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Advertising or underwriting? Answers Carr finds could jeopardize non-profit status for PBS, NPR

Advertising or underwriting? Answers Carr finds could jeopardize non-profit status for PBS, NPR


Advertising or underwriting? Answers Carr finds could jeopardize non-profit status for PBS, NPR

The purging of the Deep State by the Donald Trump administration continues at breakneck speed.

The new FCC Chairman is opening up an investigation into NPR and PBS, claiming the non-profit organizations are running advertisements.

Part of the deal when you start a non-profit broadcasting company is that you won't take money from advertisers. Instead, you can air spots from underwriters. It’s a subtle yet significant distinction put in place by the FCC. From advertising you make a profit, from underwriting you recognize donations. 

Newly promoted FCC Chairman Brendan Carr (shown right) wants to look at the books, says Tim Graham is with Media Research Center.

Graham, Tim (MRC) Graham

“The chairman of the FCC, Brendan Carr, wants to investigate whether NPR and PBS are following the appropriate guidelines for airing what are basically commercials,” Graham said.

The reason for the distinction is that public broadcasters are held to a higher standard and are not allowed to air ads that often make false claims or exaggerations about products.

Not living up to the standard

“Carr is basically suggesting that they shouldn't be getting taxpayer money because they're not really living up to the idea of what public broadcasting is supposed to be,” Graham said.

Both NPR and PBS deny the charges, but Graham expects Carr to find some irregularities.

“The reality has always been that public broadcasting is the worst kind of public-private partnership. It takes money from everyone and everywhere and everything and is accountable to no one.”

Graham says they could lose federal funding. In any case, this is a shot across the bow – there's a new sheriff in town.

“This is Trump's appointee to the FCC, who's there to be a disrupter, to disrupt the deep state. Guess what the deep state is, in part? It's public broadcasting.