[BC] Underwriting as a source of income

[ChuxGarage at aol.com]

In a message dated 2/1/2009 5:01:09 AM Central Standard Time, 
broadcast-request at radiolists.net writes:

> 501(c(3)) stations are mostly school, government and church run. 
> There are a few "private" operations, but since they're neither 
> educational, state, or religious, achieving 501(c(3)) status is 
> difficult.  But it can be done.
> 

I hate to burst any bubbles, but 501(c)(3) status is not difficult to get, 
nor is it unusual.  Maybe it should be, but if you are starting a nonprofit 
organization out from scratch, it is remarkably easy to do.  Converting an 
non-501(c)(3) organization into one is an entirely different story.  That is very 
hard to accomplish. There are also more than a dozen permutations of "501" IRS 
status. For real advice, I suggest talking with a qualified CPA or Tax Attorney.

As you know, there are a lot of not-for-profit organizations that own 
broadcast facilities.  Most do rely heavily on either donations or underwriting. In 
the eyes of the station, the underwriting is simply a polite "thank you" for 
making a donation.  Of course, if you stop making those "donations," then the 
"thank you's" are likely to stop.  To take it a step further, in noncommercial 
religious TV and radio, a church, preacher or other entity makes a significant 
contribution to the station, and the station coincidentally chooses to run 
their program on the air.  Of course, if the donations stop, the broadcasters 
seem to stop as well.

As for the tax deductibility of the donation, most businesses really don't 
care if it is called a donation.  I suspect most write it off as "advertising."  

Chuck Conrad
KZQX Radio
www.kzqx.com 

#63;c=us%26cs=19%26l=en%26s=dhs%26~ck=anavml)