The 88-92 Mhz portion of the FM band is reserved for Non-Commercial operations. In addition, the FCC licenses Low Power stations (LPFM) in the entire FM Band
http://transition.fcc.gov/lpfm/
“LPFM stations are available to noncommercial educational entities and public safety and transportation organizations, but are not available to individuals or for commercial operations.”
FCC rules about FM non-commercial stations
“Noncommercial educational FM broadcast stations are subject to the provisions of §73.1212 to the extent they are applicable to the broadcast of programs produced by, or at the expense of, or furnished by others. No promotional announcement on behalf of for profit entities shall be broadcast at any time in exchange for the receipt, in whole or in part, of consideration to the licensee, its principals, or employees. However, acknowledgements of contributions can be made. The scheduling of any announcements and acknowledgements may not interrupt regular programming.”
It’s not enough that your qualify for IRS treatment as a non-profit entity. You MAY NOT accept money from a for profit entity to sell them a commercial. “Acknowledgement of contributions” is a somewhat slippery slope, which you know if you listen to Public Radio stations. The general dividing line is an acknowledgement should not contain a “Call To Action” to do something. It’s okay to say where the business is located or the web site address, it is not okay to list products for sale or use phrases like “Stop by and look at our specials” or “Hurry on down before the sale ends on Friday”.
What is permitted in an underwriting announcement is explained in detail here:
http://transition.fcc.gov/mb/audio/nature.html
This LFPM clearly understands the rules.
http://www.radio957.org/services.html
Before I point this out, I believe LPFM stations should be allowed to run commercials if they are in the commerical FM band. Forcing them to be non-commercial is the way that the NAB has its puppets (the FCC and Congress) keep out new competitors.
Here is an interesting document about a complaint that Saga (a for-profit Radio company listed on the American Stock Exchange) made about the “unfair” comptition of an LPFM station
http://fjallfoss.fcc.gov/edocs_public/attachmatch/DA-05-2897A1.pdf
While the FCC found that the LFPM station did air commericals, the only thing it did as “Admonish” the LPFM and told Saga to get the hell out of the room.
LPFM is going to be a big topic this year. The FCC is getting two new commissioners appointed by President Obama… the Hindu lawyer Ajit Pai
http://www.daijiworld.com/news/news_disp.asp?n_id=120933
and Democrat appointee Jessica Rosenworcel (currently a lawyer working on the staff of Senator Jay Rockefeller)… [Where have I heard the name Rockeferller related to the radio business… I’m sure It’s just a coincidence that RCA was the first tenant in Rockefeller Center]
Finalizing the rules for the LPFM “open window” for receiving applications is overdue. The competition between LPFM and commercial stations wanting FM Translators for AM stations is part of the reason for the delay. Even so, once that window opens, there will likely be 1000s of applications for new stations.