Public television stations, rocked recently by reports that a Boston outlet was trading its mailing list to the Democratic National Committee, have been ordered by the Corporation for Public Broadcasting (CPB) to stop the practice immediately.
The CPB acted amid reports that Rep. W.J. “Billy” Tauzin (R-LA) is developing legislation that would prohibit or limit the list trading activities of public broadcast stations and other nonprofit groups.
Another worry for the CPB is that the Republican Congress is now considering whether it will authorize system funding through 2003. Total funding for public television stations is expected to be $250 million this year.
The flap began in May when news organizations reported that Boston public television station WGBH had exchanged names with the Demo-cratic National Committee.
WGBH admitted that an employee mistakenly had given a few thousand names to the committee in exchange for an equal number, but committee officials later told the Boston Globe that more than 32,000 names had changed hands since 1993. Public television stations WNET in New York and WETA in Washington, DC also reportedly acknowledged that they shared donor lists with political groups.
The practice was denounced by Tauzin and other Republicans in Congress.
“It implies a cozy relationship of the recipient of public funds with the funding organization,” said Ken Johnson, a Tauzin spokesman, in an interview with DIRECT. “It’s immoral, it’s unethical and it’s a stain on the American political process. We intend to stamp it out.”
Allegedly Violates IRS Regs
Johnson also said the practice is in violation of Internal Revenue Service regulations prohibiting a nonprofit from favoring one political party – the station allegedly did not solicit an exchange with Republicans. He added, “If public television stations think they can skirt federal law by going through list brokers, they have another thing coming.”
The tough talk has rattled already beleaguered nonprofit groups.
“With Congress spending more time looking into the business of direct mail, including direct mail fundraising, telemarketing, Internet marketing and privacy, it’s inevitable that some form of legislation will be introduced seeking to limit the nonprofit community’s list activities,” says Neal Denton, director of the Alliance of Nonprofit Mailers.
The Direct Marketing Association agrees, although it defends the rental, sale and trading of lists by nonprofit groups, including public broadcasting outlets, for the purpose of contacting possible contributors.
“It’s a legitimate practice,” said Richard A. Barton, the DMA’s senior vice president for congressional affairs. “The DMA is concerned about the possibility of a total legislative ban on the ability of nonprofit organizations to exchange, rent or sell their lists.”
The CPB said its new guidelines were designed to protect the privacy of public radio and TV donors and subscribers while guaranteeing that “no membership lists will be exchanged or rented to political campaigns or committees.”
Public broadcasting stations are prohibited from selling, renting, leasing, loaning, trading, donating or exchanging their membership or donor lists with any “candidate for public office, committees or organizations that solicit funds for use in political campaigns.”
The stations are required to maintain active control over their membership and donor lists, including the sale and rental of those lists. They also are obliged to protect the privacy of individuals and organizations requesting it by offering an opt-out provision. Failure to follow the guidelines could affect future funding for public broadcasting.
WGBH said in a statement that it has a formal policy “prohibiting us from leasing or exchanging names to any political organization.” The station added that an auditor is “carefully reviewing our history of list exchange and/or lease.”
“This is a disappointment,” said CPB spokeswoman Jeannie Bunton. “We’ve worked very hard over these past several years to demonstrate our commitment to public service.”
Network
