Christian Radio: Ministry or a Profit-Machine?

12 minread time | August 28, 2024read time |

In today’s newsletter:

There you are, driving down the road, listening to the Christian music station on your way to work, when all of a sudden the hosts are on, interrupting the music:

“We need your help! This radio station is a listener-supported, not-for-profit ministry, dedicated to bringing glory to God and the love of Jesus to millions of people around the world, every day. People come to know Jesus because of this channel, guys. It’s really changing lives. And we need some everyday heroes to step up and help us keep doing this important work. Listen to this testimonial…”

And then we hear someone talk about how their life has changed, usually because of listening to this radio station, or sometimes even just a story about how coming to faith has impacted them. When the testimonial is over, it’s back to the hosts:

“We need 30 more heroes, guys, just 30 more pledges of $50 a month or more. Can you be one of those 30 people? We need your help to keep on the air and keep spreading hope and life on the airways, day in and day out. Just 30 more people.”

Depending on the radio station, they’ll wait to play more music until they get those 30 monthly supporters. Later, there will be another 50 monthly supporters. Then another 25 monthly supporters. Either someone keeps miscounting, or these numbers of “needed” new monthly supporters are random. During one of the year’s multiple fundraising seasons, it can feel like you’re not supporting Christian music, but radio station fundraising.

And that’s the concern some Christians increasingly have with the business model. Are the high-pressure sales tactics and frequent fundraising drives all a necessary part of providing positive, life-giving music to the world? Or is it something more cynical, or at least profit-motivated?

The line between “non-profit” and “for-profit” seems increasingly blurred these days.

Recently, some large, Christian media conglomerates have come under fire for raking in exorbitant sums of money while giving the impression that they are struggling to get by. That money, in many cases, is then used not simply to pay the bills, but to buy up smaller, independent radio stations and T.V. channels, and to pay a lot of money to the executives.

For example, you may read this job description of a recent career posting by EMF, and be left a little cynical.

The defenders of this business model, however, will say that radio is a medium in slow, steady decline, and consolidation is inevitable at this stage of an industry’s life cycle. Maybe it’s better that stations are being purchased with Christian dollars instead of a PE firm that might use those stations for something less family-friendly?

Regardless of which interpretation appeals to you, we’ll have to start with the numbers and specific players.

Take K-Love, for example, which, along with Air1, is owned by Educational Media Foundation. Despite an infamous spot, in which on-air personalities allegedly praised a local woman who gave to the K-Love pledge drive rather than pay her bills (before asking the listeners to dig deep and also give), K-Love is not on the brink of bankruptcy. The listener-supported radio conglomerate pulled in nearly a quarter of a billion dollars in revenue in 2022, the last year for which their Form 990 is available. Notwithstanding some eyebrow-raising expenditures, the Educational Media Foundation walked away with $72 million in revenue over expenses.

Sounds like a very profitable non-profit.

So why the high-pressure fundraising tactics, which many accuse of being constant, manipulative, and borderline prosperity-gospel? Why do they “encourage listeners who can barely pay bills to donate instead”?

It seems to be funding acquisitions and donor-base expansion, as EMF now owns over 1,000 radio signals (with over 800 stations), buying more and more local stations out each year. Additionally, there are 14 individuals listed on form 990 as making salaries well into the six figures, with CEO Jon Reeves making over $600k. This is still better than a few years ago when then-CEO Michael Novak made a salary of $1.2 million. The organization lists $1 billion in assets and is rich in investments, reserves, and property.

“We are thrilled to add these stations to the K-LOVE network and for the opportunity to continue to bring people closer to Jesus,” said EMF’s Alan Mason, of an acquisition in 2019. But is that what K-LOVE and others are doing? Certainly, there are plenty of people who have turned on the Christian music station and found encouragement in the message of the songs – but in 2024, do we really need a massive media conglomerate to use listener funds to broadcast music that is easily accessible (and free) to everyone with an internet connection?

“Why don’t they just sell ads?” one Sent to Win reader in Georgia asked when interviewed about his issue.

It’s a valid question. Radio has declined from something nearly 95% of adults tuned into at least weekly in 1998 to 82% in 2022.

