Trade Agreements Policy

Revised April 2007

BACKGROUND:

WPR Corporate Development secures funding to offset the cost of program acquisition and broadcast, program production, special events and other routine and project specific expenses. Unless designated to a specific project or purpose, corporate underwriting is, in general, considered “undesignated” and may be used toward a variety of expenses across the budget.

WPR supplements its resource base by soliciting “trade” (sometimes referred to as “in-kind”) resources that may be substituted for budgeted expenditures or which may enhance projects or departmental resource budgets. Because trades may occasionally extend WPR’s purchasing power by acquiring additional resources, trade underwriting constitutes the equivalent of both revenue and expense. Trades may also represent budget authority for the department that benefits from the agreement. Because trades may extend WPR’s purchasing power, staff has greater responsibility in the acquisition and monitoring of trade agreements beyond the routine oversight of cash agreements.

POLICY:

1. All trade agreements between Wisconsin Public Radio and a business or organization (profit or non-profit) must have approval in advance from the WPM Associate Director via a trade request form, available electronically. This includes not only corporate sponsorship announcements, but anything WPR might offer in return for items or services received. The WPM Associate Director will evaluate the acquisition of specific resources, the value of those resources compared to the staff resources required to secure them and the relative commitment of recognition WPR would provide the donor. Trade underwriting agreements are accepted when they benefit WPR and its departments for planned activities and/or when they add valued but unbudgeted resources. No trade support may be solicited by any department for its own resources without the express written permission of the WPM Associate Director.
2. The dollar amount of the trade agreement must be equal to the services or goods received. WPR will not air announcements for services that are priced above fair market value.
3. Procedure:
   1. A signed trade request form will be submitted by the staff member making the request to the WPM Associate Director for approval.
   2. The WPM Associate Director will return the approved or denied request form to the staff member making the request and to the Director of Corporate Development.
   3. The Director of Corporate Development will assign a corporate development representative when required.
   4. After successful discussions with the business or organization, the corporate development representative will furnish a signed copy of the request form to the Traffic department along with the completed underwriting contract. The dollar amount of the contract must reasonably match the dollar amount or estimate approved on the trade request form.
4. The traffic department will track all trades, and provide the business or organization with a monthly invoice showing proof of performance and the dollar amount used. Both the traffic department and the Director of Finance will track the balances of open trade accounts.
5. Madison only: Unless approved, trade contracts must run on WHA.
6. Trade clients must be made aware that their announcements may be bumped to another time within the flight dates of their contract, or moved to statewide avails. Trade announcements will be provided on a best-time-available schedule (unless otherwise approved) and at current rates. No bonuses or discounts will be given.
7. Use of “open” trade accounts such as lodging, print, food, etc., must have the approval of the WPM Associate Director, or the Director of Finance if the director is not available, in the form of an e-mail. Anyone requesting use of open trade accounts must check with Traffic prior to use of the open trade to be sure sufficient trade value is available, i.e. print balances, lodging, etc.