Newspapers may seek philanthropy to support news-gathering (Dinosaur Media DeathWatch™)

Online Journalism Review ^ | January 22, 2009 | David Westphal

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Could newspapers and local broadcasters begin seeking philanthropic support from the civic foundations and private donors that are starting to bankroll news non-profits? It appears entirely likely. With for-profit media watching their news-gathering resources dwindle, some editors say they're open to the idea of seeking help from donors.

Charlotte Hall, president of the American Society of Newspaper Editors, told me the idea raises multiple questions about how newspapers could solicit philanthropic support and still retain credibility. But bottom line? "I believe that a model could emerge for foundations to fund some local reporting at newspapers -- investigative reporting or an important local beat, for example," she said in an e-mail. "A new kind of firewall would be needed to assure independent reporting and unencumbered editing."

The idea that for-profit media might seek subsidies from community foundations came into sharp focus last week, when the Knight Foundation awarded $5 million to 21 civic foundations that pitched plans for expanding news and information in their communities. Some of the ideas sounded much aligned with the mission statements of local newspapers and TV stations.

The most striking was a winning proposal from the San Antonio Area Foundation, which received a $488,500 Knight grant to produce live Web video on community issues. Its proposal began this way: "Although ranked in the top 50 media markets in the country, San Antonio lacks in-depth news coverage about diverse communities and issues."

Robert Rivard, editor of the San Antonio Express-News, was taken aback. He sought out the foundation's director, Reggie Williams, to ask how the foundation could be making such a claim given the newspaper's concerted efforts to reflect and report on the city's diversity. Williams issued a statement praising San Antonio's local media and, while not backing away from the project, said it was in no way intended as a slap.

But no expression of comity could mask the powerful dynamic on display. Local foundations were teaming up with Knight to support a total of $17 million worth of new-media journalism that, in many cases, the for-profit media in town would love to be doing.

I e-mailed Rivard asking if the Express-News would be willing to compete for foundation money of the kind Knight gave to the San Antonio foundation. It took him less than 5 minutes to respond. "We would have shown keen interest in such a grant, which could fund a couple of teams of online documentary journalists for two years and help us move more rapidly to enrich the site with dynamic content not repurposed from the print edition," he said. "I wouldn't have a problem accepting funds from such a reputable foundation, especially since it's a leader in the movement to reinvent the way we gather and distribute news and information…"

Nancy Barnes, editor of the Minneapolis Star Tribune, said newsroom leaders there have also kicked around the idea of seeking philanthropic support. "What we need most as a newspaper is investigative help," she said. "If I could get some non-profit funding for that, it's a plus… That's the part that must survive." The Star Tribune last week sought to reorganize its business under Chapter 11 bankruptcy provisions.

And how does Knight feel about the possibility of redirecting some of its philanthropy to newspapers and broadcasters? The idea seems potentially at odds with Knight's determination to encourage news innovation, not to mention foundations' reluctance to invest in profit-making ventures. But Knight said the door is open.

"In general, we support nonprofit endeavors," said Marc Fest, Knight's vice president of communications. "What we're open to are innovative ideas from wherever." He pointed out that Knight has backed MTV and Village Soup, both for-profit concerns but worthy recipients because of their strong proposals.

In fact, Jan Schaffer, executive director of J-Lab at American University in Washington, said there's nothing new about journalism foundations supporting for-profits. Between 1993 and 2002 Schaffer said she funded 120 pilot projects with mainstream news organizations, many of them profit-seeking, as director of the Pew Center for Civic Journalism.

"So, I would suggest that many news organizations have been open to this idea for, oh, the last 15 years," she said.

Robin Reiter, a Miami adviser to Knight in its new communities grant program, said many foundations aren't willing to go through the hoops required when their money is given to for-profit businesses. An "expenditure responsibility requirement" kicks in that can be costly and time-consuming, she said. But Reiter said newspapers or broadcasters, joining with civic foundations, could easily get around that problem through a partnership.

"Let's say the newspaper brings $100,000 worth of resources to the table for a project, and the foundation brings its own $100,000," she said. As long as no money changed hands, a little creative partnering could end up doubling the newspaper's investment. "A newspaper could, for example, set up its own nonprofit arm," said Reiter.

The Knight program is but one aspect of the new competitive environment that legacy media find themselves confronting across the country. Increasingly, in big metros like Minneapolis as well as smaller ones like Quincy, Ill., online-only news sites, both nonprofits and for-profits, are springing up to compete for news and local ad dollars.

The relationship between these sites and the big news guns in town -- newspapers and broadcast outlets -- is much in flux. At an industry level, there's a push toward collaboration. ASNE is in the process of changing its bylaws to admit the editors of Web-only news organizations. And Schaffer is starting what she calls a "networked journalism" project that will partner five news organizations with five citizen media sites.

