Update: We got postponed to clear time for ongoing coverage of the Connecticut train crash.
I’ll be doing my first major media event for “The Wired City” on Monday, May 20, at 9 a.m., when I’ll be a guest on Connecticut Public Radio’s “Where We Live,” hosted by John Dankosky.
Joining me will be Paul Bass, the founder and editor of the New Haven Independent, a nonprofit online-only news site that is the main subject of my book.
If you’re interested, you can listen live online or grab a podcast.
This article appeared earlier at The Huffington Post.
Outrage over the Internal Revenue Service’s targeting of Tea Party and other right-wing groups continues to boil — yet a potentially more consequential IRS practice has scarcely gained any attention.
Over the past few years the IRS has virtually stopped approving 501(c)(3) status for nonprofit news organizations. Given the well-documented decline of traditional for-profit newspapers, nonprofit journalism can be a vital alternative, especially at the local and regional levels. But even when applications for 501(c)(3) status aren’t rejected outright, they are stacking up, unacted upon, for months and even years.
A recent Council on Foundations report titled “The IRS and Nonprofit Media: Toward Creating a More Informed Public” put it this way:
There is significant anecdotal evidence that the IRS has delayed the approval of nonprofit media, potentially slowed the development of those already created, and harmed communities by leaving them without essential coverage, due to the application of archaic standards.
Starting in the middle part of the last decade, a number of nonprofit entrepreneurs launched community websites that were built roughly on the public radio model, funded by grants, sponsorships and contributions from readers. Gaining 501(c)(3) status allowed donors to make make those contributions tax-exempt.
In researching “The Wired City,” my book on the New Haven Independent and other community news sites, I was struck that nearly all of the best-known nonprofits — the Independent, Voice of San Diego, MinnPost, the Texas Tribune, the Connecticut Mirror and others — had been started during the same time period, from 2004 to 2009.
“There was an initial bubble of nonprofit start-ups, but you haven’t seen that great wave spreading across the country,” Andrew Donohue, the then-editor of Voice of San Diego, told me in 2011. He saw that as potentially a good thing — a sign that journalists were trying a variety of models, for-profit as well as nonprofit. Since then, however, it has become increasingly apparent that the IRS is a principal agent in stifling that great wave.
Consider some of the consequences of the IRS’s actions and inaction:
• In February 2012, the Chicago News Cooperative went under, in part because of its inability to obtain 501(c)(3) status from the IRS, as Ryan Chittum reported in the Columbia Journalism Review.
• Because the IRS does not consider journalism to be among the educational activities covered by the 501(c)(3) rules, the agency told the Investigative News Network to remove the word “journalism” from its articles of incorporation. The INN complied and won approval, according to an article about the Council on Foundations report by Justin Ellis of the Nieman Journalism Lab.
• In a similar vein, according to the report, the Johnston Insider of Rhode Island received a message from the IRS telling it: “While most of your articles may be of interest to individuals residing in your community, they are not educational.” Because of that and other reasons, editor Elizabeth Wayland-Seal announced that she was suspending publication.
What adds to the absurdity of the IRS’s stance, as the report notes, is that we are already accustomed to relying on nonprofit, tax-exempt media for much of our news and information — not just from community news sites but from long-established outlets such as NPR and local public radio stations, “The PBS NewsHour” and magazines such as Mother Jones, Consumer Reports and National Geographic.
Here is how the media-reform organization Free Press, which has assembled a useful repository of information about the IRS and nonprofit news, describes the problem:
Nonprofit journalism is not a silver bullet for the future of journalism. But fostering a more diverse media system is. If the IRS decides against allowing nonprofit status for newsrooms, it will essentially be arguing that all journalism should be done for profit. The problem is, the market has shown it will not support the full extent and diversity of news and perspectives we need.
Four years ago, U.S. Sen. Ben Cardin, a Maryland Democrat, proposed a bill that would have allowed newspapers to become nonprofit organizations. At the time it struck me as superfluous. Now it appears that it warrants another look — not just for newspapers, but for other forms of media as well.
Absent legislation, President Obama should appoint a new IRS commissioner who understands that providing quality local journalism is indeed the sort of educational activity that should be covered by the provisions of 501(c)(3).
At a historical moment when it has become increasingly difficult for the traditional media to provide the information we need to govern ourselves in a democracy, the IRS shouldn’t stand in the way of promising alternatives.
John Paton
Nicole Narea and Clifton Wang of the Yale Daily News have written a preview of “The Wired City,” which is primarily about the life and times of the New Haven Independent, an innovative online-only nonprofit news site.
