Where Does $100 to NPR Go (2023)?

NPR (National Public Radio) – the radio station that people love to love – is a non-profit, tax-exempt 501 (c) (3) organization that works with its member stations to foster a more informed public by providing a deeper understanding of events, ideas, and cultures.

Based in Washington, DC, NPR is also noteworthy for its on air fundraising although most people would be surprised to learn that public support in the form of contributions, gifts, and grants is not the number one source of revenue. Instead, program service revenue (station programming fees, digital media sponsorships, membership dues from member stations, distribution, and digital services) is the primary source of revenue for NPR followed by contributions, gifts, and grants.

So, if you gave $100 to NPR, how was it spent?

• $65 went to pay employees,
• $16 went to buy content and pay representation fees;
• $20 was used for office expenses, fees for services by non-employees, advertising and promotion, interest and other expenses; and
• $1 was used for grants.

It is important to note NPR open $102 for every $100 in revenue in 2023 with the shortfall covered by savings.

Key information to know about NPR include:

1. NPR is headquartered in Washington, DC.
2. NPR consists of 4 tax-exempt non profit organizations:  National Public Radio, Inc (NPR), NPR Foundation, American Coalition for Public Radio, NPR International Operations Inc), 2 organizations taxable as a partnership (National Public Media LLC, Podcast Media LLC) and 1 organization taxable as a corporation (NPR Asset Holding Company).
3. Of the 28 directors listed on the Form 990 (2022 for the year ending September 30, 2023), 16 are male while 12 are female.
4. NPR has 1,508 employees (120 more than in 2022); 715 (47%) received more than $100,000 in compensation in 2022.
5. NPR raised $302 million in 2023; $4 million less than in 2022.   $197 million (65%) came from program service revenue while $99 million (33%) came from contributions, gifts, and grants.
6. NPR also has a foundation called the NPR Foundation, a separate non-profit, tax-exempt 501 (c) (3) that raised $21 million in 2023 and gave NPR $32 million which they were able to do because the foundation has nearly $400 million in net assets. The foundation operates out of the same address as NPR.
7. In 2017-2018, NPR has spent less than the organization raised which is in contrast to previous years when the organization consistently spent more than they raised resulting in the net fund balance decreasing from a high of $175 million in 2012 to a low of $124 million in 2016 before reversing course. By 2021, net assets were up to $151 million.  In 2022, NPR spent $1 million more than the organization received and reported $9 million in unrealized losses on investments causing net assets to decrease to $141 million. In 2023, net assets dropped to $133 million because the organization spent more than they raised (which was partially offset by $5 million in unrealized gains on investments).
8. NPR has total assets of $400 million, concentrated in real estate  ($193 million) -mostly land and buildings – and cash and securities ($129 million). Liabilities total $244 million, most of which are secured mortgages and notes payable ($181 million).
9. At year-end (September 30, 2023) NPR had $133 million in net assets (note:  the NPR Foundation has about $380 million of net assets).
10. NPR also provides news and information services outside of the US – primarily in East Asia and the Pacific and the Middle East and North Africa.
11. NPR did not pay for first class or charter travel, companion travel, personal services, health of social club dues or initiation fees, a residence for personal use or housing allowance, or discretionary spending accounts.  NPR did make gross up payments or provide tax indemnification.

In 2023, NPR reported total expenses of $308 million (not including $8 million in depreciation).  These expenses were categorized as follows:

• $194 million (65% of revenue):  Compensation
• $ 33  million (11% of revenue):  Content Acquisition
• $ 28  million (9% of revenue):  Office-Related Expenses
• $ 16  million (5% of revenue):  Representation Fees
• $ 15  million (5% of revenue):  Fees for Services (primarily other, no detail provided)
• $  3  million (1% of revenue):  Other Expenses (primarily other with no detail provided, lease and fees)
• $  6  million (2% of revenue):  Interest
• $  6 million (2% of revenue):  Travel and Conferences
• $  4 million (1% of revenue):  Advertising and Promotion
• $  3 million (1% of revenue):  Grants

As illustrated above, the largest expense for NPR is compensation for the 1,508 employees who received $194 million. The average compensation was $129,000. However, only 715 employees (48%) received more than $100,000 in compensation. The most highly compensated employee was John Lansing, the President and CEO who received $590,252.

Using the above information, every $100 in revenue was spent as follows:

$100:  Revenue

-$ 65:  Compensation

-$  9:  Office-Related Expenses

-$ 11:  Content Acquisition

-$  5:  Representation Fees

-$  5:  Fees for Services

-$  2:  Travel and Conferences

-$  1: Advertising and Promotion

-$  2:  Interest

-$  1:  Grants

-$  1:  Other Expenses

-$102: Total Expenses

As illustrated above, by far the largest expense for NPR is compensation for the 1,508 employees.  $65 out of every $100 in revenue was spent on compensating employees.  Office expenses, fees for services, travel and conferences, advertising and promotion, interest and other expenses use up $20 more.  Content acquisition and representation fees use up $16 of every $100.  Grants used $1 out of every $100.

To read the IRS Form 990 (2022 for the year ending September 30, 2023) for NPR, click here.

To read the IRS Form 990 (2022 for the year ending September 30, 2023) for the NPR Foundation, click here.