No. 153National Public Radio

By Nicole Lewis

How it reached the top

Donations from foundations and corporations, as well as a new effort to

attract big gifts from individuals, strengthened fund raising substantially last year. A one-time $30.2-million gift from the Corporation for Public Broadcasting to upgrade the public-radio satellite system, which NPR operates for all stations, was a big help. But even without the CPB gift, support for NPR grew 78 percent.

The charity’s president, Kevin Klose, and vice president for development, Barbara Hall, visited foundation officials last year asking for contributions earmarked for National Public Radio’s endowment. The station currently needs $8-million to meet its initial goal of raising $30-million by December 2002. The visits resulted in several large grants, including two first-time gifts to the group: $1-million from the Doris Duke Charitable Foundation, in New York, and $250,000 from the Flora Family Foundation, in Palo Alto, Calif.

In addition, corporate underwriting nearly doubled last year, to $32-million, in part because fund raisers shared new research findings that showed, among other things, that 67 percent of listeners reported that their opinion of a company improved

when they heard that the company supported public radio. Corporations donate money to support various programs, such as “Morning Edition,” a news program, and are acknowledged on air for their support. Ms. Hall also added a staff member to help solicit that type of gift, and next year she plans to hire another person, bringing the number of people who solicit corporations to nine.

Also helping to increase fund raising: NPR started the President’s Council, designed to cultivate major donors to and future trustees of the National Public Radio Foundation, the fund-raising arm of the broadcasting service. Each of the 100 members annually contributes at least $5,000 to the charity’s endowment.

Biggest fund-raising challenges

Because National Public Radio is prohibited in its bylaws from directly soliciting contributions from listeners, individual donations account for a small part of support. However, relying on corporate and foundation gifts for its operating budget presents several challenges for the organization. “Think of us as a university without any alumni,” says Ms. Hall. “We can’t buy or rent [donor] lists, we can’t go on the air. It’s hard when you don’t have a base of individual donors.” The reliance on these two sources also makes the charity especially vulnerable to a faltering economy, says Ms. Hall. To try to counter this vulnerability, NPR is expanding its endowment, which officials hope will eventually reach $100-million.

And while 2000 was a banner year for corporate gifts, nearly 40 percent came from technology companies, says Ms. Hall. Since those companies have been particularly hard hit in the economic slowdown, the organization plans to turn to other places to fill the gap, companies “that are doing well in this economy.” In fiscal year 2001, which ended September 30, corporate gifts decreased 9 percent from the year before, Ms. Hall says.

After the September 11 terrorist attacks

The charity expects to incur $5-million in unbudgeted expenses during its news coverage of the attacks. After approaching several foundations for assistance in making up part of the expense, the group received its first grant last month from the John D. and Catherine T. MacArthur Foundation, which gave $400,000.