Funding for Community Radio

Funding and revenue for Community Radio
A wide range of European, national, regional and local agencies support different Community Radio stations across the United Kingdom. There are however no dedicated funding streams for Community Radio apart from the Community Fund.

The Community Radio Order 2004 sets a limit on the amount of funding that Community Radio stations can draw from any one source. According to the Order, a Community Radio licence holder should not receive more than 50% of its funding each year from any one person. In this context, the 'one person' definition includes companies and other organisations.

The Community Radio Fund

Section 359 of the Communications Act 2003 says that Ofcom may make such grants as they consider appropriate to Community Radio licensees. The Department for Culture Media and Sport is providing up to £500,000 per annum for the Fund (since the Panel met on 20 June 2007 Ofcom has been informed by DCMS that some of the Fund may be used for alternative community media projects).

A consultation was undertaken by Ofcom in January 2005 and a policy statement was published in May 2005. The Community Radio Fund Panel (“the Panel”) was appointed in September 2005 and reports directly to the Ofcom Board. CMA treasurer Richard Hilton is the Community Media Association's representative on the panel.

Applications to the Community Radio Fund in 2007/08

Ofcom invited applications to the first round of funding for 2007/2008 on Thursday 19 April 2007. The closing-date for applications was the 16th May 2007.

The Panel met to make decisions on these applications on 20 June 2007 and have since announced that a total of £304,625 has been awarded to 22 applicants

A further round of applications will be invited on the 24th October 2007, with a closing date in November, and decisions in January 2008 (dates to be confirmed). At the time of publication, Ofcom cannot confirm how much money will be available to the Fund for the second round as Ofcom understands that DCMS may use some of the Fund for alternative community media projects. (At present there is £195,375 remaining in the Fund for 2007/08.)

The application form and guidance notes are available in the Community Radio Fund section of the Ofcom Website.

Applicants should refer to the guidance notes which gives further information about the Fund, eligibility to apply for funding, and how to apply.

Self generated revenue for Community Radio
In certain cases, Community Radio stations are able to generate revenue through on-air advertising and sponsorship.

Where advertising and sponsorship is allowed, the Community Radio station will be permitted to generate no more than 50% of its annual income from the sale of advertising and programme sponsorship.

Community Radio services prohibitedfrom generating on air revenue
The Community Radio Order 2004 contains a restriction that prevents Community Radio services in certain areas from including remunerated advertisements and sponsorship of programmes. The restrictionis defined as follows:

Any community radio station with a coverage area which overlaps by 50% or more with a commercial radio station with a *Measured Coverage Area (MCA) which contains more than 50,000 adults and no more than 150,000 adults will not be allowed to take any advertising or programme sponsorship.

This restriction was placed in the Order to protect small Commercial stations. The restriction will be reviewed 2 years after the first Community Radio station is licensed i.e.sometime after November 2007.

* Measured Coverage Area (MCA) for a Radio station is based on a measurement made by Ofcom. It refers tothe vicinity in which the signal strength from the service is strong enough to deliver "adequate" reception for potential listeners. Ofcom's definition of "Adequate reception" is further explained on their website

Additional sources of revenue for Community Radio
The restriction on advertising and sponsorship income in the Community Radio Order 2004 refers to remunerated on-air advertisements and sponsorship. This restriction does not apply to income generated from station websites, events and philanthropic donations.

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