UK Public Services and BBC World Service – Permitted Means of Finance
16.4.26 The UK Public Services and the World Service may take finance from:
- BBC Commercial Activities[15]
- BBC Trading Activities[16]
- voluntary payments of the licence fee, legacies or other donations
- The Open University for learning and educational output in line with the Framework Agreement between the Open University and the BBC
- any co-production agreement[17].
The following activities must conform to the Statement of Policy on Use of Alternative Finance in BBC Content[18]:
Partnerships
16.4.27 The UK Public Services and the World Service may use funds derived from any not-for-profit cultural, arts, sports, educational and science bodies or similar organisations but only where the funding is compatible with the Statement of Policy. See Editorial Partnerships for more details.
(See 16.4.11-16.4.15)
Co-Funding
Co-funding for Public Services is financing for output by not-for-profit bodies in minority languages. It may also be appropriate in other limited circumstances such as learning and educational output targeted at a specific section of the audience, where it might be unjustifiable to fund the output entirely from the licence fee.
16.4.28 The BBC may accept co-funding from not-for-profit bodies for output in minority languages such as on BBC Alba, or in Irish Gaelic, and in other limited circumstances – but only where compatible with the Statement of Policy, to represent and serve the UK's nations, regions and communities. Occasionally, the BBC may accept co-funding from not-for-profit bodies for learning or educational content, or output targeted at a specific section of the audience, in circumstances where it would be unjustifiable to fund output entirely from the licence fee.
Suitable co-funders include publicly funded bodies, charities, charitable trusts or voluntary bodies.
Co-funding must never be taken for news, current affairs or consumer advice content.
Co-funded editorial content must not promote the funder.
Mandatory Referral: Any co-funding projects must be approved in writing by the relevant director or their nominated representative.
Competitions, Prizes and Awards
16.4.29 On UK Public Services and the World Service, jointly organised competitions, donated prizes for viewer, listener or online competitions, and external funding of a prize, bursary or award, must conform to the Statement of Policy on Use of Alternative Finance in BBC Content.[19]
(See Section 17 Competitions, Votes and Interactivity: 17.2.8)
Sponsored UK Public Service and World Service Events
Sponsored BBC Online or On-Air Events
Sponsored editorial content (which may include a programme, channel, programme segment or block of programmes) is editorial content that has had some or all of its costs met by a sponsor. It includes advertiser-funded programmes. Sponsors must be identified by means of sponsorship credits.
A sponsor (of editorial content) means any public or private undertaking or individual (not engaged in the provision or production of content) funding the editorial content (or its publication or broadcast) with a view to promoting its name, brands, products, organisations, services, trade marks and/or its activities.
16.4.30 The UK Public Services and the World Service may mount public events, such as concerts and award ceremonies, which are held at outside venues and covered online or on air. These events are key to fulfilling the BBC's public purpose remit to bring people together for shared experiences and to engage personally with the BBC.
In some cases, it may be acceptable to supplement the cost of mounting a public event with sponsorship from a non-commercial body.
Mandatory Referral: Any proposal to defray the cost of a UK Public Service online or on-air event or a World Service online or on-air event targeted at a UK audience by taking commercial sponsorship income must be referred to Editorial Policy, Public Policy and Regulatory Legal who will consider whether:
- the proposal meets the Statement of Policy on use of Alternative Finance in BBC Content[20]
- the proposal would bring the BBC into disrepute
- the proposal would raise adverse market impact issues
- the proposal would lead to a perception that the BBC was promoting one commercial organisation over its competitors.
Mandatory Referral: Any proposal for a UK Public Service or World Service joint event with a third party or a hybrid event where a UK Public Service or the World Service is mounting an event on behalf of a third party, which is to be shown on UK Public Service channels and which takes commercial sponsorship, must be referred to Editorial Policy, Public Policy and Regulatory Legal to be considered against the Statement of Policy.
Mandatory Referral: Any proposal for sponsorship of a UK Public Service online or on-air event, or for a World Service online or on-air event targeted at a UK audience, and the proposed credits, must be referred to a senior editorial figure, or for independent production companies to the commissioning editor and Editorial Policy, who will consider whether:
- the proposal meets the Statement of Policy on use of Alternative Finance in BBC Content[21]
- the proposal would bring the BBC into disrepute
- the proposed credits are in line with the guidance on Sponsored Public Service Events and are not unduly prominent.
(See guidance: Sponsorship of BBC On-Air or Online Events Broadcast on BBC Public Services)
16.4.31 On UK Public Services and World Service events targeted at the UK, the money from the sponsor may only be used towards the costs of mounting the event and no sponsorship money may be used for production or broadcast coverage costs.
Production must keep separate accounts for event and broadcast costs.
