We'd like to provide clarity and accurate information in the wake of misleading communications and actions by the “CapRadio Endowment” (Endowment) Board of Directors. We want you to know that despite their recent misguided effort to dictate the future of our station, CapRadio will remain an auxiliary of Sacramento State and will continue serving our community as an independent public broadcasting entity.
The Endowment is a 501(c)(3) organization completely separate from CapRadio and Sac State. It has no authority over CapRadio. Over the past few weeks its board has overstepped in concerning ways, from attempting to publicly force an ill-planned merger with PBS KVIE, to announcing a “donation” of assets that directly contradicts the Endowment’s stated mission to financially support CapRadio.
The Endowment board’s motivation for these actions is unclear, but it is certainly not in the best interest of CapRadio and the community at large as it claims. It is also shocking and disappointing that KVIE — part of this community’s public media family — has worked with the Endowment to the detriment of local public radio.
The bottom line: CapRadio remains committed to delivering essential services that create more informed, involved and educated communities. Sacramento State supports CapRadio in this commitment.
Additional details are provided below for those who seek a deeper understanding of this issue. We will update you as things progress.
As always, we greatly appreciate your support as listeners, members and friends.
Thank you,
CapRadio Management
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Background
The California State University audit released on Sept. 27, 2023, identified serious issues related to CapRadio’s record keeping, management oversight, and accounting processes and procedures. One finding was that CapRadio is not authorized to direct donations to the Endowment and that doing so is out of compliance with CSU guidelines.
CSU recommended that the Endowment be integrated into the University Foundation at Sacramento State (UFSS) to ensure proper authorization and adequate administration of funds, while continuing the Endowment’s fiduciary responsibility to CapRadio. Representatives of Sac State, CapRadio and the Endowment board met to discuss such a move, but the Endowment board rejected it.
CapRadio - Endowment Relationship
Before changes made in accordance with CSU audit findings, CapRadio provided an estimated $130,000 a year worth of staff administration and fundraising support. CapRadio has also provided the Endowment with approximately $50,000 a year worth of on-air promotion to solicit donations meant to support CapRadio. Over 20 years, CapRadio has raised more than $1.3 million that has gone to the Endowment and was meant to support CapRadio.
The Endowment has about $2 million in restricted use funds based on its latest audited financials.
CapRadio and Sacramento State
President Luke Wood and Sacramento State have been instrumental in stabilizing CapRadio finances and management since the CSU audit revealed deficiencies in both. The support given to our organization and staff has resulted in major improvements to audience service as well as strong member support.
Also since the audit, CapRadio has significantly expanded local news coverage and broadcasts and added more local arts and culture coverage.
In February 2024, our news station had its largest weekly listening audience in the last nine months, and our music station had the largest weekly listening audience in the last 12 months. We have also seen an outpouring of support from the community, helping us achieve an unprecedented number of donations over the past year. CapRadio members now account for 70% of our annual funding.
KVIE Merger Situation
Tom Karlo, CapRadio’s former interim general manager, and Frank Maranzino, CapRadio’s current interim general manager, had exploratory discussions with David Lowe, KVIE’s general manager, and the Endowment board about a collaboration between the organizations.
After consideration, CapRadio determined that a merger did not make sense at this time, and communicated this very clearly to both KVIE and the Endowment board. Sacramento State fully supported CapRadio’s decision and chose not to engage the Endowment board when they tried to speak with the University directly.
On March 19, members of the Endowment board hired a PR firm to publicly pressure Sacramento State into selling the single license for 90.9 KXJZ to KVIE. CapRadio operates 32 fully licensed FM stations that reach from Modesto to Eureka, and serves nearly 500,000 people each week. CapRadio has not seen a legitimate plan for a proposed merger.
On March 28, the CapRadio board voted to provide a 90-day notice to terminate an operating agreement with the Endowment to comply with CSU recommendations. This does not preclude us from developing a new agreement with the Endowment that complies with CSU guidelines. On April 1, CapRadio and Sacramento State were notified that the Endowment had transferred the land that holds the 90.9 KXJZ tower to KVIE, and that KVIE chose to accept it.
Summary
CapRadio’s top priority is to fulfill our public service mission and continue serving our community. We will update you as things progress. We greatly appreciate your support as listeners and members as we navigate the most difficult period in our more than 40-year history.
Thank you all.
