<html><head><base href="x-msg://23/"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; ">I think it would be worth seeing if this is really a practical problem for many CR stations before making this a priority issue for the CMA.<div><br></div><div>How many stations really raise so much advertising or commercial sponsorship on air that it is a real problem? The ability to off set the commercial revenue against volunteer time surely means this is only a problem for a few stations unless I am completely out of touch.</div><div><br></div><div>We operate in a wealthy and dynamic business area and - with some considerable effort - can get advertising and some sponsorship from local businesses. We also get some grants which are tied to particular projects and donations and membership fees. The advertising & sponsorship revenue is the major source of "free" money to pay our bills. I can envisage us getting to a point where it could become 50% or even more of our "real" money but the volunteer hours total when monetised using OFCOM's formulae means it ends up as being a single figure percentage of our total revenue for OFCOM purposes.</div><div><br></div><div>The logic of the 50% rule was to prevent CR stations becoming totally commercial and being funded solely by advertising and commercial sponsorship. A station with a CR licence is effectively protected from being taken over by a commercial rival (and being renamed Heart or Capital!). A CR station solely funded by commercial revenues would be in danger of (a) being challenged as to whether it really is a community station and (b) being changed to a commercial licence and therefore becoming vulnerable to a take over (although I don't know of any precedent for this - or even whether OFCOM has the power to do this- but they could certainly advertise a commercial licence for exactly the same area).</div><div><br></div><div>Clive Glover</div><div><br></div><div>Radio Verulam, St Albans</div><div><br></div><div><br><div><div>On 9 Oct 2010, at 08:46, Ian Hickling wrote:</div><br class="Apple-interchange-newline"><blockquote type="cite"><span class="Apple-style-span" style="border-collapse: separate; font-family: Helvetica; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; font-size: medium; "><div class="hmmessage" style="font-size: 10pt; font-family: Tahoma; "> <br>I think most of us understood them Jaqui.<br>More so now - thank you.<br>But what exactly is the CMA doing about changing this outdated and punishing regulation?<br> <br>Ian Hickling<br>Partner<br>transplan UK<br> <br><hr id="stopSpelling">Date: Fri, 8 Oct 2010 15:46:23 +0100<br>From:<span class="Apple-converted-space"> </span><a href="mailto:jaqui.devereux@commedia.org.uk">jaqui.devereux@commedia.org.uk</a><br>To:<span class="Apple-converted-space"> </span><a href="mailto:cma-l@commedia.org.uk">cma-l@commedia.org.uk</a><br>Subject: [cma-l] Community radio 50% rules - understanding them<br><br>Dear all<br><br>Just a clarification on the revised 50% rules for community radio following the CR Amendment Order:<br><br><div class="ecxgmail_quote"><br>No more than 50% of your income can come from on air advertising and/or sponsorship.<br><br>The Amendment Order does however now allow that more than 50% can come from grants, Service Level Agreements etc.<br><br>Volunteer time can be counted as part of the "income" mix, but it must be auditable (timesheets, signing in sheets etc). However, if 50% of your income does come from on air ads etc, then only 25% of your income can be from volunteer in kind time.<br><br>So e.g.:<br><br>1 - station has a Big Lottery grant of £50,000 for the year (lucky it!), on air ads etc £20,000, volunteer time £10,000 - that mix is OK.<br><br>2 - station has a BL grant of £20,000, on air ads £50,000, volunteer time £30,000 - NOT OK as volunteer time exceeds 25% of the total<br><br>3 - station has BL grant of £25,000, on air ads £50,000, volunteer time £25,000 - is OK as volunteer time 25%<br><br>4 - station has BL grant of £20,000, on air ads £50,000, volunteer time £30,000, OFF air ads/sponsorship £20,000 - is OK as off air does not count towards the 50% limit<span class="Apple-converted-space"> </span><br><br>Hope that helps....<br><br>Jaqui<br clear="all"><font color="#888888"><br>--<span class="Apple-converted-space"> </span><br>Jaqui Devereux<br>Director, Community Media Association<br><br><br></font></div><br><br clear="all"><br>--<span class="Apple-converted-space"> </span><br>Jaqui Devereux<br>Director, Community Media Association<br><br><br><br>_______________________________________________ cma-l mailing list -<span class="Apple-converted-space"> </span><a href="mailto:cma-l@commedia.org.uk">cma-l@commedia.org.uk</a><span class="Apple-converted-space"> </span>Community Media Association -<a href="http://www.commedia.org.uk">www.commedia.org.uk</a><span class="Apple-converted-space"> </span>_______________________________________________ To manage your mailing list subscription please visit:<a href="http://mailman.commedia.org.uk/mailman/listinfo/cma-l">http://mailman.commedia.org.uk/mailman/listinfo/cma-l</a><span class="Apple-converted-space"> </span>_______________________________________________<br><br>cma-l mailing list -<span class="Apple-converted-space"> </span><a href="mailto:cma-l@commedia.org.uk">cma-l@commedia.org.uk</a><br><br>Community Media Association -<span class="Apple-converted-space"> </span><a href="http://www.commedia.org.uk">www.commedia.org.uk</a><br>_______________________________________________<br><br>To manage your mailing list subscription please visit:<br><a href="http://mailman.commedia.org.uk/mailman/listinfo/cma-l">http://mailman.commedia.org.uk/mailman/listinfo/cma-l</a><br></div></span></blockquote></div><br></div></body></html>