Does anyone know if a trust can hold a non-commercial FM license? A trust does not exist for profit...Can anyone cite a non-comm already owned by a trust?
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Can a trust hold a Non-Comm license?
- Thread starter mbatchelor
- Start date
mbatchelor said:
Plenty of trusts exist for profit. The blind trusts that hold investments of people in govenment to guarantee isolation are definitely out to make money for the holders. Same goes for the kinds of trusts parents set up for kids, or the charitable ones that make money from investments so they can finance their particular organizations. Even commercial stations in a trust are hopefully making money, as the idea is to eventually sell them and return money to the original owner.
It seems to me that most non-coms are held in trust...in that the Board members are called Trustees.
However, I don't think that's your question. I seem to recall a non-com being turned over to a trust when the original owner was unable to continue ownership. Isn't that what happened to WFMU East Orange NJ when the licensee, Upsala College, went bankrupt?
However, I don't think that's your question. I seem to recall a non-com being turned over to a trust when the original owner was unable to continue ownership. Isn't that what happened to WFMU East Orange NJ when the licensee, Upsala College, went bankrupt?
Just stumbled across this.
In many states the members of the governing board of a not-for-profit corporation are called "trustees." However, the entity they run is a corporation, not a trust. A not-for profit corporation is nearly identical to a for-profit corporation in operation. However, the non-profit corporation does not have shareholders, and any profits from its operation must be plowed back into the enterprise, or donated for a charitable purpose.
Now, a trust is a different animal. All kinds of assets, tangible or intangible (e.g., a patent, a broadcast license) can be placed in trust. A trust can have a definite length, or it can continue indefinitely. The trustee or trustees owe a duty to a) the individuals for whom the trust was created (as in the case of a trust for minor children, for example) or b) the charitable purposes for which the trust was established (as is the case of some of those foundations who provide funding for NPR programming).
So the simple answer is yes, a trust can own a non-commercial broadcast license. To pass FCC muster, I would suspect that the trust would need to be for an indefinite period of time, and that the trust's purpose would be to operate the non-com station.
In many states the members of the governing board of a not-for-profit corporation are called "trustees." However, the entity they run is a corporation, not a trust. A not-for profit corporation is nearly identical to a for-profit corporation in operation. However, the non-profit corporation does not have shareholders, and any profits from its operation must be plowed back into the enterprise, or donated for a charitable purpose.
Now, a trust is a different animal. All kinds of assets, tangible or intangible (e.g., a patent, a broadcast license) can be placed in trust. A trust can have a definite length, or it can continue indefinitely. The trustee or trustees owe a duty to a) the individuals for whom the trust was created (as in the case of a trust for minor children, for example) or b) the charitable purposes for which the trust was established (as is the case of some of those foundations who provide funding for NPR programming).
So the simple answer is yes, a trust can own a non-commercial broadcast license. To pass FCC muster, I would suspect that the trust would need to be for an indefinite period of time, and that the trust's purpose would be to operate the non-com station.
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