From Corey Deitz,
Your Guide to Radio.
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The Communications Act and the FCC’s rules require following the rules listed below. Any circumvention will color a person or entity as participating in payola.

When a broadcast licensee has received or been promised payment for the airing of program material, then, at the time of the airing, the station must disclose that fact and identify who paid for or promised to pay for the material. All sponsored material must be explicitly identified at the time of broadcast as paid for and by whom, except when it is clear that the mention of a product or service constitutes sponsorship identification.

Any broadcast station employee who has accepted or agreed to accept payment for the airing of program material, or the person making or promising to make the payment, must disclose this information to the station prior to the airing of the program.

Any person involved in the production or preparation of a program who receives or agrees to receive payment for the airing of program material must disclose this information. Broadcast licensees must make reasonable efforts to obtain from their employees and others they deal with for program material the information necessary to make the required sponsorship identification announcements.

The information must be provided up the chain of production and distribution before the time of broadcast, so the station can air the required disclosure.

These rules apply to all kinds of program material aired over radio and television stations. Some may also apply to cablecasts.

--From The FCC website.