#GivingTuesday: Your $40/Month EZ Gift to K-LOVE/AIR1 Does Not Provide a Child with a Warm Winter Coat

For years, K-LOVE* has been telling people during the pledge drives that a qualifying pledge (this year $40/month via automatic bank withdrawal) will not only keep K-LOVE on the air but also provides a warm coat for a needy child.  The ad below gives the basic pitch:
Operation Warm 40 coat

The video promotion below makes it clear that K-LOVE claims that a $40/month gift is the reason why a child gets a warm coat.

In fact, there is reason to doubt the linkage promoted by K-LOVE. After looking into it, I think this promise is a kind of donor illusion.  For instance, buying a goat or other livestock for a family is mostly an illusion. Likewise, child sponsorships often do not benefit just one child. In this case, it doesn’t appear that there is a donor at Operation Warm waiting for a K-LOVE donor to give $40/month. The pitch creates an illusion that a K-LOVE donation prompts a coat to be given that otherwise wouldn’t be given. In fact, here’s what I think is happening:

1. K-LOVE listeners are told in many different ways that if they give $40 monthly to K-LOVE, a child will get a coat through an Operation Warm donor just because they called to give.

2. Although the information from K-LOVE and OW conflicts, I don’t believe that there are OW donors who base their gifts to OW on K-LOVE donors giving to K-LOVE. OW donors are asked by OW to give to pay for coats that will be given away even if K-LOVE doesn’t promote OW.

3. In exchange for publicity during the pledge drives, OW allows K-LOVE to take credit for a coat giveaway. K-LOVE attends an OW coat giveaway event and credits K-LOVE and its listeners for providing the coats, even though the donations to OW were not made on the basis of K-LOVE pledges.

In this way, K-LOVE and OW set up a dramatic illusion. Even though the two organizations agree before the pledge drive even starts how many coats they will give away (in exchange for the advertising), the K-LOVE on-air personalities pretend that the pledges matter. The coat for a needy child is held over the heads of donors. Will a needy child get a new coat? It’s all up to you, K-LOVE donor.

Some Former Employees Were Alarmed about the Illusion
Former employees I contacted confirmed that listeners are definitely under the impression that a $40 monthly gift to KLOVE/Air1 will cause an ‘anonymous donor’ to buy a coat for a child through Operation Warm.

They say many K-LOVE employees believe every new, qualifying K-LOVE/Air1 listener causes this ‘anonymous donor’ to buy another new coat. “For those of us behind the scenes, it was alarming to find out it wasn’t true,” one told me.

Straight Answers Are Hard to Get
Before I explain more, I want to say that K-LOVE and OW were initially responsive to requests. However, as I pressed for more information, I stopped receiving replies from both K-LOVE and OW. Specifically, I asked directly if coats would go to needy children even if K-LOVE wasn’t involved. This question was never directly answered.

Initially I asked OW three questions:

1. How many coats are given to children because of KLOVE new donors? In other words, how many coats go to children that wouldn’t be given to children if KLOVE donors didn’t donate?
2. Is there an Operation Warm donor that waits to see how many KLOVE donors give $40/month and then that donor funds coats corresponding to the number of new KLOVE donors?
3. If nobody donated $40/month to KLOVE, would Operation Warm give out the same number of coats to children per year?

Here is what Brock with OW told me in reply.

KLOVE and Operation Warm are partnering to celebrate and honor KLOVE listeners who support KLOVE’s mission through their Fall Pledge Drive. For every KLOVE listener who makes an EZ Pledge of $40 per month to enable KLOVE to continue its operations, a child will receive a new winter coat in honor of that listener. All of the EZ Pledge donations will be kept by KLOVE to support its operations and mission. Funding for the Operation Warm coats that are given to children will be made by Operation Warm’s donors.

The donations to Operation Warm were not made in honor of KLOVE listeners, but we provided the coats in honor of them, thanks to the funding by our donors.

Please note the final sentence. The donations were not made because (“in honor of”) K-LOVE listener pledges. However, in exchange for lots of advertising during K-LOVE’s pledge drive, OW gives a coat to a child to commemorate the donation. Does this mean that OW is holding on to coats waiting on K-LOVE donors to pledge? I don’t believe so, but if it does then I think donors should rethink giving to OW.

I also wrote K-LOVE with similar questions and received a reply from attorney Stacie Ford, General Counsel at K-LOVE:

Addressing your questions, our partnership with Operation Warm provides significant value to them and to us.  Our contract with OW makes clear that OW is providing the coats, and the consideration is the value of the promotion they receive from K-LOVE and Air1.  We are unambiguous regarding this agreement, and repeatedly inform listeners on-air and on our website that “100% of your gift stays with K-LOVE/Air1. When you give, a generous donor comes along side of your donation and supplies a winter coat to a child through Operation Warm.”

