As Troubles Mount, Newspaper Industry Reconsiders Business Model
As Troubles Mount, Newspaper Industry Reconsiders Business Model
As precipitous declines in revenue put the future of many U.S. newspapers in doubt, one idea gaining attention is the conversion of newspapers into tax-exempt nonprofits supported by endowments, the Associated Press reports.
Unabile to generate sufficient revenue from their Web sites to offset declines in print and classified ad revenue, newspapers across the country are being forced to lay off hundreds of employees, scale back home delivery, and make other cuts — to no avail. In recent months, the owners of the Los Angeles Times, the Chicago Tribune, the Philadelphia Inquirer, and the New Haven Register have sought Chapter 11 bankruptcy protection, while last week the Rocky Mountain News shut its doors and the San Francisco Chronicle faces a similar fate if it cannot find a way to slash expenses. Desperate to protect their franchises, newspaper executives in other cities are rethinking every aspect of their operations, including their status as for-profits.
Indeed, some nonprofits have already entered the field, including ProPublica, an independent nonprofit newsroom that produces investigative journalism in the public interest; Minnpost.com, which was created with $850,000 donated by four families and support from more than nine hundred donors and foundations; and efforts at Boston University and the University of Wisconsin. All these projects are young and relatively small, however, and their endowments, if they have any, are modest.
However, before the idea of endowed not-for-profit newspapers can take hold, say experts, it must overcome resistance from the very newspapers that could benefit. Objections include the fear that major donors could interfere editorially or that tax-exempt status could disqualify newspapers from endorsing candidates and running editorials on pending legislation. On a more practical level, some question whether the millions of dollars needed to create an endowment large enough to support a newsroom could be raised during the worst recession in decades.
Charles Lewis, who started the Center for Public Integrity, a nonprofit investigative journalism organization, said that the future of good journalism may depend on whether "the philanthropic community steps up and embraces this civic moment and crisis and tries to solve it. This is a failure of the market. The market can no longer support news substantially."
Christoffersen, John.
“Decline in Newspapers Renews Idea of Nonprofits.”
Associated Press
3/02/09.
Primary Subject: Journalism/Media
Location(s): National
FC013107
| 
print
e-mail
