Educational Media Foundation (dba K-LOVE and Air 1 Radio)

Summary

In a nation where media is among the top influencers of culture, Educational Media Foundation (EMF) exists to move people into a deeper relationship with Jesus through high quality, faith-based media.

Parent company to K-LOVE and Air1-the two largest non-commercial Christian music radio networks in the country-EMF broadcasts on more than 900 signals in all 50 states and is among the top 10 U.S.-based audio streaming companies. The organization plans to extend their reach beyond radio, into films, publishing and podcasting, in 2020, with the goal or reaching more people, in more ways, for Jesus Christ.

This organization is a nonprofit 501(C) (3) corporation. All contributions to it are fully deductible to the extent allowed by law. It is a member of the Evangelical Council for Financial Accountability (ECFA).


Contact information

Mailing address:
5700 West Oaks Blvd.
Rocklin, CA 95765-3719

Website: www.emfbroadcasting.com

Phone: (916)-251-1600

Email: klove@klove.com


Organization details

EIN: 942816342

CEO/President: Bill Reeves

Chairman: Mark Voltmann

Board size: 8

Founder: Mr. Bob Anthony

Year founded: 1980

Tax deductible: Yes

Fiscal year end: 12/31

Member of ECFA: Yes

Member of ECFA since: 1996


Purpose

Educational Media Foundation (EMF) and its K-LOVE, Air1 and WTA brands exist to combat hopelessness by sharing the truth and love of Jesus Christ with a world plagued by division and despair.

We offer a positive and encouraging alternative to sensationalistic, divisive, and negatively charged media, and help people focus on the peace, joy, inspiration, unity, and transformative power of the Gospel.

We do this through radio and entertainment/media, spiritual engagement, pastoral care, crisis response training, prayer and other free Biblical-support services.


Mission statement

EMF's Mission:

Create compelling media that inspires and encourages audiences to have a meaningful relationship with Christ. EMF aims to ignite hope, change lives and unite hearts through Christian media and Biblical support through our pastoral and prayer team.

Our goal is that people would have a place to turn to find hope, encouragement, community, support, and most importantly, the message of Jesus.

EMF's Values:

We trust in God -Our faith, trust, and hope is in Christ. God's Word guides our decisions, refreshes us, and creates an unshakable faith. Our dependence on God is reflected in our commitment to prayer.

Create an Extraordinary Impact -We serve an extraordinary God who deserves our all. He allows us to create, produce and share media with His life-changing message.

We are Passionate, Creative, and Have Fun -Innovative Ideas and Solutions, individual initiative and having a good time make our work and lives more interesting.

Learn, Improve, and Grow -We challenge and stretch ourselves, each other, and the ministry to realize the full potential God has given us.


Statement of faith

Educational Media Foundation uses the following to express its faith:

We believe:

  1. The Bible to be the inspired, only infallible and authoritative Word of God.
  2. (2 Tim 3:15-17, 1 Thess 2:13, 2 Peter 1:21)
  3. There is one true God eternally existent in three persons: Father, Son, and Holy Spirit.
  4. (Deut 6:4, Isa 43:10-11, Matt 28:18-20, Luke 3:22)
  5. In the deity of our Lord Jesus Christ, in His virgin birth, sinless life, miracles, substitutional death on the cross, bodily resurrection, ascension to the Father and His personal return in power and glory.
  6. (Matt 1:23, Luke 1:31-32, Acts 10:37-38, Acts 2:22, Heb 7:26-27, 1 Cor 15:3-5, 2 Cor 5:21-6:1, Matt 28:6, Luke 24:39, 1 Cor 15:4-6, Acts 1:9-11, Phil 2:9-11, Heb 1:3)
  7. Regeneration by the Holy Spirit is absolutely essential for the salvation of sinful man; a person must experience a spiritual rebirth. Only through the power of the Holy Spirit is the Christian able to live a more godly life.
  8. (Rom 10:12-13, Eph 2:8-10, Titus 2:11, Titus 3:4-8, Rom 8:16, Eph 4:24, Titus 2:12)
  9. There is a resurrection of both the saved and the lost, the saved to eternal life in heaven, the lost to hell.
  10. (1 Thess 4:15-17, Rom 3:23-24, 1 Cor 15:51-52, Rev 20:11-15, Rev 21:6-8)
  11. Jesus Christ rose from the dead and is returning soon.
  12. (Zech 14:4-5, Matt 24:26, Matt 24:30, Rev 1:7, Rev 19:11-13)
  13. The Great Commission of the church is to go into the entire world and preach the Gospel to every person.
  14. (Mark 16:15, Luke 14:23, Matt 28:19-20, Acts 1:7-8, Mark 16:15 -16)
  15. In the spiritual unity of believers through the working of the Holy Spirit and the Lord Jesus Christ.
  16. (Eph 4:11-13, Ps 133:1, Phil 2:1-3)
  17. We believe in holy Christian living, and we must have concern for the hurts and social needs of our fellowmen.
  18. (Col 3:12-14, Rom 15:1-2)
  19. We believe we must dedicate ourselves anew to the service of our Lord and to His authority over our lives.
  20. (Col 2:9-11, Eph 6:7-8)

