How is KDHX doing financially?
KDHX has had a particular focus on organizational financial health since 2015.
In that time, KDHX cleared over $2M of debt, established a cash reserve, had 6 clean annual federal audits, and invested resources back into radio programming. It is the fiduciary responsibility of the executive director and board to ensure the organization is financially healthy. KDHX went through a period of difficult financial times that called for direct action to re-establish financial health.
1. The move from 3504 Magnolia to 3524 Washington Ave in 2013 was a highly anticipated upgrade to KDHX Studios. KDHX launched a capital campaign to raise funds to pay for the buildout of the new building, new broadcast equipment for the studios, the move, and increased staffing for The Stage and the Folk School. The goal for the capital campaign was $4.5M. Read more about the reasons for the move to Washington Ave…
2. Two things happened. First, KDHX was not able to raise the full $4.5M, falling short by a little over $2M. Second, construction costs were higher than expected. To compensate for the capital campaign shortfall and the higher construction costs, KDHX took out loans to cover the rest of the building, equipment, and move costs.
3. Unfortunately, the expectation that the move to Washington Ave would raise the profile of KDHX, thus increasing revenue through events held in the Stage, classes at the Folk School, and increased donations, was not realized.
4. By 2015, KDHX was overextended with debt, unable to cover staff costs fully, and unable to invest expected resources into programs like the Folk School, The Stage, or even radio programming.
5. KDHX embarked on a multi-pronged approach to decreasing debt and expenses, exploring creative solutions to increase the organization's financial health. The re-evaluation of expenses, debt, and programming, led to decisions that created a leaner organization, including fewer staff and programs. Read more about changes to Folk School and The Stage.
6. As KDHX gained financial ground, the station continued the concept of “multiplication by subtraction.” KDHX chose to “subtract” programs like The Stage and the Folk School and “multiply” available resources back into our flagship program, radio. On the radio dial at 88.1 FM in St Louis and online at KDHX.org, KDHX is investing in independent music and media.
KDHX remains highly focused on financial management and is careful and intentional with any expansion, including hiring additional staff and investing in new programs. As KDHX refocused on what the station does best - independent radio - listenership and supporters from all over the country have increased, allowing KDHX to continue to thrive.