At a moment when online paywalls have become one of the biggest issues debated within the news business, it’s interesting that both the Independent and its newspaper competitor, the New Haven Register, have decided to keep their sites free. Here’s what Independent founder and editor Paul Bass tells the Yale Daily News:
We need to cut down on the information apartheid. If we are going to construct a paywall, we may as well not publish. We believe in community empowerment through journalism.
Of course the Register, as a for-profit entity, has a different challenge: selling enough online advertising to justify its decision to continue giving away its news. It’s a philosophy that John Paton, chief executive of the Register’s corporate parent, the Journal Register Co., describes as “Digital First.”
Journal Register is currently in bankruptcy for the second time in four years, but is expected to re-emerge later this spring. No doubt it’s going to be painful — among other things, employees have been told they will have to reapply for their jobs, and it is far from clear how many will be rehired. The Newspaper Guild-Communications Workers of America recently had some tough words for Journal Register, reports Bill Shea of Crain’s Detroit Business.
As Joshua Benton of the Nieman Journal Lab observed last September, the re-emergence from bankruptcy will also represent the best chance for Paton — one of the most closely watched executives in the newspaper business — to prove that a digital orientation can turn around a legacy newspaper chain with a lower-revenue, lower-cost approach. Interesting times ahead.
Photo found at Newspaper Death Watch.
New Haven Register reporter Luther Turmelle has written a very kind preview of my forthcoming book, “The Wired City: Reimagining Journalism and Civic Life in the Post-Newspaper Age.” The book is largely about the New Haven Independent, a nonprofit online-only news organization founded in part to compete with the Register for city and neighborhood news.
A couple of friends today sent me a link to Mike Fourcher’s ruminations on what he learned running the Center Square Journal, a hyperlocal news site in Chicago that he started three years ago. He offers 21 lessons, and they’re not without value. But what stands out from my reading of them is that he simply faced too much competition for advertisers and readers. And that, in turn, was a consequence of his making an unfortunate choice of location.
The sites I profile in “The Wired City” — mainly the New Haven Independent, but also The Batavian, CT News Junkie, the Connecticut Mirror, Voice of San Diego and Baristanet — have very different business models, but they all have one thing in common: a niche that was being woefully underserved before they came along to serve it.
New Haven illustrates my point. Paul Bass launched the Independent in 2005 to provide city and neighborhood news that was largely being ignored by everyone else — including the region’s daily paper, the New Haven Register, which tended to focus on the suburbs around New Haven. Eight years later, the Independent and the Register still serve different audiences. They compete for certain types of city news, but mainly they stay out of each other’s way. And because the Independent is a nonprofit, they’re not competing for scarce advertising dollars.
The Batavian is very different from the Independent, but it has similar advantages. The for-profit site was launched in Batavia, N.Y., by the GateHouse chain in 2008 as a pilot project. In 2009 it was acquired by Howard Owens after he was let go as GateHouse’s director of digital media.
The Batavian was up against two established news organizations: The Daily News and WBTA Radio. Owens formed a partnership with the radio station and competed fiercely with The Daily, as the locals call it. Unlike Fourcher’s experience in Chicago, though, there really wasn’t anyone else.
Like Paul Bass in New Haven, Owens carved out a niche by going more local than his competition — one county for The Batavian versus three for The Daily. It turned out that the business community was vibrant enough to support a daily newspaper, a radio station and a community website. But if there were, say, a half-dozen websites all trying to turn a profit, it’s not likely any of them would be able to make money.
Fourcher, a refugee from the robo-news operation Journatic, is now trying something interesting. He’s called a community meeting for Jan. 31 to see if his readers like the Center Square Journal enough to help him continue it in some form, or possibly to take it over in its entirety.
What’s evident from his 21 lessons, though, is that he fell short of making the Journal a vital part of his readers’ lives — possibly because there were already too many other voices competing for people’s time, attention and dollars.
Over the course of a career that spans three decades, New Haven Independent editor Paul Bass has interviewed more than his share of people in trouble with the police. Until Sunday, though, Bass had not had a chance to sit down with someone who was avoiding arrest and contemplating turning himself in.
The interview came about because of a call Bass received last Friday from someone close to the unfortunately named William Outlaw IV, who’d been in hiding and avoiding arrest after speeding away from a police officer the previous week. Would Bass like to interview Outlaw at an undisclosed location so that he could give his side of the story before handing himself over for arrest?
