Controversy Over Shared Donor Lists Prompts Broadcast Agency to Revise Rules

Following is the text of new criteria on sharing donor lists

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that the Corporation for Public Broadcasting has created for the television and radio stations it finances:

I. Principles

A bedrock principle of public broadcasting is our support from the American people. Because we operate in the public interest, our future relies on a bond of public trust.

This bond extends to millions of viewers and listeners living in hundreds of local communities of every size and description across the country.

Public broadcasting cannot afford, either in appearance or in fact, to undermine that bond.

For these reasons, effective immediately, to receive a C.P.B. station grant, a station must certify that it meets each of the following public-interest standards. C.P.B.-funded stations must:

* Control — maintain active control of their membership and donor lists;

* Privacy — respect the privacy of all subscribers and donors by offering a means by which the names may be suppressed upon request and suppress names as requested;

* Limits on use — not sell, rent, lease, loan, trade, give, donate, transfer, or exchange membership or donor names to, with, or from any candidate for public office, committees or organizations supporting a candidate, political parties, or organizations that solicit funds for use in political campaigns for any purposes whatsoever; and

* Record keeping — maintain complete and accurate records of all uses of membership and donor lists for fund-raising purposes, and must furnish such records on request.

II. The Law

A. Section 396(k)(6)(B) of the Communications Act of 1934, as amended, (“the Act”) provides that “station grant funds shall be distributed to licensees and permittees of such stations in accordance with eligibility criteria (which the Corporation shall review periodically in consultation with public radio and television licensees or permittees, or their designated representatives) that promote the public interest in public broadcasting . . .

III. Interpretations

A. The Corporation, following consultation with the national membership organizations and representatives of the station community, has determined that grantees should not engage in the exchange, rental, or sale of donor or member names to, from, or with any candidate for public office, committees or organizations supporting a candidate, political parties, or organizations that solicit funds for use in political campaigns. Such practices undermine the public trust, and are inconsistent with the public interest in public broadcasting.

B. The Corporation requires that grantees maintain complete and accurate records by which it may be assured that grantees are in compliance with all applicable laws and regulations of the federal government, and the eligibility requirements for public telecommunications entities as established by the Corporation.

IV. Compliance Requirements

A. Effect

1. All public telecommunications entities, including all station grant recipients of the C.P.B., must do the following:

a. Annually certify to the C.P.B. their continued compliance with the laws and regulations of the Internal Revenue Service, and with all other applicable federal law or regulations governing political activity and lobbying in effect at the time of certification;

b. Not sell, rent, lease, loan, trade, give, donate, transfer, or exchange their membership or donor names to, with, or from any candidate for public office, committees or organizations supporting a candidate, political parties, or organizations that solicit funds for use in political campaigns for any purpose whatsoever;

c. Maintain active control of their membership and donor lists, and take all appropriate measures to insure against unauthorized use of such lists including requiring any third party, including but not limited to list brokers, mail- list management organizations, friends’ organizations, fund-raising organizations, or advertising or public-relations agencies to abide by a grantee’s compliance requirements; and

d. Periodically inform members/donors of any potential for sale, rental, lease, loan, trade, gift, donation, transfer, or exchange of their names; and offer a means by which the names may be suppressed upon request; and suppress names as requested.

2. All public telecommunications entities, including all grantees of the Corporation, must maintain complete and accurate records of all uses of membership and donor lists for fund-raising purposes, and must furnish such records on request.

B. Result of Non-Compliance

1. At its discretion, C.P.B. may disqualify grantees from eligibility to receive, in whole or in part, station grants or other C.P.B. grants or awards.

V. CPB Procedures for Compliance and Certification

A. Documentation

1. Each recipient of a C.P.B. station grant, after reviewing the above information, should develop documentation indicating the manner of compliance with this requirement.

2. The documentation should be kept at each station and made available to C.P.B., upon request, to determine the fact and extent of compliance. The documentation should also be made available to auditors who may be making periodic audits of a station.

B. Certification

1. C.P.B. will require that each recipient of a C.P.B. station grant annually certify its continued compliance with the mail list and partisan political-activities requirements. The annual certification will be part of the Certification of Eligibility form(s) which are included in the booklets sent annually to each grant recipient for the applicable C.P.B. station grant(s).

2. All such Certification of Eligibility forms must be completed in their entirety and signed by two different individuals: (1) an authorized official of the licensee responsible for signing grants and/or contracts for the licensee who has knowledge and authority to certify that the licensee and its station meet or exceed each of the eligibility criteria listed in the Certification of Eligibility (e.g., chairman, treasurer, or secretary of the board of directors, university vice-president for finance, president of the school board); and (2) the chief executive officer in charge of the operation of the station (e.g., president, general manager, or station manager).

VI. Other Requirements

Section 501(c)(3) of the Internal Revenue Code prohibits charitable organizations from engaging in “political activities,” including but not limited to political activities on behalf of or against a political candidate. The sale, rental, lease, loan, trade, gift, donation, transfer, or exchange of membership or donor names to, from, or with a candidate for public office, committees or organizations supporting a candidate, political parties, or organizations that solicit funds for use in political campaigns may constitute a political-campaign contribution or a political activity.

The Internal Revenue Service may revoke the 501(c)(3) status of any organization that fails to comply with its rules, and may levy fines in the nature of excise taxes, on the organization and/or its leaders who knowingly engaged in activities in violation of its rules.