I'm one of "those who know." I filled out those grant forms myself when I was at a station. They are NOT vague or "fungible." They are very specific. When you get money from the government, they want to know exactly where it will be used, and how the money will serve the purpose for which it was given. Most of the funding comes in the form of "community service grants." It's matching money based on the amount the station raises locally.
Your argument reminds me of the mom and her drug addicted son. The mom proudly tells her friends "my son has a terrible and dangerous drug addiction. Because he is in such a bad condition I gladly pay for his rent, food and utilities, but I will not contribute a dime for any of his drug use"
I am also one of those in the know. I work with federal and other governmental grants on a regular basis - I have *taught* (indirectly) on the subject in the past. If you think that government funds are not fungible, you simply are WRONG. All cash is fungible, period unless you don't have any other dollars other than the ones the government gives you. If you do, (and KCRW does), every dollar that the government gives to its preferred project is one more dollar that the recipient organization can use for its own general purposes. KCRW has plenty of unrestricted funds at its disposal and every dollar they received from the government was one they didn't have to spend from their sizeable general fund. The government therefore is subsidizing the entire operation.