Bass replied that he would, but as an observant Jew he couldn’t do the interview until sometime on Sunday. They met at a location outside of New Haven, where Outlaw — as you will see — defended himself as a “good guy” and twice referred to the officer who arrested him, Robert Hayden, as an “asshole.” As it turns out, Hayden is also a former Independent “Cop of the Week,” a series that highlights good works by city police officers.
Bass told me that he and Outlaw met alone, but that he considered the situation to be far less dangerous than many others in which he’s found himself. Although Outlaw was in big trouble because he was on probation, he had not been accused of violence, and Bass knew both his father — a prominent community activist — and his lawyer. [See correction below.]
“I can’t explain why I wasn’t nervous going over, but I wasn’t,” Bass said. “I wasn’t nervous about my own safety at all.” Bass said he also felt confident that Outlaw would not commit any crimes and would turn himself in as promised the next day. “It was based on the tenor of our interview,” he said.
On Monday, Bass reconnected with Outlaw and, accompanied by Outlaw’s family, proceeded to court. Bass video-recorded the scene, including Outlaw’s being frisked and handcuffed — which he later edited out at the request of Outlaw’s lawyer, Michael Jefferson.
“‘You know, that’s a very humiliating image for African-American men,’” he quoted Jefferson as telling him, adding: “I hadn’t thought about that.”
Bass posted his story, along with the video interview, only after Outlaw was in custody. He added that the reaction he’s gotten from the police department has been positive. Still, it would have been interesting if the police had somehow learned between Sunday and Monday that Bass knew where Outlaw was hiding.
Correction: Outlaw has been charged with assault, a violent offense, stemming from a contention by police that he tried to run over officers with his car before leaving the scene.
Matt DeRienzo
This article also appears at the Nieman Journalism Lab.
In the spring of 2009, when I began researching what would become a book about online community journalism, I couldn’t have found a better foil than the New Haven Register.
Owned by the bankrupt Journal Register Co. (JRC), the daily was moribund and mediocre, its disconnect from the community symbolized by its location: a gigantic converted shirt factory, partly surrounded by barbed wire, on the outskirts of the city next to Interstate 95. The contrast with the New Haven Independent, a nonprofit, online-only startup that is the focus of my book, couldn’t have been more stark.
Three years later, when I turned in my manuscript, things had changed considerably. JRC was out of bankruptcy. Its chief executive, John Paton, was winning industry plaudits for his “Digital First” strategy of accelerating the transformation from print to online. The New Haven Register had a new, young, progressive editor, Matt DeRienzo. And JRC had outsourced printing to the Hartford Courant as DeRienzo had begun preparing to move his staff to a yet-to-be-determined location in the downtown. New Haven, a poor, largely minority city of about 130,000 people, was suddenly home to two of the country’s most closely watched experiments in reinventing local journalism. (My book on all of this, “The Wired City,” will be published by the University of Massachusetts in 2013.)
So I was shocked on Wednesday when Jim Romenesko reported that JRC was once again entering bankruptcy. As Paton explained it on his blog, the idea is to get the company out from under the legacy costs that it took on when the newspaper business was a lot larger and more profitable than it is today: debt; long-term leases on buildings it no longer needs; and pension obligations. The strategy is to take advantage of Chapter 11 in order to reduce JRC’s cost structure and re-emerge from bankruptcy in a matter of months.
The pension piece has been the subject of considerable consternation on Twitter and elsewhere, as it raised the specter of out-of-state investors (JRC is headquartered in suburban Philadelphia) taking away from loyal employees what is rightfully theirs. DeRienzo countered by pointing out that pensions are guaranteed by the federal government. “No one’s retirement is at risk,” he wrote.
There’s no question that guaranteed pensions are largely a thing of the past in the private sector, with defined benefits having given way some years ago to the era of the 401(k). And JRC is not the only newspaper company with pension problems. In 2009, the New York Times Co. nearly reached a deal to sell the Boston Globe that would reportedly have brought in less cash ($35 million) than the Globe’s future pension obligations ($59 million), which prospective buyers were asked to assume.
In other words, if you were going to start any private enterprise from scratch, you would almost certainly not include pensions as one of the benefits that you would offer your employees. And I have little trouble believing that JRC’s pension system is weighing the company down.
On the other hand, it seems to me that JRC may soon face a “Where’s the beef?” moment. Paton’s tireless advocacy of Digital First has gotten a lot of attention and praise — deservedly so. At some point, though, Paton has to deliver real improvements both to the journalism of JRC’s news organizations and to the bottom line.