16.4.32 The UK Public Services and the World Service targeted at the UK may cover National Lottery events and other lotteries' events with referral to Editorial Policy – see other referrals earlier. Sponsorship is only acceptable for online or on-air events which are distinctive and help the BBC promote its public purposes. Events which are eligible for sponsorship include:
- concerts, performance, cultural or artistic events including but not limited to competitive performance events which celebrate artistic achievement
- BBC award ceremonies
- BBC community, or youth talent search initiatives which include an online or on-air event.
News and current affairs on-air or online events, and events based on general consumer advice programmes, must not be sponsored.
In addition:
- the sponsor must not be featured in the title of a BBC event
- online or on-air events must not create a conflict of interest which could compromise the BBC's impartiality, editorial integrity and independence[22]
- sponsorship arrangements must not give the impression that a BBC programme or service is being sponsored. Credits should make it clear that it is the event itself which is being sponsored
- a contractual arrangement which guarantees online or on-air credits must not be entered into because it could amount to product placement.
Mandatory Referral: Any proposal for online or on-air events on UK Public Services to accept product sponsorship must be referred to BBC Editorial Policy who will consider whether:
- the proposal meets the Statement of Policy on use of Alternative Finance in BBC Content[23]
- the proposal would bring the BBC into disrepute.
16.4.33 Organisations which are associated with the following must not sponsor UK Public Service or World Service events:
- political parties and political organisations
- foreign governments
- lobby groups
- faith, religion and equivalent systems of belief
- tobacco firms or those mainly known for tobacco-related or other smoking-related products
- adult products and services
- weapons manufacturers.
Mandatory Referral: Any proposal to accept sponsorship from alcohol, gambling and e-cigarette organisations should be referred in advance to a senior editorial figure and Editorial Policy.
Mandatory Referral: Sponsorship by any tourist or trade boards may be acceptable but must be referred in advance to a senior editorial figure and Editorial Policy.
16.4.34 The sponsor's agenda must not determine the editorial remit of the event and the event must not become a vehicle for promoting the sponsor or its activities.
It is not normally appropriate to broadcast or embed a live stream from an event sponsor on a UK Public Service or World Service platform.
(See 16.4.20-16.4.21)
Sponsored Awards
16.4.35 UK Public Service awards given at a BBC event may be supported by a non-commercial sponsor.
(See Section 17 Competitions, Votes and Interactivity: 17.4.8-17.4.11)
Sponsored Off-Air Events
16.4.36 BBC off-air events may take sponsorship.
(See guidance: Public Service Off-Air Events)
Ticket Sales
16.4.37 The BBC may recover costs from the proceeds of ticket sales for BBC UK Public Service or World Service events which contribute to the BBC's Mission and Public Purposes.[24] This should be in line with the Statement on Ticketing for BBC Public Service Events.[25]
16.4.38 Admission should not be charged to regular recordings of programmes.
(See guidance: Ticketing for BBC Events and Programmes)
Ticket revenue must only cover the costs of an event or series of events and not be used for broadcast or production costs. The proceeds are not designed to generate further income for the BBC.
Mandatory Referral: Tickets to events and/or BBC shows may be included in auctions and prize draws to raise money for BBC partner charities. Any such proposals must be referred to the senior editorial figure in charge of the content which is to be included. They must also be referred to Editorial Policy and ITACU (Interactivity Technical Advice and Contracts Unit).
Production, commissioning and Commercial Rights and Business Affairs (CRBA) should keep separate accounts of event and production costs and records of ticketing revenue going to the BBC or via the BBC.
There is a procedure for approval of new events and ongoing approval for existing events.
(See guidance: Ticketing for BBC Events and Programmes)
Mandatory Referral: The commissioning of a new category of event, which is not a regular recording, with charged ticketing arrangements must be approved by the relevant Head of Department/ controller who must refer to Editorial Policy, Public Policy and Regulatory Legal.
Makeovers
16.4.39 UK Public Services and the World Service must cover the full production costs of makeover programmes.
The homeowner or organisation benefiting may contribute towards some makeover costs, but a financial contribution must not be a pre-requisite for taking part in a makeover programme. Such arrangements must conform to the Statement of Policy on Use of Alternative Finance in BBC Content.[26]
(See guidance: Makeover Programmes – funding and selection of contributors)
No money from the homeowner may go into a production budget. Production must keep separate accounts for the programme and the makeover.
(See Section 15 Independence from Commercial and Other External Interests: 15.4.16)
Funding of Online or Off-Air Supporting Material
16.4.40 Outside funding for online or off-air supporting material or services on UK Public Services and the World Service may be accepted in the form of sponsorship from a third party, which would usually be a not-for-profit organisation.
