Tag Articles: Public Radio Capital

Public Radio Capital / Public Radio Fund

Mission

Public Radio Capital (PRC) is a 501(c)(3) organization whose mission is to strengthen and expand noncommercial media so that local communities nationwide have access to more in-depth information, unbiased news, diverse music and cultural programming.

History/Structure

Since its founding in 2001, PRC has worked with more than 200 public radio organizations ranging from first-time station owners to the largest, multi-channel public radio operators in the country. PRC has helped these organizations buy and finance new channels, preserve existing public radio outlets, and strengthen their organizations and services.

Public Radio Fund (PRF) was established in 2007 to help public broadcasters and local groups gain access to short-term capital on an affordable basis so that they may quickly and aggressively compete for valuable radio channels when they come on the market. The Fund’s near-term goal of raising $15M in loans is thought to be the largest capital-raising effort to be attempted for the expansion of noncommercial radio channels.

PRC derives income from fee-based work with clients and from contributions and grants from individual and foundations. In addition to core consulting and brokerage services, PRC owns three radio licenses.

PRC’s Board of Directors oversees both entities. PRF has an Advisory Council with rich experience in business, finance, social investing and leadership of public broadcasting. The manager of Trillium Asset Management Corporation’s Durham, NC branch, Farnum Brown, is a member of PRF’s Advisory Council.

Impact

As of December 2008, PRC reports that it has helped public radio operators extend their reach to 33 million people through transactions valued at nearly $170 million.

PRC believes the need for strong public media has never been greater. In recent years, there has been an alarming downsizing in the newsrooms of print and broadcast journalism, along with an explosion of infotainment that passes as news. Corporate media consolidation in the commercial sector during the last decade has deprived many communities of locally owned media. The result has been the loss of independent voices and coverage in depth of substantive issues that matter to people.

There are currently more than 1,700 noncommercial radio stations characterized as public or community, they have an estimated combined $3.5 billion market value of broadcast

licenses. Many of these stations have the potential to reach significantly more people given more effective broadcast schedules, stronger financial management and greater support from their communities. These stations are a critical resource for public radio.

Vision

PRC has adopted an ambitious set of short and long term goals:

  • Protect. Develop new ownership or operating structures for existing public radio channels so no community loses current public radio services.
  • Expand. Help public media organizations acquire additional radio assets that allow them to increase program choices and services for new and existing audiences in their communities.
  • Improve. Increase the capacity of public radio organizations to expand services for new listeners.
  • Innovate. Develop at least one new public media company to leverage expertise in revenue generation, radio format development, and multimedia solutions to attract new audiences nationwide.
  • Finance. Raise capital for investments in significant public radio expansion to increase public radio’s core assets, audiences and impact.
  
Investing with PRF

Clients can purchase unsecured promissory notes in PRF beginning at $15,000, which earn a financial return of 0-3 percent for 3-year notes. Investors may choose the interest rate based on their ability to support the mission. The notes pay simple interest annually on August 31 of each year.