercial licensee, to identify its programs’ sponsors on the air in accordance with Section 317 of the Communications Act of 1934. The content and scheduling of these identifications must meet with provisions of Section 399 of the Act to ensure that they will not constitute impermissible advertising (see On-Air Acknowledgement Guidelines, below). A contractual agreement between KVRF-FM and an underwriter explicitly does not confer the right upon the underwriter to influence station policy, content, or program selection.
II. BENEFITS FOR UNDERWRITERS
III. NON-COMMERCIAL MISSION
Licensed as a noncommercial educational FM station, KVRF-FM must adhere to Federal Communications Commission policies and procedures related to donations and underwriting announcements. KVRF-FM abides to the FCC requirement that the service of underwriting remain free of commercial and commercial-like matter.
IV. UNDERWRITING RATES
KVRF-FM’s station manager, in conjunction with the Board of Directors, establishes underwriting rates. Rates will be based on fair market value for air time. KVRF-FM will give special consideration and special rates to non-profit and not-for-profit organizations. Underwriting rates will be published in KVRF-FM’s underwriting information packet for distribution to any interested parties.
• Length of underwriting contracts: After an initial contract period of no less than 3 months, all underwriting contracts will revert to ongoing unless the underwriter and station manager agree on another arrangement. Contract periods of less than 3 months may be negotiated under special circumstances; however, these will be the exception, not the rule.
• Rate increases: If KVRF-FM increases underwriting rates, existing contracts will not be affected until their initial contract periods expire, unless the underwriter requests changes to an existing contract during the initial contract period, in which case any new terms will be negotiated at the new rates. New contracts and contracts reverting to ongoing status will take effect at the new rates.
• Changes to underwriting schedule initiated by KVRF-FM: Occasionally, programming changes or other circumstances may make it necessary or desirable for KVRF-FM to move an underwriter’s acknowledge from one time slot to another. These instances are rare, and KVRF-FM will consult with the underwriter to discuss any such changes and their implications before making any alterations. When KVRF-FM initiates a change that has financial implications for an underwriter, the following policies shall apply. KVRF moves an underwriter’s acknowledgement to:
• More expensive slots: If KVRF-FM initiates a move to a higher-priced underwriting slot and the underwriter agrees to the change, the underwriter shall not pay the higher price for the duration of the time remaining on the initial contract. At the conclusion of the initial contract the underwriter shall have the option to remain in the assigned slot and pay the higher price or move to a less expensive slot.
• Less expensive slots: If KVRF-FM initiates a move to a lower-priced underwriting slot and the underwriter agrees to the change, KVRF-FM will not refund the difference in price to the underwriter for the duration of the time remaining on the initial contract. KVRF-FM will, however, provide the underwriter with additional late-night spots to compensate for the difference and to maintain the value of the underwriting contract. At the conclusion of the initial contract or an underwriter may cancel the altered schedule and contract and re-negotiate or continue with the altered schedule and contract at the existing rate.
IV. ON-AIR ACKNOWLEDGEMENT GUIDELINES
Underwriting acknowledgements may be either announced live by on-air programmers or, at the discretion of KVRF-FM, pre-recorded. Announcements will begin with a phrase stating general support for KVRF-FM or its programming (e.g. “Support for KVRF comes from”) from the business, corporation, organization, or individual providing funds, goods, or services to KVRF-FM, and will follow FCC guidelines for underwriting language.
Announcements may contain:
Announcements may not contain:
The KVRF-FM underwriting information packet contains examples of permissible and impermissible underwriting language. The station manager or his/her designated representative, will review all scripts with donors and/or underwriters before airing them to ensure that they meet KVRF-FM/RFP, and FCC guidelines.