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EGM FAQs
Extreme
Grace Media and The Spirit
Frequently
Asked Questions
(and
frequently thought questions you were afraid to ask)
History
of Extreme Grace Media
Financially
related questions
General
questions
HISTORY
Q100.
Who or what is Extreme Grace Media?
A.
Extreme Grace
Media (EGM) is a local non-profit or not-for-profit corporation,
incorporated in Iowa January 2008. It is also a 501 (c)(3)
organization as designated by the IRS. It was formed with the
sole purpose of keeping CHR Christian radio in Easters Iowa.
Q101.
What is the difference between a for-profit and a not-for-profit
organization?
A.
In simplified
terms, the difference is the purpose or mission of the organization. A
for-profit has owners whose purpose is to realize net-profits for its
owners. A not-for-profit is not owned by anyone. It
has a
Board of Directors who are entrusted with managing the non-profit to
fulfill its mission to meet a socially desirable need of the community
or its members.
Q102.
Is EGM managed by a Board of Directors and no one owns it?
A.
Yes.
Q103.
Who are the Board of Directors entrusted with managing EGM to fulfill
its mission?
A.
chris behmlander, Regina behmlander and Karen Goldberger
Q104.
What is the mission of EGM?
A.
The mission
of The Spirit - KXGM (Extreme Grace Media Inc.) is to bring the good
news of the Gospel of Jesus Christ through contemporary Christian music
and brief edifying segments via radio and the Internet while displaying
the highest professional standards.
Q105.
Does EGM own The Spirit?
A.
EGM owns the FCC licenses and other necessary facilities to operate the
radio station known as The Spirit.
Q106.
How long has EGM controlled and operated The Spirit?
A.
The process
to purchase The Spirit from Friendship Communications, another
not-for-profit organization, began in January 2008 and was finalized
July 18, 2008.
Q107.
Why did EGM purchase The Spirit?
A.
The financial
situation of The Spirit in 2008 was such that it would have been sold
at auction if an agreement could not have been arranged by January 18,
2008. Knowing the situation and after much prayer and seeking
God’s guidance, EGM was formed for the purpose of keeping The
Spirit from going off the air in Eastern Iowa.
Q108.
What is KXGM?
A.
KXGM are the
call letters of the station known as The Spirit. All radio
stations have call letters assigned by the FCC. The
K is
because the station is west of the Mississippi. The XGM is
for
God's eXtreme
Grace
and Mercy.
FINANCIAL
Q200.
What does the 501 (c)(3) designation by the IRS mean?
A.
That means all donations to EGM/The Spirit are tax deductible as
charitable donations up to the extent allowed by law.
Q201.
Where does EGM/The Spirit get its funding?
A.
Currently approximately 70% comes from listener donations and 30% from
our Vision Partner donations.
Q202.
To what extent have listeners supported The Spirit in prior years.
A.
Please see graph below.
Amounts from 2005, 2006 and 2007 were from previous non-profit
organization's records.
The amounts for 2008 are actuals from Mar to Dec, the portion of the
year EGM operated The Spirit.
The amounts for 2010 are through August 15.
Q203. What are Vision
Partners?
A: Vision Partners are businesses, churches, and other
organizations that share the vision of EGM and The Spirit for reaching
youth and young adults with the Gospel through music. Vision
Partners donate to The Spirit. In return they are thanked
on-air
for being Vision Partners.
Q204.
Is EGM allowed to sell advertising or commercials to help defray the
cost of running the station?
A.
NO. The
FCC prohibits Non-Commercial/Education (NCE) radio stations from
selling advertising. KXGM-FM, The Spirit is classified as an
NCE
station as are all stations below 92
MHz Also,
non-profit organizations are highly regulated by the IRS regarding the
source of their income.
Q205.
Are the music companies and artists allowed to pay EGM for playing
their songs?
A.
NO. Pay for play, as that is known, is against the law.
This is also called payola.
Q206.
How has the cost of the expansion and the new building affected the
current financial situation?
A.
It hasn't.
No listener dollars were used for either. Both were
accomplished through interest free loans and donations for those
purposes. The loans are being deferred and partially written
off
each year at the request of the donor. The monthly expense of
buying a building compared to leasing a facility is almost expense
neutral. Lease payments go up annually and a building is
permanent.
