Ofcom has found three community radio stations in breach of their licences for bringing in too much money.
Each community radio station has its own limit set out by Ofcom, but most of them operate under the 50% rule where they must match their commercial revenue with non-output related funding such as grants and donations.
Nevis Community Radio reported in 2014, 98% of its income was derived from on-air advertising and sponsorship. But after questions by Ofcom, the station re-submitted its Financial Report saying it had under-estimated the amount of ‘in kind’ income from volunteers in its report.
Peace Full Media in Manchester said its 65% commercial income was as a result of an oversight “caused by internal issues which have now been sorted.
And Bishop FM in Bishop Auckland reported that 60% was commercial due to a misallocation of commercial production revenues but quickly changed it to 54% – but was still in breach.