Community Radio in The United Kingdom - Funding

Funding

Following pressure from the UK's Commercial Radio Companies Association, later merged into RadioCentre, the Community Radio Order 2003 includes varying funding stipulations based on a community radio station's proximity to a commercial radio broadcaster. No community radio station is permitted to raise more than 50% of its operating costs from a single source, including on-air sponsorship and advertising. The remainder of operating costs must be met through other sources. These can include public funding via grants, donor income, National Lottery funding or charities. Regulator Ofcom also makes available an amount of funding annually through its Community Radio Fund. Stations may apply for this money in the same way as other grant funding.

However, where a community radio station lies totally within the transmission area of a commercial station with a population coverage of under 150,000, no sponsorship or advertising may be sought and all funding must come from alternative sources. In a small number of areas where a commercial station covers a population of under 150,000, a community radio station may not be licensed at all. This protects the financial interests of smaller commercial stations.