Radio-infographic

It’s a steep decline, especially within younger demographics, but there is still a large enough audience to gain some serious advertising dollars. Supposedly, the typical Christian radio model is listener-supported and therefore superior to other stations that constantly interrupt the music… But the music is constantly interrupted on Christian radio, as well, with “non-ad ads.” Clips from celebrity preachers raising their public profile, fundraising drives, and event promotion still feel like ads- and are sold as such to local churches, business owners, and concert promoters. These spots are sold in a sort of backdoor ad-buy/promotion package- ie, give us a “donation” of a certain amount, and “as a thank you,” we’ll mention your event, organization, business, etc. a certain number of times. This somewhat shady workaround of the non-profit rules is the perfect loophole for these stations to have their donation cake and eat it too, sprinkled with “non-ad ad buys” on top. As long as the ad doesn’t have a direct call to action for the sponsor, it’s technically legal.

EMF brought in nearly $240 million in donations in 2022, but with over 800 stations and 1,000 signals, suddenly that number looks less impressive. The average radio station brings in $2 million in ad sales per year. Radio isn’t for every product category, but if you are targeting a certain age demographic in a particular area, it can be very cost-effective (with a comparatively low CPM), produce actual sales, and businesses are still buying air time. Theoretically, EMF could openly sell ads like the other stations, make 10 times as much money, and let the woman who can’t pay her bills… pay her bills.

“It may be that your local church or food pantry needs that money more than this mega-station,” said Warren Throckmorton, back in 2016.

K-LOVE recently moved from Rocklin, CA, to a new 170,000-square-foot headquarters at Berry Farms in Nashville, TN. It has the heroes who give monthly to thank for their impressive new location, but it’s worth considering that a different business model might have funded that relocation better – and without any sticky moral quandaries. I doubt that critics of EMF’s executive compensation would complain if the money came from good old-fashioned ad sales.

But Educational Media Foundation’s K-LOVE and Air1 are hardly the only ministries raising donor funds via media, saying or heavily implying that giving to them is giving to God (and saving them from going off the air). Trinity Broadcasting, for one, pays its top executives more than EMF does. Inspiration Ministries and Inspiration Network pays its CEO $4.5 million (and its general counsel $2.5 million) while soliciting donations from its far less financially secure audience members.

John MacArthur compared some of these Christian media executives to infamous grifter Johann Tetzel, (who sold indulgences leading up to the Protestant Reformation), as he lambasted the high-pressure fundraising tactics and cupidity. Of course, John MacArthur, a full-time minister, is himself personally worth an estimated $15 million, owning three luxury houses.

Maybe the ancient Christians were onto something with that “vow of poverty.”

But in all seriousness, Christians and businesspeople of conscience need to consider what a profound thing it is to ask for donations in the name of doing God’s work. Nearly half of all Americans can’t get their hands on a thousand dollars in an emergency. Money given by the general population is usually given at personal cost, so it should be spent with great care, or perhaps just gathered in a different manner entirely.

Jesus condemned the religious leaders of his day for “devouring widow’s houses” under the pretense of soliciting money for God. Maybe the average listener’s $40/month would be better used to help the single mom next door with her grocery bill. The radio stations will probably be alright. If not, you’ll hear about it the next time the music stops.
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INDUSTRY INSIGHTS

Trade War, Market Watch, and Evangelicals for Harris Gains Traction

Trade War

Trade War

China’s economic woes are, at this point, well-known: massive debt, real estate falling through the floor, low consumer confidence, deflation, and a bad demographic trajectory, just to name a few. To try and jumpstart the economy, China has gone all-in on flooding the world with cheap consumer goods and materials, driving key businesses out in many nations around the world. In response, many western countries are fighting back with tariffs and import bans. China then responds more aggressively via loopholes and increased production, and tariffs are raised around the world. It’s a vicious cycle, and possibly the start of a global trade war, as China doubles down on manufacturing and massive exports instead of heeding calls to rethink its economic strategy. Increasing trade tensions raise questions about the future and viability of the U.S.-China commercial relationship.

Market Watch

Market Watch

The Dow Jones Industrial Average has hit a record high this week, amid renewed expectations of Fed rate cuts. The inflation report from July had some good news and some not so good news. Rent is up 5%, auto insurance is up 18%, and though the rate of increase has slowed, groceries and energy are still increasing year over year. If you need to buy a car, however, that is getting easier. New cars are down 2%, and used cars have dropped 10%. The price of gold continues to set records, as it is now well over $2,500/oz, and a single gold bar is now worth well over $1 million. 30-year fixed mortgage rates continue to cool down, now sitting at about 6.46%, as opposed to 7.23% a year ago, and if the “housing is a bubble” crowd is correct, prices will be falling soon as well.