Mandatory Referral: Any proposal for funding of online or off-air supporting material from a commercial organisation must be referred to Editorial Policy who will consider whether the funding would amount to BBC promotion of the organisation, its products or services. The third party must also meet the Guidelines on Appropriateness.
(See 16.4.1-16.4.10)
(See Section 15 Independence from Commercial and Other External Interests: 15.4.28)
Other UK Public Service and BBC World Service External Relationships
Coverage of Sponsored Third-Party Events
16.4.41 The BBC covers a wide variety of third-party events, sports events, awards shows and music events, many of which are sponsored.
In such coverage:
- the enabling role of sponsors should be fairly credited
- sponsors must not be promoted in the BBC coverage. Any references and credits must not be unduly prominent
(See Section 15 Independence from Commercial and Other External Interests: 15.4.1-15.4.9)
- third-party sponsored events must not be created solely to attract broadcast coverage
- the UK Public Services or the World Service targeted at UK audiences must not accept any money from sponsors or organisers towards the cost of any element of the broadcast coverage of an event, unless the organiser is a co-producer. However, they can pay all the costs associated with the event itself
- a contractual arrangement must not be entered into which guarantees a sponsor a set number of minutes of signage reflection on air.
16.4.42 Mandatory Referral: Any proposal to include references to sponsors of third-party, non-sports events online or on air must be referred to a senior editorial figure, or for independent production companies to the commissioning editor, and Editorial Policy. Any proposal to use content from the sponsor on UK Public Service or World Service output or platforms must also be referred.
They will consider whether:
- the proposals meet with the guidance on Coverage of Sponsored (Non-Sports) Events mounted by Third Parties
(See guidance: Coverage of Sponsored (Non-Sports) Events mounted by Third Parties)
- the reference creates the impression that UK Public Service or World Service editorial content has been sponsored.
16.4.43 Links from UK Public Service or World Service platforms covering events to the sponsor's platforms must be editorially justified and must be to areas which give relevant information about the event and do not sell products or services.
16.4.44 The sponsor should be appropriate. Coverage of the sponsored event must not compromise the BBC's impartiality, editorial integrity or independence.
(See 16.4.1-16.4.10)
16.4.45 Mandatory Referral: Any coverage by a UK Public Service or the World Service of an event that is sponsored by a commercial brand or product could carry with it an increased risk of undue prominence. It must be referred to a senior editorial figure and may be referred to Editorial Policy who will consider whether the risk may be mitigated.
If an event is sponsored by a BBC Commercial Service it must also be referred to a senior editorial figure and to Editorial Policy in case of a risk of cross-promotion. They will consider if this can be mitigated.
(See Section 15 Independence from Commercial and Other External Interests: 15.4.25)
The National Lottery
16.4.46 The BBC may cover the National Lottery which is established by an Act of Parliament.
(See 16.4.14)
Charities
Broadcast Appeals
16.4.47 The UK Public Services make airtime and online space available for broadcast appeals by charities as a public service broadcaster. These appeals are distinct from long-term charity partnerships. They fall into several different categories:
- the regular 'access' appeal slots on Radio 4, BBC One's Lifeline, Radio Ulster and BBC TV Northern Ireland
- local radio
- other one-off appeals.
(See 16.4.49)
(See guidance: Charitable Appeals)
The selection of broadcast appeals should reflect the range of the charitable sector. The selection process must be fair and transparent and should include criteria looking at financial robustness and governance of the organisation.
The choice of charities must be overseen by the Charity Appeals Adviser, with advice from Editorial Policy.
For requests for content from charities, see Section 13 Use of BBC Content After Publication or Broadcast.
(See Section 13 Use of BBC Content After Publication or Broadcast: 13.4.31-13.4.41)
All broadcast appeals should meet the guidance on Charitable Appeals.
Mandatory Referral: Proposals for broadcast appeals (which are not cross-BBC charity fundraising initiatives) must be referred to the Charity Appeals Adviser and Editorial Policy who will advise on the processes required to ensure fair and transparent selection.
(See guidance: Charitable Appeals)
Disasters Emergency Committee Appeals
16.4.48 In the case of a major international disaster, the BBC may broadcast or publish an appeal on behalf of the Disasters Emergency Committee, which represents the UK's leading humanitarian aid charities. The BBC must retain independent editorial control and the broadcast must comply with the Editorial Guidelines.
Mandatory Referral: The approval process and arrangements for the broadcast of such appeals should meet the BBC's guidance for Disasters Emergency Committee appeals and referral must be made to the Charity Appeals Adviser who will liaise with senior figures across the BBC to seek approval for the appeal from the Director-General.