But some editors have questions about foundation funding by Knight and others of community online news sites.

Bill Marimow, editor of thePhiladelphia Inquirer, told me that the idea "is troubling to me… All of us in newspapers are struggling to fulfill our public service mandate. Creating competition at a time of flagging revenues and rofits runsis contrary to preserving the core mission."

The involvement of local civic foundations in supporting alternatives to the hometown media is particularly intriguing, partly because legacy media over the year have often been the financial and leadership bedrock of these organizations.

In an e-mail (her full statement is at the end), Hall said she believes newspapers should embrace much of what the new-media grants represent. "Most seem aimed at fulfilling specific unmet needs, rather than displacing existing media, thereby broadening a community's information sources and providing a platform for more local voices," she said. "That is to be applauded and nurtured." She acknowledged that many newspapers have had to trim staffs. At the same time, she said newspapers are innovating in new media forms at a fast pace, and remain dominant information sources in their communities.

At one level, most newspapers seem comfortable with a nonprofit partner. There's been little pushback against the idea of pairing up at a newsgathering level with a nonprofit like Pro-Publica, for example, or the Center for Public Integrity or the Pulitzer Center on Crisis Reporting. The questions become more difficult when the philanthropy is not from a journalism organization.

Hall said many questions would have to be addressed: "Do we lose our independence if we take money from a foundation? What about from individuals? What about from the government? Can an NPR model emerge for local newspapers as profitability erodes? Are all foundations created equal on the independence issue? Is funding from the Knight Foundation different from funding from a foundation with a political agenda or a single-issue agenda? Should we take money from a local foundation we cover?"

Here's the full transcript from ASNE's Charlotte Hall, who is editor of the Orlando Sentinel:

"I think that relations with community foundations probably vary from newspaper to newspaper, so I can't generalize on how a grant would affect those relationships. Generally, newspapers have had two faces in the community: an editorial face that is independent and that works for the public good through its reporting and editorial positions, and a corporate citizen face that fulfills the civic responsibility of an influential business through philanthropy and board service. The relationship of the business side and philanthropies should not affect news coverage.

"As I read through the list of the Knight grants, I was impressed by the range of projects. Most seem aimed at fulfilling specific unmet needs, rather than displacing existing media, thereby broadening a community's information sources and providing a platform for more local voices. That is to be applauded and nurtured. ASNE, in its proposed changes to its membership criteria, recognizes and welcomes the emergence of Web-only news sources.

"Newspapers and their Web sites generally have the largest audience among local news sources, but declining staffs have left some areas under-covered. I would add, however, that editors have made local public service journalism a priority as they've had to make cuts. They also have used their Web sites to deepen public service reporting with databases, documents, video, photo slide shows, crowd-sourcing and interactivity. Because of their large audience and their ability to uncover stories, newspapers remain influential in the public life of their communities.

"The question of whether newspapers should seek and accept foundation funding deserves a lot of discussion. Independence is the basis of journalistic credibility. That's why we separate the business side from the editorial side and why we enforce tough ethics codes. Do we lose our independence if we take money from a foundation? What about from individuals? What about from the government? Can an NPR model emerge for local newspapers as profitability erodes? Are all foundations created equal on the independence issue? Is funding from the Knight Foundation different from funding from a foundation with a political agenda or a single-issue agenda? Should we take money from a local foundation we cover?

"The questions seem endless, yet I believe that a model could emerge for foundations to fund some local reporting at newspapers--investigative reporting or an important local beat, for example. But a new kind of firewall would be needed to assure independent reporting and unencumbered editing. We live in the most exciting--and most scary--time imaginable for media. We need to experiment boldly and guard our values. I think we can do both."

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ping

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http://www.portfolio.com/views/blogs/market-movers/2009/01/21/how-not-to-fix-the-new-york-times
How Not to Fix the New York Times

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ac3Qu8s5.BHE
New York Times Asset Sales Restricted Under Slim Deal

http://www.footnoted.org/buried-treasure/reading-between-the-lines-at-%20the-new-york-times/
Reading between the lines at The New York Times…

[12Gauge687]

If his sign read, “Will write the truth for food,” I might be more inclined to buy the rag.

[MahatmaGandu]

Good idea! It’ll take dwindling foundation money away from libtard organizations like the ACLU and MoveOn and direct it towards dying media just in time for the 2010 elections. I just don’t see a downside here.

[rod1]

“Charlotte Hall, president of the American Society of Newspaper Editors, told me the idea raises multiple questions about how newspapers could solicit philanthropic support and still retain credibility....”

No problemo. The Soros Times and the Buffet Post will be a real hoot to read.