Specifically, OW secures donors with intention to allocate coats for the Pledge Drive.  Donors provide resources to OW based on the impact OW’s participation with K-LOVE and Air1 will have on OW’s mission.  In turn, K-LOVE and Air1’s inclusion of OW during the Pledge Drive increases the visibility and promotion of the non-profit. Notwithstanding, if any of the coats allocated for K-LOVE and AIR1 would have been donated to those in need regardless of the Pledge Drive, the Pledge Drive provided huge promotional value to OW that arguably multiplied the number of donors and donations they otherwise would have received.

In a follow up email, I asked Ms. Ford about Brock’s statement that money wasn’t given to OW because of K-LOVE donors. However, she did not answer.

OW and K-LOVE appear to be at odds over OW’s donations. Ms. Ford told me “When you give, a generous donor comes along side of your donation and supplies a winter coat to a child through Operation Warm.” However, Brock at OW told me “The donations to Operation Warm were not made in honor of KLOVE listeners…” One explanation makes it seem that a donor at OW is waiting for a K-LOVE pledge to make the donation of a coat. The other implies that donors simply give to OW independent of the pledge drive. Based on OW’s input and that of former K-LOVE employees, I don’t think there is direct linkage between K-LOVE pledges and an OW donation.

I received one more response from OW. This response is enlightening because it shows that K-LOVE and OW agree before the pledge drive how many coats OW is willing to part with in exchange for the advertising given by K-LOVE. OW’s Brock wrote:

Throughout their promotions, KLOVE clearly states that the EZ Pledge donations stay with KLOVE. Also, Operation Warm pays no fee to KLOVE; rather, KLOVE provides Operation Warm with very valuable promotional support which results in more support for OW and therefore more children receiving new winter coats.

Prior to our campaign with KLOVE, we mutually agreed on the number of coats that would be provided in coordination with the pledge drive, up to a certain number of coats.  If KLOVE met that number, that same number of coats would be provided to children through Operation Warm this season. KLOVE’s promotional support has allowed us to spread our mission and receive support we would not have received without them. We’re happy to report that KLOVE met their pledge numbers and 27,000 children throughout the country will receive a new coat that did not have one before!

I asked both Stacie and Brock what happens to those coats if K-LOVE’s donors don’t come through with the number of pledges agreed to by the two organizations. Neither organization answered. I believe those coats would go to children in the name of some other media partner or no media partner at all (OW gave away over 300,000 coats last year). In other words, if OW donors give money for coats, a child will get a coat, pledge drive or not. If that is not true, then something is wrong at OW.

So What’s Happening?
Putting all of these statements together, it appears to me that OW gets donations from their donors to give away coats. K-LOVE offers advertising to OW in exchange for the right to say that existing OW coats are being given in honor of K-LOVE donors. OW and K-LOVE agree in advance how many coats K-LOVE gets to leverage to listeners. At the end of the pledge drive, K-LOVE tells OW how many qualifying pledges were made and then OW allows K-LOVE to do a publicity giveaway event with coats which would have been given to children anyway.

I sent the paragraph above to K-LOVE and OW and asked them to correct any factual errors. I did not get a response from either organization.

If it is true that OW would withhold coats provided with OW donor dollars because K-LOVE donors didn’t make a qualifying pledge, then I think donors should question why OW would do that. According to Brock at OW, donors didn’t give money in honor of K-LOVE pledges and so the coats purchased/created with those donations should not be held back.

Does K-LOVE Need Your Money?
Remember, K-LOVE’s CEO made nearly $600,000/year in FY 2015, with eight executives earning over $200k.  Some of the on-air personalities make well over $100k.  In FY 2015, K-LOVE/Air1 took in over $150 million and had a surplus of $64 million. Think about that the next time a single mother working two jobs calls K-LOVE to offer her sacrificial donation.

Even if one rationalizes the pitch, please understand that a donation to OW instead of K-LOVE will actually provide coats to children that won’t happen otherwise. I am disappointed by this deception and call on donors to reconsider rewarding it with their funds. This Christmas there are real needs in our communities which can be directly met. Join me in giving to food pantries or some other local charity (or even Operation Warm which seems to be a pretty good group other than colluding with this donor illusion) which will get resources to needy children.

*Air 1 also uses the same promotion. Air 1 is a sister network also owned by Educational Media Foundation. Many of those stations play less praise and worship and more Christian rock than K-LOVE. When I say K-LOVE, I mean both networks.

K-LOVE Wants You to Pull Over and Pledge

KLOVE CarThe national Christian radio station is droning through their Fall pledge drive right now and the begging is fierce.

Just today a DJ was heard imploring drivers to pull over and pledge to keep K-LOVE on the air. That was a new one on me. The DJ actually wanted people driving to pull off the road and get that pledge in.  I hope nobody got hurt.