I think Paton and DeRienzo have the right values and the right motives. I’m rooting for them. Fundamentally, though, we are talking about trying to effect change from the top down. Corporate chain ownership has been a disaster for community journalism. I’d rather my paper be owned by a good chain than a bad one. But neither is an adequate substitute for local ownership — and yes, I realize that’s no panacea, either.
As the Nieman Journalism Lab’s Joshua Benton points out, this may be Paton’s last, best chance to remake JRC exactly along the lines that he envisions — truly a new start without the dead weight of his predecessors’ poor decisions dragging him down. I’m eager to see what he’ll do with that opportunity.
I’m heading to New Haven in a little bit for my final visit to the New Haven Independent before my book deadline at the end of June. Founder and editor Paul Bass and I are meeting at the Brū Café, where we first met almost exactly three years ago (see interview, above). It’s been a long journey, and it’s not over yet. But this feels like a huge milestone.
Howard Owens
I’ve long been an admirer of Howard Owens’ real-names policy for online commenters. It’s one of the reasons I adopted it for Media Nation a couple of years ago. So I was intrigued when he tweeted this morning, “When you manage your comment community correctly, you can run a poll on gay marriage and have the convo remain civil.”
I clicked through to his community-news site, The Batavian, in rural western New York. As I write this, 1,501 people had responded to his survey question: “Do you support gay marriage?” About 45 percent said “yes” and 55 percent said “no.” And Owens was right: I couldn’t find a non-civil comment among them.
What I found was an engaged and engaging discussion (with a bit too much esoterica on states’ rights for my taste), with Owens himself making occasional contributions — an important part of keeping the online conversation on track. Given the volatile nature of the topic, I asked him if he pre-screened the comments or had deleted any after they were posted. His answer: no, and no. Impressive.
I’m not entirely opposed to allowing anonymous comments. At the New Haven Independent, for instance, editor and founder Paul Bass argues that teachers, police officers and other stakeholders wouldn’t dare express their thoughts if they had to reveal their identities. The Independent is often held up as a model of community engagement.
Yet the Independent runs off the rails from time to time, and earlier this year Bass had to tighten up his guidelines — including requiring real-name registration, though anonymous commenting is still allowed.
I can’t say it enough: News organizations have to find effective ways to engage with their users. Just because it isn’t easy doesn’t mean it’s not worth doing. (You may thank me later for the triple negative.)
Posted in Media
Tagged Batavian, comments, gay marriage, Howard Owens, New Haven Independent, Paul Bass, same-sex marriage
"Dan Kennedy ... exercises the blogger's imperative to bloviate beyond his expertise."
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Media Nation is published under a Creative Commons Attribution- Noncommercial- Share Alike 3.0 United States License. Some rights reserved. You must attribute this work to Media Nation (with link). For more information, please contact Dan Kennedy at da {dot} kennedy {at} neu {dot} edu.
Winner of a 2011 CBS Boston "Most Valuable Blogger" Award.
When bad reviews lead to worse comments
Negative reviews leading to death threats and rape threats? That’s what they’re claiming at the film site Rotten Tomatoes, where comments to reviews of the new Batman movie, “The Dark Knight Rises,” have been turned off, according to the Los Angeles Times.
The hateful rants show how difficult it can be to keep online conversations on track. I’m not a movie buff, and I rarely visit Rotten Tomatoes, so I don’t have an opinion regarding the way comments are monitored there. But editor-in-chief Matt Atchity told the Times that he had seven people moderating “Dark Knight” comments before he finally pulled the plug. Click here for Atchity’s message to readers.
Atchity also said his next step may be to integrate the commenting system with Facebook, which is probably a good idea. A lot of news sites have found that Facebook comments tend to be more civil, which no doubt is related to the mindset people are in — they’re checking in with their friends, they’re sharing pictures of their cats. And, of course, they are usually using their real names, complete with pictures of themselves.
Earlier this year, the New Haven Independent, a nonprofit news site widely admired for the way it uses comments to enhance its coverage, ran into a crisis that led it to shut down commenting for two weeks. When it reopened, it was with new, stricter policies. (See this and this.)
Engaging in a conversation with your users is necessary and useful. If they don’t feel like they’re part of your site, they’ll go somewhere else. But doing it right is not easy.
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Posted in Media
Tagged Batman, comments, Dark Knight Rises, Facebook, New Haven Independent, Rotten Tomatoes