EGM
knew the
lease at the Hiawatha facility was to expire May 2010. It was
an
extremely crowded 800 square feet of space in which to
operate.
There was no other space to lease in that area. After months
of
prayerful searching, the building in Marion was purchased. The current
building offers adequate space for the staff and also has an
opportunity for community use with a Prayer Room and a Community Room.
Q207.
Will EGM/The Spirit always be listener supported?
A.
Yes. As
stated, by law EGM cannot sell commercial time, receive funds from the
recording industry or go into any type of profit-making
business. Just like all charities or non-profits,
The
Spirit is dependent on donations to stay in operation.
Q208.
Are there fundraising options available for EGM other than
direct listener support?
A.
The
cost/benefit ratio does not always support the time and effort that
goes into such fundraising activities.
There
are venue/facility and other expenses which can be costly, and the
proceeds are not always as hoped for. They are are
extremely time consuming for such a small staff who is also busy out in
the community attending and participating in all the various parades
and events, and doing the normal business of a radio station.
Q209.
Are grants available for non-commercial radio station, like The Spirit,
and, if there are, are they hard to get?
A.
There are
organizations that could possibly provide grants to stations like The
Spirit, but it is not easy to get through the process of even being
considered for a grant. The time required from staff to do
this
is not available. Also, grants of this type are generally not
provided for normal operating expenses, but rather for special projects.
Q210.
When will EGM/The Spirit stop asking for money?
A:
Well,
most likely this will happen shortly before the second coming of
Christ. Just like most non-profit organizations, EGM is
completely supported by donations and grants, and as many people know,
the bills continue to come even if they can't be paid.
Q211. Is it true that the Board
has been an unpaid working
Board since March 2008?
A: Yes.
Q212. What positions do
the working board fill?
A: The board fills these positions:
General Manager/On-air
Business
Manager/Accountant
Engineer/Technical
Director
Q213:
If those positions were paid, what would be the aggregate annual
cost?
A: Based on
industry standards, if those positions were paid positions the annual
aggregate base salary would be between $160,000 and $170,000.
General
Q300.
What happened to AM 850, KXGM?
A.
There was not
sufficient listener support to cover the expenses to keep the AM
station on the air, and it was in serious need of upgraded equipment
and repairs.
Q301.
Why is The Spirit no longer putting on concerts?
A.
While the
intent is not to make money from concerts, The Spirit cannot afford to
lose money on concerts either. Concerts are expensive to put
on
and ticket sales have shown a lack of interest in attending the
concerts. The last concert scheduled had to be canceled
because
less than 80 tickets were sold.
Q302. Why do I hear another
station? Why can't I hear you?
Why does your signal sound weak?
A. From about May through early September, atmospheric conditions
really impact propagation of FM radio signals. Depending on
the
conditions, a signal can propagate further than normal or not very far
at all.
Before
May 2009, The Spirit (KXGM-FM 89.1 in Hiawatha) enjoyed relatively
clear airwaves to the south. In May 2009, an Iowa Public
Radio
station went on the air in Ottumwa on 89.1 (KDWI). This
station
frequently interferes with The Spirit's signal in late spring, summer
and early fall during the morning and late afternoon hours.
If
you want to get technical, The Spirit's signal is polarized
vertically and is directional to the northwest from a tower west of
Hiawatha. (That's two strikes against it to reach Cedar Rapids, Marion
and points south and east). KDWI is circularly polarized and
omni
directional, allowing it to overpower The Spirit in those problem times
of poor propagation conditions. The Spirit's signal is the
way it
is for several reasons. One of the reasons is a former TV
channel
6 in the Quad Cities.
Because the TV channel 6 station no longer exists, The Spirit has been
granted permission to change its transmitter such that it is less
directional and circularly (both vertical and horizontal components)
polarized. Calculated coverage based on propagation models
and
terrain information show a great improvement for Cedar Rapids, Marion,
and even Mount Vernon. These changes require capital to buy
and
install a new antenna and transmitter. The estimated cost is
between $50,000 and $60,000.
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