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Underwriting Compliance Guide

Non-Commercial Educational Including LPFM

Underwriting Compliance Guide

Michelle Bradley, CBT

Revised February 7, 2025

REC Networks
https://recnet.com
202 621-2355

Table of Contents

Click a link below to review that chapter:

  1. Introduction
    1. About this Compliance Manual
    2. FCC Order #1
    3. Communications Act Section 399b
    4. A brief history of noncommercial radio in America
    5. Why is LPFM a noncommercial service
  2. Underwriting Basics
    1. Underwriting vs. advertising
    2. Why would a business want to underwrite?
    3. Messages on behalf of not-for-profit entities
    4. Remuneration is more than just cash
  3. Identification vs. Promotion
    1. Starting with a “business card”/avoid “menu” listing
    2. Calls to action
    3. Inducements, enticements, solution suggesting and seed planting
    4. Qualitative, quantitative & comparative statements; references to reputation, exclusivity or uniqueness
    5. Pricing, discounts and interest rates
    6. Endorsements/Testimonials
    7. Slogans
    8. Website URLs.
    9. Affinity/membership cards
    10. Don’t try to sound like NPR/PBS
    11. Old time radio commercials
  4. Other prohibited acts
    1. Requests from political campaigns
    2. Payola and plugola
    3. Program-related products
    4. Certain types of businesses with restrictions on messages
    5. Smoke shops 
    6. Emergency Alert System (EAS) elements
    7. Sponsorship of station elements such as the studio 
  5. Third-Party Fundraising
  6. Station policy
    1. Longer is not better
    2. Live copy vs. prerecorded copy
    3. Other things to avoid
    4. Live remotes  
    5. Review and approval process
  7. Consequences for underwriting violations

DISCLAIMER: THIS MANUAL WAS NOT WRITTEN BY AN ATTORNEY AND THEREFORE SHOULD NOT BE CONSTRUED AS LEGAL ADVICE.  REC NETWORKS IS NOT RESPONSIBLE FOR ANY CONSEQUENTIAL DAMAGES THAT MAY ARISE FROM THE USE OF THIS MANUAL.  THIS GUIDE IS BASED ON OVER 25 YEARS OF KNOWLEDGE OF THE NON-COMMERCIAL (INCLUDING LPFM) BROADCAST SERVICE.

  • Underwriting Compliance Guide: 1. Introduction
  • Underwriting Compliance Guide: 2. Underwriting Basics
  • Underwriting Compliance Guide: 3. Identification vs. promotion
  • Underwriting Compliance Guide: 4. Other Prohibited Acts
  • Underwriting Compliance Guide: 5. Third-Party Fundraising
  • Underwriting Compliance Guide: 6. Station policy
  • Underwriting Compliance Guide: 7. Consequences for underwriting violations

Book traversal links for Underwriting Compliance Guide

  • Underwriting Compliance Guide: 1. Introduction ›

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