Financial efficiency ratings

Sector: Radio/ TV Stations

CategoryRatingOverall rankSector rank
Overall efficiency rating273 of 4297 of 16
Fund acquisition rating120 of 4293 of 16
Resource allocation rating214 of 4294 of 16
Asset utilization rating422 of 42915 of 16

Click here to read Educational Media Foundation (dba K-LOVE and Air 1 Radio)'s response to our ratings


Financial ratios

Funding ratiosMedian % for
all ministries in
MW database
20182017201620152014
Return on fundraising efforts Return on fundraising efforts =
Fundraising expense /
Total contributions
7%4%4%4%4%4%
Fundraising cost ratio Fundraising cost ratio =
Fundraising expense /
Total revenue
6%4%4%4%4%4%
Contributions reliance Contributions reliance =
Total contributions /
Total revenue
95%100%92%96%98%98%
Fundraising expense ratio Fundraising expense ratio =
Fundraising expense /
Total expenses
6%6%7%6%6%6%
Other revenue reliance Other revenue reliance =
Total other revenue /
Total revenue
5%0%8%4%2%2%
 
Operating ratiosMedian % for
all ministries in
MW database
20182017201620152014
Program expense ratio Program expense ratio =
Program services /
Total expenses
82%83%83%84%84%84%
Spending ratio Spending ratio =
Total expenses /
Total revenue
98%70%59%63%67%59%
Program output ratio Program output ratio =
Program services /
Total revenue
81%58%49%54%56%49%
Savings ratio Savings ratio =
Surplus (deficit) /
Total revenue
2%30%41%37%33%41%
Reserve accumulation rate Reserve accumulation rate =
Surplus (deficit) /
Net assets
3%9%14%14%14%18%
General and admin ratio General and admin ratio =
Management and general expense /
Total expenses
11%12%11%10%10%10%
 
Investing ratiosMedian measure
for all ministries
in MW database
20182017201620152014
Total asset turnover Total asset turnover =
Total expenses /
Total assets
1.280.200.180.220.230.21
Degree of long-term investment Degree of long-term investment =
Total assets /
Total current assets
1.5317.6511.9311.9016.2616.82
Current asset turnover Current asset turnover =
Total expenses /
Total current assets
2.513.452.142.583.773.47
 
Liquidity ratiosMedian measure
for all ministries
in MW database
20182017201620152014
Current ratio Current ratio =
Total current assets /
Total current liabilities
9.021.921.661.531.121.08
Current liabilities ratio Current liabilities ratio =
Total current liabilities /
Total current assets
0.110.520.600.660.900.92
Liquid reserve level Liquid reserve level =
(Total current assets -
Total current liabilities) /
(Total expenses / 12)
4.091.672.221.600.330.27
 
Solvency ratiosMedian % for
all ministries in
MW database
20182017201620152014
Liabilities ratio Liabilities ratio =
Total liabilities /
Total assets
9%9%13%9%14%20%
Debt ratio Debt ratio =
Debt /
Total assets
0%6%7%4%9%15%
Reserve coverage ratio Reserve coverage ratio =
Net assets /
Total expenses
64%467%486%419%370%386%

Financials

Balance sheet
 
Assets20182017201620152014
Cash$28,250,661$25,356,232$24,973,101$23,040,603$21,065,409
Receivables, inventories, prepaids$9,399,385$10,125,984$8,819,527$6,285,861$5,275,104
Short-term investments$0$17,500,000$10,000,000$0$0
Other current assets$0$0$0$0$0
Total current assets$37,650,046$52,982,216$43,792,628$29,326,464$26,340,513
Long-term investments$87,996,878$69,324,537$47,465,844$27,730,096$24,370,960
Fixed assets$53,807,181$54,864,980$55,232,580$52,235,340$50,348,771
Other long-term assets$484,882,443$454,659,072$374,848,252$367,674,427$341,947,231
Total long-term assets$626,686,502$578,848,589$477,546,676$447,639,863$416,666,962
Total assets$664,336,548$631,830,805$521,339,304$476,966,327$443,007,475
 