(See guidance: Charitable Appeals)
Cross-BBC Charity Fundraising Initiatives
16.4.49 The BBC runs cross-BBC charity fundraising initiatives such as BBC Children in Need and Comic Relief.
These initiatives are partnerships between the BBC and charitable organisations. They:
- are part of a partnership agreement and the BBC may co-produce with the charity in such initiatives
- may be mounted with a charity which is an umbrella organisation that gives grants to a wide range of charities or an initiative with a number of separate charities for an agreed common editorial aim with the BBC as broadcast partner
- will usually consist of a range of programming and content from the BBC and the charitable partner
- should meet the guidance on cross-BBC charity fundraising initiatives.
(See guidance: Charitable Appeals)
Mandatory Referral: Advice must be sought from Editorial Policy before opening discussions with prospective partners for the start of a new cross-BBC charity fundraising initiative. Editorial Policy will consider whether the initiative would compromise the BBC's impartiality, editorial integrity and independence.
Editorial Policy will then consult the Charity Appeals Adviser if the proposal is due to be taken forward, so that consideration can be given to any likely impact across other BBC regular appeals.
References to Charities in Other BBC Output
16.4.50 Apart from the BBC broadcast appeals and cross-BBC charity fundraising initiatives, BBC editorial content should not directly appeal for funds for charities.
(See Section 3 Accuracy: 3.4.13-3.4.14)
Impartiality, editorial integrity and independence must be retained when covering the work of charities and one charity must not appear to be favoured over another.
BBC World Service – Additional Permitted Means of Finance
16.4.51 In addition to the permitted means of finance that are applicable under the Framework Agreement,[27] the World Service may be supported by alternative finance to supplement its funding by the licence fee as set out in the BBC World Service Statement of Policy for Sources of Finance Other Than the Licence Fee.[28]
(See 16.4.26-16.4.40)
The World Service must keep a record of the limited alternative finance that it takes.
16.4.52 The World Service is only permitted to carry an appropriate and proportionate amount of advertising and sponsorship on its services which are not targeted at UK audiences. Advertising and sponsorship must meet the Advertising and Sponsorship Guidelines for BBC Commercial Services and must take account of the likely expectations of target audiences, regulatory requirements and local market norms in the relevant territory.
(See Advertising and Sponsorship Guidelines for BBC Commercial Services)
The World Service may also take externally funded content, which is not sponsored content, but which is either:
- funded by BBC Media Action as long as any relevant external funding provided to Media Action meets the applicable compliance procedures in accordance with BBC Media Action's constitution or
- externally funded by other appropriate external funders, provided that it is consistent with the Editorial Guidelines.
The World Service may also enter into an agreement under which the UK Government provides funding for the World Service for a specific period or purpose. It must be consistent with the BBC Framework Agreement.[29]
- [15] As defined by Clause 23 of the Framework Agreement. ↩
- [16] As defined by Clause 23 of the Framework Agreement. ↩
- [17] Broadcasting: An Agreement Between Her Majesty's Secretary of State for Culture, Media and Sport and the British Broadcasting Corporation December 2016 Clause 49. ↩
- [18] Statement of Policy on Use of Alternative Finance in BBC Content (Clause 49 (4) of the BBC Framework Agreement 2016). ↩
- [19] Statement of Policy on Use of Alternative Finance in BBC Content (Clause 49 (4) of the BBC Framework Agreement 2016). ↩
- [20] Statement of Policy on Use of Alternative Finance in BBC Content (Clause 49 (4) of the BBC Framework Agreement 2016). ↩
- [21] Statement of Policy on Use of Alternative Finance in BBC Content (Clause 49 (4) of the BBC Framework Agreement 2016). ↩
- [22] An example could be sponsorship by organisations directly related to the subject matter of the event or editorial content connected with it. ↩
- [23] Statement of Policy on Use of Alternative Finance in BBC Content (Clause 49 (4) of the BBC Framework Agreement 2016). ↩
- [24] Clause 49(4)(h) of Broadcasting: An Agreement Between Her Majesty's Secretary of State for Culture, Media and Sport and the British Broadcasting Corporation December 2016. ↩
- [25] Policy Statement on Ticketing for BBC Public Service Events 2017. ↩
- [26] Statement of Policy on Use of Alternative Finance in BBC Content (Clause 49 (4) of the BBC Framework Agreement 2016). ↩
- [27] Broadcasting: An Agreement Between Her Majesty's Secretary of State for Culture, Media and Sport and the British Broadcasting Corporation December 2016. ↩
- [28] The BBC World Service Statement of Policy for Sources of Finance Other Than the Licence Fee ('Alternative Finance') 2017. ↩
- [29] Broadcasting: An Agreement Between Her Majesty's Secretary of State for Culture, Media and Sport and the British Broadcasting Corporation December 2016. ↩