Evangelicals for Harris Gains Traction

Evangelicals for Harris Gains Traction

In many Christian circles, the phrase “Evangelicals for Harris” contains an oxymoron, as many in the typically conservative-leaning Christian sect consider it impossible for a faithful Christian to support the Democrat agenda in 2024, which contains unbiblical advocacy for abortion, radical gender theory, etc. At the same time, a growing number of voices on the center-right and left are saying that Christians cannot support Donald Trump, especially as he appears to have moved left on abortion. This new group, “Evangelicals for Harris” may end up playing a decisive role in the election, however, as the nearly 200,000 person alliance makes waves in the news cycle. Obama was able to peel off 26% of the typically Republican evangelical vote in 2008, and he won big. Biden, likewise, won 24% of the evangelical vote when he won in 2020, while Hillary Clinton won only 16% when she lost in 2016. Harris is aiming to take 20% or more of the evangelical vote in 2024, and whether or not she is successful will have tremendous consequences for businesses, as the two parties are putting forward very different economic agendas for the future.

Sunday School

Sunday School

Q. Who are the Zadokim, Zadokites, or the sons of Zadok?

A. The line of Levite priests who faithfully stewarded the temple in the OT, but who later became corrupt after the Maccabean Revolt. In the New Testament, they appear as the Sadducees.

TIPS & TRICKS

Meet Chandler Hallow – Mr. Beast’s Soft-Spoken, Boldly Christian Friend

Influence in media has shifted drastically over the past several years. A top-rated show on Fox or CNN is happy to garner 2-3 million viewers during primetime, while a typical Mr. Beast video on YouTube gets 150 – 250 million views.

New media is media, and there is a lot of money being made, influence being gained, and fame being chased. But one celebrity in new media is swimming in the opposite direction, and is seems to be because of a spiritual awakening. That someone is Chandler Hallow.

“When I went away to college,” Chandler says, in a recent video where he shares his testimony, “I started to stray away from God. You know – doing things I had never done before, like getting into drugs, smoking, drinking, partying…” This went on for some time until he was living on his own after school, still into drugs, feeling very lonely and lost, and yet praying every night to thank God and ask Him to do something in his life. Then one day, smoking in his kitchen and feeling like there was a “cloud of depression” in his house, he says God spoke to him.

“It was one million percent God’s voice,” he says. “He goes, ‘What are you doing?’ and I froze… At that moment, I like snapped out of some trance I was in, and it’s like God just peeled the scales off my eyes.”

Chandler immediately went through his things, and threw away two garbage bags of “stuff,” that he now knew was an impediment to living for God.

“From that moment on, I started to actually develop a relationship with Jesus, and it changed my life.”

Though he is known for being a fan favorite on Mr. Beast’s 300-million-subscriber YouTube channel, has seemingly been distancing himself from the spotlight of late, leading many online to wonder if he was planning on leaving the channel entirely. Instead of enthusiastically participating in the gameshow-like challenges on the videos that made him a household name among the younger generations, he has elected to start reading scriptures on TikTok, doing short, daily devotionals as he encourages his viewers to treat others with kindness, to resist temptation, and to pray.

“The joy of the Lord is my strength,” he says, smiling as he quotes the scripture in one of his daily devotionals. “When I read I get joy, because of all that God’s done for me, and it brings me strength. It’s like almost everything else that I was dealing with is gone.” He concludes by encouraging his viewers to read the Bible and quote scripture over their lives.

Chandler came from humble beginnings, as he was originally employed by Jimmy Donaldson, AKA Mr. Beast, not as onscreen talent but as a janitor to clean up after their wild video shoots. One day, Mr. Beast needed another person for a video, and he enlisted Chandler to hop in. People liked him so much, that Mr. Beast kept bringing him back until he was a regular. But he isn’t chained to the fame, it seems, and he’s not afraid of giving up the influence for Christ’s sake.

Ironically, this step back may have made him more popular, but we will see what God does in his public life as Chandler takes a new course and seeks to follow God instead of all the other things we think will bring us fulfillment.

This world just might need a few more Chandlers in it, to show us what we can let go of, how God can turn a life around, and what’s really worth pursuing.

 

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