1. The non-profit board of directors

Like a business, a community radio station is a corporation. This is a legal entity that pays taxes, can hire staff, buy property and take out loans. While members may come and go, the corporation's identity persists. 

Unlike most businesses, however, community radio stations are non-profit corporations. These are created for a specific non-monetary social benefit, whether that's alleviating poverty or getting together to talk about model trains. And while a non-profit can conduct many of the financial negotiations of a business it cannot earn a profit.   

Contrary to popular opinion, non-profit organizations can make money. In fact, there are some very wealthy non-profits in Canada. Unlike a business, however, they cannot pay dividends to their members. All the money stays in the organization.

Non-profits versus charities

A non-profit (also referred to as a not-for-profit) organization should not be confused with a charity. Although both are governed by many of the same laws and regulations, charities have special status with the Canada Revenue Agency (CRA). They are exempt from most income tax and may offer tax receipts to donors. On the other hand, directors of a charity have greater legal obligations than those of a non-profit. 

Currently, only very few activities qualify for charitable status, and community radio is not among them. A handful of stations were granted charitable status in the 1980s, which they still hold today, but no new stations qualify.

Registering a non-profit

Non-profit organizations must register with either the federal or a provincial government. Organizations that operate across provincial boundaries will usually register with the federal Corporations Canada. Most community radio stations, however, are registered at the provincial level, with one of the following agencies. 

• Newfoundland
• Nova Scotia
• Prince Edward Island
• New Brunswick
• Quebec
• Ontario
• Manitoba
• Saskatchewan
• Alberta
• British Colombia
• Yukon
• Northwest Territories
• Nunavut

In its filing, a non-profit must register the organization's name, the names of its board members, its objects, or purposes for existing, and its bylaws. 

Accountabililty

The board of directors is the legal representative of the organization. It is elected by the organization's members, and is required to act in their interests. If a staff member acts against the interests of the organization -- through negligence, for example -- the staff member may be fired. If a board member does so, they could be sued!

The board is accountable to the organization's members, just as staff -- if a station has staff -- are accountable to the board. Reports, annual general meetings, hiring and firing of the station manager, and board elections maintain this circle of accountability. The following video illustrates this circle. Keep in mind that if a station has no staff, the circle is somewhat tighter!

Corporations Canada offers a good overview of activities of the board and the responsibilities of the board's director. It is written for federally-registered non-profits but most of the information applies.

The NCRA provides members a handbook for community and campus radio station boards. You should familiarize yourself with this as you take this course.

The Director

Corporations Canada

A breakdown of the role of the director on a non-profit board: their qualifications, how they are chosen, their roles, responsibilities and liabilities. More general governance matters are also covered, such as how a non-profit is formed and creates its bylaws. 

The Board of Directors Handbook

NCRA

An introduction to sitting on the Board of Directors of a community or campus radio station. Topics covered include general non-profit governance such as fiduciary duties and those related specifically to radio, including regulations, compliance and media funding. 

Boards often work out of the limelight. While staff handle the publicly visible activities like promotion, events and even hosting shows, the board of directors will often concentrate on more intangible factors, such as ensuring the stability of the organization, or the less glamorous tasks, like balancing the books. However in the larger community, including regulators and potential donors, boards are the public face of the organization. A well-run board presents the face of a well-run organization, one worth supporting. As one governance expert points out: "Potential donors are watching." 

If that sounds daunting, don't be deterred says Brandon Logan. For six years a board member and now staff at Local FM in Saint John, New Brunswick, Logan says there will always be more experienced members to help you along.

Tight Budgets, Old Hands

Brandon Logan