Liabilities20182017201620152014
Payables and accrued expenses$9,829,062$7,077,344$6,912,353$7,189,999$6,417,307
Other current liabilities$9,783,459$24,880,904$21,803,063$19,100,376$17,886,933
Total current liabilities$19,612,521$31,958,248$28,715,416$26,290,375$24,304,240
Debt$37,736,408$47,343,254$19,242,438$42,408,985$65,694,688
Due to (from) affiliates$0$0$0$0$0
Other long-term liabilities$0$0$0$0$0
Total long-term liabilities$37,736,408$47,343,254$19,242,438$42,408,985$65,694,688
Total liabilities$57,348,929$79,301,502$47,957,854$68,699,360$89,998,928
 
Net assets20182017201620152014
Unrestricted$605,354,528$551,944,615$472,718,741$406,802,704$351,862,391
Temporarily restricted$1,633,091$584,688$662,709$1,464,263$1,146,156
Permanently restricted$0$0$0$0$0
Net assets$606,987,619$552,529,303$473,381,450$408,266,967$353,008,547
 
Revenues and expenses
 
Revenue20182017201620152014
Total contributions$184,854,193$176,997,637$170,198,720$162,145,965$151,569,738
Program service revenue$1,348,308$6,382,720$0$0$0
Membership dues$0$0$0$0$0
Investment income($2,903,331)$5,270,869$439,098$423,968$413,778
Other revenue$1,143,873$4,104,951$7,477,869$3,170,870$3,127,300
Total other revenue($411,150)$15,758,540$7,916,967$3,594,838$3,541,078
Total revenue$184,443,043$192,756,177$178,115,687$165,740,803$155,110,816
 
Expenses20182017201620152014
Program services$107,292,874$93,912,984$95,373,250$93,212,337$76,584,438
Management and general$15,155,355$12,202,194$11,165,949$10,796,531$8,976,981
Fundraising$7,536,498$7,493,146$6,462,005$6,473,515$5,902,141
Total expenses$129,984,727$113,608,324$113,001,204$110,482,383$91,463,560
 
Change in net assets20182017201620152014
Surplus (deficit)$54,458,316$79,147,853$65,114,483$55,258,420$63,647,256
Other changes in net assets$0$0$0$0$0
Total change in net assets$54,458,316$79,147,853$65,114,483$55,258,420$63,647,256

Response from ministry

Caveat for One Star Rating under Asset Utilization: Educational Media Foundation has been afforded one star under the Asset Utilization ratios, primarily because of the result under the "degree of Long-term investment" section. The resulting ratio appears very high when you compare it to the ministry average. In our opinion, this result fails to take into account the uniqueness of our industry. In order for EMF to transmit our Christian Radio broadcast signals, we must purchase the FCC license. This is oftentimes the most expensive and most valuable part of the purchase. We capture this value in the line item "FCC licenses, permits, and application costs" under Other Assets on our Consolidated Statement of Financial Position. The large dollar value within this account is evidence of our success in obtaining these licenses. We do not believe the resulting one star clearly reflects our financial health as it is not factoring in the uniqueness of our business.


History

1980s:

