Station Finances
Being a telecommunications entity operated by the University of Michigan, Michigan Public Media and Michigan Radio financial documents can be obtained from the university through the Michigan Freedom of Information Act.
Michigan Radio receives the largest portion of its funding from listener contributions (41% in FY 2005). These contributions are solicited during two annual fund drives, in the spring and fall, lasting about 7 days each. Listeners are encouraged to become "members" of Michigan Radio, but such membership does not include any publicly known privileges. So called "day sponsors," who contribute $365 per year, will have a short message read a few times on the air on a selected day. These listener fund drives are known to be very successful, and the station regularly exceeds its monetary goals.
The second largest revenue source for Michigan Radio is underwriting contributions (30%), and the underwriting company typically receives on-air mentions in return. The Corporation for Public Broadcasting provides 9% of station funding, and the university itself kicks in another 9%.
Having increased its net assets by over $2.5 million in the last 3 fiscal years, the station is clearly doing very well financially. According to a 2004 CPB report on the financial health of public radio stations, Michigan Radio was one of the few top 20 public radio stations in excellent financial health. That CPB report, titled "Having It All," was seen as a general warning to all public broadcasters, including Michigan Radio, to improve the bottom line of their stations. Although the station remains silent on the air about its financial goals, it is presumably amassing cash for the following purposes:
- Cushion unexpected shortfalls in revenue, should a fund drive fall short of its usual record-breaking performance.
- Rainy day fund, should federal or university support be reduced.
- Funding for major expenses, such as a new $1.5 Million tower for WVGR near Grand Rapids.
- Funding for expanded programming and services.
- Emergency expenditures, such as a lightning strike at the Ann Arbor studios in July 2005, that caused a few thousand dollars in damage.
| Michigan Radio Financial Information | ||||
|---|---|---|---|---|
| Year Ending June 30 of | 2006 | 2005 | 2004 | 2003 |
| Fund Drive Contributions | $2,545,000 | $2,212,975 | $2,126,367 | $1,980,700 |
| Underwriting Revenue | 1,385,000 | 1,305,348 | 1,280,278 | 813,878 |
| Total Revenue | 7,243,000 | 5,406,342 | 6,694,305 | 5,301,301 |
| Operating Expenses | 5,803,000 | 4,848,220 | 4,830,944 | 3,808,165 |
| Total Net Assets | 7,414,000 | 5,974,401 | 5,368,162 | 3,458,634 |
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