NPR gift doesn’t mean a free ride

As KPCC-FM (89.3) hits the airwaves today with a new fund drive and fellow National Public Radio affiliate KCRW-FM (89.9) mails solicitation letters to its members, they will remind their listeners that -- in spite of a windfall NPR received last week -- public radio still needs money from its public.

San Diego philanthropist Joan Kroc willed $200 million to NPR with a bequest announced last week, but there could be pitfalls if listeners misunderstand the scope of the gift, or think it will trickle down to their favorite stations.

“It’s certainly something we’re concerned about,” said Bill Davis, president of Southern California Public Radio, which operates Pasadena-based KPCC, and which hopes to raise $1.3 million over the next 10 days. “We’re waiting until the microphones open up, and we’ll see what happens. My sense is KPCC will do just fine, and this won’t have a significant adverse impact.

“It’s probably just as likely Mrs. Kroc’s largess could have a positive impact,” he said, noting that universities, nonprofits and other institutions often see donations increase after large, high-profile bequests.

Santa Monica-based KCRW is being more aggressive and trying to drive the message home, airing announcements explaining the gift to NPR, and reminding listeners that the station still needs their support to meet its own operational expenses.

Money doesn’t flow from NPR to its member stations, but the other way around. Local stations pay to air NPR programming, dues that make up about half of the network’s annual $104 million budget. KCRW, for example, paid about $1.1 million in dues to NPR this year, about 10% of the station’s total budget. NPR derives the other half of its income from grants and underwriting sponsorships.

Referring to Kroc’s gift on his show Saturday morning, “Weekend Edition” host Scott Simon said, “People on the outside have been calling as if we’d won the lottery.” He stressed, though, that the “long-term bequest will be saved, not spent.”

NPR announced that the money would go into its endowment fund, created a decade ago to ensure the network’s long-term financial health. Sitting there, Kroc’s gift will generate about $10 million a year.

“Mrs. Kroc wanted this to be additive, and not a replacement for other sources” of revenue, said Ken Stern, NPR’s executive vice president, who said the network would confer with member stations about how best to use the additional income. “We’re focused on making sure this is a transformational gift.”

While some stations might now ask for a reduction in NPR dues, Davis said the money would be better spent developing new shows, attractive to people who aren’t already listening to NPR, and improving existing programs.