Just a reminder, K-LOVE’s CEO Mike Novak makes over $550,000 per year and K-LOVE’s net revenue over expenses for 2014 was over $64-million. That’s a lot of easy gifts.

My advice is to find a good local charity and bless it with anything extra you have over what you give to your church.

For more on K-LOVE, click here and scroll down the page.

K-LOVE First Promises Answer to Listener about Executive Compensation Then Fails to Follow Through

Back in May of this year, I published information about the finances of radio giant K-LOVE’s CEO and other executives. Several K-LOVE listeners who also read the blog thanked me for the information and also contacted K-LOVE to ask why the CEO made so much and why K-LOVE represented their financial picture as being precarious.

One couple, Bill and Sandra Ford, was promised a reply from K-LOVE. First, here is the Ford’s letter followed by K-LOVE’s reply.

From: Bill Ford [mailto:[email protected]]
TO: [email protected]
Sent: Sunday, May 01, 2016 11:01 PM
To: KLOVE
Subject: Mike Novak’s pay (KLOVE Comments, General Questions)

Dear Klove,  I’m writing you today due to a recent discovery. I recently found out that Mike Novak’s compensation is over five hundred thousand dollars a year. This is completely inappropriate for a man who is paid by people sacrificially giving each month. How can you go on the radio during pledge drives and ask people to support the ministry when the president is making more money than many medical doctors?  For years my wife and I supported a Christian/Jewish ministry until we found out that the head/founder of they ministry makes over a million dollars a year-disgusting when you consider where you think your money is going, and where it is going in reality. Please pray about this.
Sincerely,
Bill Ford, RN

K-LOVE’s reply:

From: President – KLOVE [email protected]

Date: May 3, 2016 at 3:10:59 PM PDT
To: “‘[email protected]'” <[email protected]>
Subject: RE: Mike Novak’s pay (KLOVE Comments, General Questions)

Dear Bill,

Thank you for reaching out with your concerns about the KLOVE pledge drive and specifically the salary for our CEO. Due to the nature of your concerns, your email has been forwarded to the chairman of our board, Mr. Darrell Chambliss. He will be responding as quickly as he is able.

We do appreciate you taking the time to share your thoughts. Please let me know if you do not receive a response after two weeks. I do not know Mr. Chambliss’ schedule so am not sure what his time-table will be, but will follow-up if needed.
Have a blessed day!
Jill Graves
Correspondence Assistant to the President
KLOVE Radio

Mr. Ford never heard from Ms. Graves or anyone from K-LOVE. Ford contacted me and gave me permission to approach K-LOVE with his correspondence. I told K-LOVE that I hoped they would answered Mr. Ford and that via the email I requested an on-the-record to his questions justifying the CEO’s compensation. Mr. Ford wrote a second time in June and I wrote to K-LOVE on June 30. To date, no one from K-LOVE has replied.
Mr. Ford told me that he is very dismayed with the stonewalling and is considering other giving options. I don’t blame him.

I predict that K-LOVE will not reply to these inquiries until major media attention comes their way. It now seems clear to me that K-LOVE’s leaders plan to avoid issues raised by listeners and will pursue business as usual as long as a majority of listeners allow it. If you feel so inclined as a K-LOVE listener, you can use the contact information above to contact the station with your questions.

Conversation with John Hall on WORD-FM about K-LOVE and David Barton

Yesterday, I was on WORD-FM with host John Hall discussing some issues surrounding the Christian music network K-LOVE. The entire podcast can be found on Soundcloud with the segment starting at 1:37:21 (click this link to start at the beginning of my segment).
Toward the end of the boardcast, John asked me about David Barton’s historical adventures which I was happy to discuss.
It just so happened that later that evening I attended a local festival and guess who was playing tunes for the crowd.
KLOVE Car

Another Indication K-LOVE May Not Need Your Money

KLOVE nascar
In addition to the hefty salaries earned by K-LOVE’s management (CEO well over half-million), the giant Christian radio network sponsors a Nascar car.
According Business Insider, Nascar sponsorship is expensive. Check out this image:
nascar-01-2013
According to the picture on K-LOVE’s website, the network has the premium logo locations and thus must be paying some serious coin to run with that crowd. Even if another party is helping to fund the sponsorship, the money is still being directed away from services to people.

UPDATE: Please see the comments section for some additional information. In a nutshell, Leavine Family Racing may be providing some of the funding for this car and K-LOVE may only be involved in four races, thus reducing the costs of advertising. 

I know it is marketing but if K-LOVE’s marketing budget allows for Nascar sponsorship, then I doubt they are going to close down stations if widows and people on fixed incomes don’t give their “easy” gift of $40/month.  Also, many small local churches who can barely afford to put an ad in the local paper need the donations more than K-LOVE does. Food pantries and kitchens just get by, especially during the summer months.