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SESSION D.2: HANDOUT
FUN FINDING FUNDING
While non-profit organisations are less vulnerable to 'bottom
line' considerations than many other types of institutions, they
must still ultimately come to terms with the hard realities of
financing their project. There are limits to what can be asked
of volunteers. Also, the very success of a small, mainly voluntary
project will eventually present the need for paid staff, larger
premises and increased supplies. Given this inevitable dynamic,
it is important to inquire how non-profit projects generally fund
themselves.
While there are differences from country to country, depending
on political ethos, traditions and history, in general studies
show that non-profit voluntary organisations are funded through
a mix of sources. And generally the breakdown follows this pattern:
* Private fees/Membership/ Sale of services etc. 47%
Public Sector Funding 43%
Private Giving 10%
Given that the highest figure is for sales of services, can community
media interpret this as indicating advertising as a significant
source of income?
If a community media project is making any attempt to deliver
alternative, empowering and developmental programming, it will
not fit into the generally accepted commercial media model, therefore,
the usual commercial sources of financing the enterprise, such
as advertising, won't be as readily available.
What to do? Change to a commercial format? Or look to other sources
of income?
Research shows that a great deal of the 47% income to non-profit
projects comes, not from advertising, but from sales of other
services, such as training. Non-profit organisations in the fields
of culture, education and information, derive the bulk of their
income from private fees and charges for services.
The second significant source of income (43%) is indicated as
being from public sector funding. Non-profit organisations, far
from seeking to substitute for state activities, seek to facilitate
the expansion of state services by delivering these services for
a fee. This approach provides a dynamic for the expansion of government
financed services without a corresponding expansion in the scale
of the state apparatus.
This approach to funding community media services through
charging for media training and for the dissemination of government
information offers community media a secure source of income through
a range of activities more compatible with its ethos of community
development and empowerment.
*Source 'The Emerging Sector' The John Hopkins University
1994.