How Are Local Radio Stations Funded?

The funds that help radio stations to sustain are collected from different public sources like individual donations, foundations, corporations, from the federal grants and state government. All the funds from the above mentioned agencies are collected by CPB which is the Corporation for Public Broadcasting. CPB is also responsible for receiving contributions from listeners and corporate support. The CPB collects reserves and allocates funds to public radio stations.

However, only 10 per cent of the total funding comes from the government grants. Radio stations are growing financially with the two main sources of revenue which are support from listeners and underwriting. Some of the listeners also undertake a community based fundraising.