  • 1982: KLOVE began in Santa Rosa, California, as a single radio station, under the call letters KCLB. It was owned by Educational Media Foundation (EMF), a non-profit 501(C)3 Corporation. The idea for this full-time contemporary Christian music radio station was conceived by popular radio personality Bob Anthony. The slogan used was "Positive Alternative, Christian Music Radio KCLB 92 FM".
  • 1986: Dick Jenkins was hired as General Manager, replacing Bob Anthony.
  • 1988: KCLB moved to Mount Saint Helena and changed its on-air brand to "K-LOVE" and adopted their now legendary slogan, "Positive, Encouraging K-LOVE".
1990's:
  • K-LOVE expanded its reach by purchasing small stations and translators and repeating its signal.
  • Experienced on-air talents were added to include David Pierce, Mike Novak, JD Chandler and Larry Wayne.
  • With the help of satellite technology, K-LOVE Radio network expanded into Oregon, Arizona, Oklahoma and Texas.
  • K-LOVE increased its reach online by streaming live on klove.com.
  • 1995: Two radio stations in Southern California joined together with a third, near Portland, Oregon, creating a sister network to K-LOVE called AIR1, which targeted to a younger demographic.
2000's:
  • K-LOVE went through a period of expansion through the purchase of stations and translators across the United States when the FCC allowed the filing of new applications for FM translators. Over 250 applications were approved during this time, allowing for further expansion into other states such as Colorado, Illinois and Missouri. This expansion made K-LOVE Radio network the largest broadcaster of contemporary Christian music in the world.
2010-Current:
  • K-LOVE/AIR 1 began to purchase more stations and translators within all 50 US states including Alaska and Hawaii. Medium and larger markets were entered in the states of California (Stockton, San Francisco, Los Angeles, San Diego), Connecticut, Florida, Illinois (Chicago), New York, Ohio, Tennessee (Nashville) and Utah.
  • 2013: K-LOVE announced the inaugural K-LOVE Fan Awards-a listener-voted awards show for contemporary Christian musicians held in Nashville, TN.
  • December 2013, EMF partnered with UP Television Network for a televised Christmas event titled, "K-LOVE Music City Christmas". For the first time in history, EMF was on television in over 58 million homes nationwide.
  • 2017 & 2018: EMF expanded its reach through the purchase of stations and translators in the Los Angeles, New York and Chicago markets.
  • June 2018: K-LOVE Radio launched K-LOVE Classics, streaming classic Christian music from the 80's, 90's & early 2000's.
  • 2018: Mike Novak, CEO, announced his retirement. Mr. Novak joined EMF in 1998 and became CEO in 2007. He led dramatic grown of the networks, now heard on more than 900 stations in all 50 states and streamed online. When he began as CEO, K-LOVE and AIR1 were heard on more than 600 stations in 45 states.
  • January 2019: After much research and planning, EMF changed the format of Air1 to offer an authentic, worship-centered experience for listeners and became the first contemporary Christian radio network focused on worship music.
  • June 2019: EMF expanded its reach in a Cumulus Media acquisition of six of its stations across the county. This led to significant growth in major markets, including first-time entry into the nation's capital and the influential southern city of Atlanta, as well as the strongest, farthest-reaching signal in New York City, and new signals in Syracuse, Savannah and San Jose, increasing the networks' total reach by more than 32 million.
  • July 2019: Bill Reeves became the ministry's fourth CEO in the organization's 37-year history. Bill's experience in Christian entertainment and marketing is viewed as an asset that will help EMF expand its reach beyond radio and diversify its media portfolio.
  • October 2019: EMF acquired the business and media assets of The WTA Group, a leader in marketing, licensing and distribution of faith-based books, products and films, including box-office hits Overcomer, I Can Only Imagine and God's Not Dead. Together EMF and WTA will explore new ways to bring positive, encouraging, relevant faith-based media to growing audiences.
More information can be found on www.klove.com, www.air1.com and the WTAgroup.com.

Program accomplishments

What began as a single radio station back in 1982 has grown into the country's two largest non-commercial Christian radio networks and is among the top 10 U.S.-based audio streaming companies. But more than that, EMF is helping people grow closer to God and to find hope and encouragement in Jesus Christ.

With a traditional-signal reach of 200 million, stretching across 66 percent of the U.S. population, EMF has a dedicated listenership in all 50 states on more than 900 signals. Every listener is offered the opportunity to be prayed for (by submitting a prayer request online), or to be prayed with (by calling an 800# to speak with one of EMF's 33 fulltime pastoral care team members, which includes 12 ordained pastors).

EMF offers community and resources to accompany people on their faith walk, regardless of where they are in their journey. Free services they provide include:

  • 24/7 Crisis Prevention - Intervening in an average of more than 700 crisis situations per year
  • Biblical Counseling from Trained Pastors - Coming alongside those in need to provide hope and guidance through God's Word
  • Prayer Support - Engaging in more than 200,000 prayer-focused calls annually, and praying for an average of 1,500 people daily
  • Crisis Response Care - Soul-care training for First Responders throughout the country
  • Dare 2 Dream - Student assemblies focused on promoting Biblical values in public schools
EMF has thriving domestic and global partnerships, enhanced by support from K-LOVE and Air1 audiences. In 2018, they generated 65,000 sponsorships for Food for the Hungry, which positively impacted more than 500,000 people globally by serving their physical needs and by sharing the Gospel. They also raised 3 million dollars for Convoy of Hope, which used the funding to serve people across the U.S. in the wake of more than 20 natural disasters.

In 2017, EMF created and funded the "Night of Hope" benefit concert, raising $600,000 to support Convoy of Hope in providing disaster relief efforts to those affected in the Houston area by Hurricane Harvey.

In 2016, K-LOVE entered the NAB (National Associations of Broadcasters) "Service to America" awards program and won the distinguished "Service to Community Award for Radio" through its "Share the Love" campaign which directly addressed community concerns regarding 1) a lack of support for local non-profit organizations, 2) foster care, 3) homelessness, 4) divorce and 5) disaster preparedness.

Additionally, EMF partners with other ministries through fundraising and the donation of airtime to support a variety of causes. Partners have included: International Cooperating Ministries, Compassion International, Food for the Hungry, Teen Challenge, Cure International, Faith Comes by Hearing, Shoes for Orphan Soles, Angel Tree, World Vision, Operating Christmas Child, Operation Warm, Survive to Five and Convoy of Hope.

Needs