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http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003933341
‘Hartford Courant’ Cuts Last Major League Sports Beat

http://www.spectator.co.uk/print/the-magazine/features/3276176/the-bbc-cant-help-loving-obama-just-as-it-cant-help-encouraging-recession.thtml
The BBC can’t help loving Obama, just as it can’t help encouraging recession

http://www.chicagotribune.com/business/chi-thu-cubsjan22,0,3997737.story
Tribune Co. picks favorite in Chicago Cubs bidding

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http://www.thejakartapost.com/news/2009/01/22/it-okay-take-sides-a-new-journalism-paradigm.html
It is okay to take sides: a new journalism paradigm

http://www.medialifemagazine.com/artman2/publish/Research_25/The_strike_really_hurt_ratings_Not_true.asp
The strike really
hurt ratings. Not true.

http://www.brandrepublic.com/News/875584/Old-media-will-profitable-again-warns-WPPs-Sorrell/
Old media will never be as profitable again, warns WPP’s Sorrell

http://www.minonline.com/news/9725.html
Analysis: Mass Media, Magazine Influence Continue Declines

[Mark was here]

This is just a step towards hitting up the taxpayers as part of the communities cultural affairs, like zoos, symphonies, museums...

[mmichaels1970]

the idea raises multiple questions about how newspapers could solicit philanthropic support and still retain credibility

She assumes they're credible now?

Proud of my wife. The Cleveland PD called the other day with a great offer and my wife told them she doesn't subscribe to liberal rags.

[Ukiapah Heep]

I get pesky calls from the Pee Dee once in a while. I tell 'em I can get all the America hating BS I want for free online.

[Frantzie]

Until conservatives start dropping cable & sat TV then the communists will still control the media. We need to never buy any lib newspapers plus start cancelling TV service.

Newspapers are dead but cable and network TV news are still in control. The only way is to hit them in their pocketbook.

[penelopesire]

The downside is that the news media would not only ideologically tied to the DNC machine..but now OBLIGATED to them. Before..there was at least hope that we could get more conservatives going into journalism to balance things out eventually...but now they would have a financial tie. Bad idea. I say let them all die a slow painful death and keep an eye out for any bail-out money going to them...so that we can raise holy hell if the dems try to bail them out with our money!

LET THEM DIE!!

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http://www.editorandpublisher.com/eandp/columns/shoptalk_display.jsp?vnu_content_id=1003933036
The Missing Watchdogs: How Staff Cuts at Newspapers Hurt Democracy

http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=98926
ABC Entertainment Group Merges TV, Production Units

http://newsosaur.blogspot.com/
Sun-Times: The most jinxed newspaper

http://www.theind.com/content/view/3742/1/
Chain Reaction
Corporate newspaper giant Gannett has ransacked The Daily Advertiser, one of its most lucrative newspapers. And every penny of profit squeezed out of the daily has been wired straight to its Virginia headquarters.

http://www.fitzandjen.com/2009/01/jen-in-light-of-carlos-slims-recent-investment-in-the-new-york-times-co-jp-morgan-analyst-alexia-quadrani-decided-to-take.html
A Leveraged Look at NYT, GCI, MNI

http://www.niemanlab.org/2009/01/the-times-and-mr-slim/
The Times and Mr. Slim

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Doc, you simply MUST dig up that old pic of you standing at the NYT doorway holding the sign, “Will Lie for Food.”

[GOPJ]

Yugo made a really bad car - one no one wanted.

Maybe they'd still be "selling" cars if some nonprofit had covered them with liberal bumper stickers and given them away...

I suspect most newspapers have too much pride to become charity cases - - well, I hope so.

[bert]

This is taken as the third stage of grief. Bargining

The stages are:

1. Denial:
* Example - “I feel fine.”; “This can’t be happening, not to me!”
2. Anger:
* Example - “Why me? It’s not fair!” “NO! NO! How can this happen!”
3. Bargaining:
* Example - “Just let me live to see my children graduate.”; “I’ll do anything, can’t you stretch it out? A few more years.”
4. Depression:
* Example - “I’m so sad, why bother with anything?”; “I’m going to die . . . What’s the point?”
5. Acceptance:
* Example - “It’s going to be OK.”; “I can’t fight it, I may as well prepare for it.”

[MahatmaGandu]

Charitable foundations can give their money to anyone. It would not be bail out money from the government but charitable fund money that is currently being directed to left-leaning causes already. With charitable funds already being slammed by the market downturn their incomes are suffering anyway. Putting their money into keeping the lights on at a failing newspaper is less money for the lefties to use to fund Code Pink & etc.

It can't hurt because the newspapers already belong to the left and if you really think those vermin are going to reach out to us with anything other than a knife I'm sorry to say you're going to be disappointed.

[Desron13]

Hey boneheads! You can shovel all libtard dollars you want into these liberal rags. This wont change the fact that no one is reading their silly tripe anymore by one iota. They can just have the delivery trucks drop the product off at the local paper recycling center. Typical Lib mentality. If something your doing isn’t working its because you just aren’t doing enough of it.