Radio Station Brings In Cash, Builds Audiences for Seattle Music Groups

The Bullitt family, which built tremendous wealth through its successful broadcasting empire, has long been in the forefront of philanthropy in Seattle. Over the years, family members have given away millions of dollars to environmental causes and local arts groups, and they have played a key role in promoting classical music through their ownership of the classical radio station KING-FM.

When Dorothy Bullitt, the matriarch of the family, died in 1989, her two surviving daughters decided to sell off much of the family’s business holdings. But they also were determined to preserve classical-music radio in Seattle — and to insure that music groups there received a steady stream of income.

Through innovative philanthropy, they found a way to do both.

The sisters created a new non-profit organization, which they named Beethoven. Then they donated the radio station to the group.

Beethoven is governed by the Bullitt sisters, KING-FM’s manager, and representatives of the Seattle Symphony, the Seattle Opera, and the Corporate Council for the Arts, which raises money for many of the region’s non-profit arts groups.

The station distributes after-tax profits through Beethoven, in equal thirds, to the opera, the symphony, and the council, which in turn distributes its share to nearly 20 small classical-music groups. Since 1995, when the partnership was created, Beethoven has distributed more than $1-million to Seattle-area groups.

But the benefits extend beyond the financial contributions, says Peter Donnelly, president of the council, who also serves as president of Beethoven. “This station is a very important component in the development of audiences,” he says.

For example, the station produces two weekly programs that introduce children to classical music. Every Thursday, KING-FM broadcasts “Music from Starwind Studios,” which is heard in 600 elementary-school classrooms throughout the Puget Sound region, and on Saturday mornings, the station airs “Classic KID-FM.”

In addition, KING-FM broadcasts performances by a wealth of local music groups, including the Seattle Opera, the Seattle Symphony, and the Northwest Chamber Orchestra.

Despite numerous links between the for-profit and non-profit organizations, representatives of the arts groups are not involved in the day-to-day operations of the station, says Peter Newman, the radio station’s general manager and program director. “There are clearly practical differences in running a non-profit arts group and running a for-profit radio station,” he says.

Perhaps the shrewdest aspect of the ownership arrangement was for the Bullitts to put the station in the hands of several groups, rather than giving it to a lone organization, says Mr. Newman. If any one group owned the station outright, that group might be tempted to sell the station to raise cash in a financial crisis.

The combined interests of the groups to maintain a strong classical station are likely to keep the station from being sold to owners who would switch to a more profitable format. But that is not to say that KING’s managers never worry about profits.

The bottom line, says Mr. Newman, is that he has to watch the bottom line. “The relationship between KING-FM and its owners could not exist if this were not a successful radio station,” he observes. “If we had poor ratings, this would not work, because the last thing we want to do is cost them money.”