Nonprofit experts tell us what board members and funders in local news need to know

• https://niemanreports.org/richard-tofel-on-propublicas-mission-driven-approach-to-investigative-reporting/
• https://s3.amazonaws.com/propublica/assets/about/LFA_ProPublica-white-paper_2.1.pdf
• https://www.lenfestinstitute.org/solutions-resources/lessons-from-elements-of-nonprofit-news-management-richard-j-tofel-book/
• https://www.poynter.org/ethics-trust/2019/a-mission-statement-is-an-important-element-of-any-news-operation-whats-yours/

Below is a 1,200-word summary produced by Claude, an artificial-intelligence tool from Anthropic that is now partnering with Northeastern. Here’s how we did it: We uploaded the audio to Otter, an automated transcription tool that uses AI, then spent a couple of hours cleaning it up in order to ensure the best result. Finally, we told Claude, “Write a 1200-word summary of the following transcript.” We read the summary carefully, and it strikes us as no worse than a B-plus/A-minus synopsis.

Ethics in Nonprofit News: A Summary of Key Insights (via Claude AI)

The webinar “Ethics of Nonprofit News: What Board Members and Donors Need to Know” featured insights from Josh Stearns (Democracy Fund), Kara Meyberg Guzman (Santa Cruz Local), and Joe Kriesberg (CommonWealth Beacon), moderated by Dan Kennedy and Ellen Clegg of Northeastern University. The discussion explored ethical challenges facing nonprofit news organizations, particularly focusing on hyperlocal startups.

Ethical Guidelines for Funders and Board Members

Josh Stearns opened by outlining key ethical considerations. For funders, he emphasized three principles: (1) “do no harm,” as even well-intended funders can inadvertently damage a growing news startup; (2) taking proactive steps to ensure journalistic independence, such as Democracy Fund’s contractual clause prohibiting discussions of editorial content with grantees; and (3) providing general operating grants whenever possible to maximize flexibility for news organizations.

For board members, Stearns suggested the principle of “nose in, fingers out” – remaining attentive to organizational health without meddling in operations. He acknowledged that this differs for working boards where volunteers actively help run the organization. He stressed the importance of good governance practices and fundraising support from board members, even in small ways.

Nonprofit Status: Business Model vs. Values

Kara Meyberg Guzman emphasized that 501(c)(3) status is “not a business model” or “a signal of your values and ethics.” She explained that Santa Cruz Local began as a for-profit because it was quicker to establish, despite always operating with a public service mission primarily funded by individual donors. The transition to nonprofit status facilitated major gifts but shifted decision-making power to a volunteer board and required formalizing ethical policies, including donor transparency guidelines and prohibitions on election endorsements.

Mission as North Star

Joe Kriesberg highlighted the importance of mission as the “North Star” for nonprofit news organizations. He warned about “vendor-ism,” where nonprofits begin to view themselves primarily as vendors serving donors’ objectives rather than their own mission. He described the tension between “demand-side” work (responding to community needs) and “supply-side” work (following funders’ priorities).

Kriesberg emphasized that while written policies are important, organizational culture is paramount: “Culture eats policy for lunch.” He noted that CommonWealth Beacon had strong cultural norms around journalistic independence before formalizing written policies.

Board Composition and Conflicts of Interest

The panelists discussed what level of community involvement might present conflicts for board members. Meyberg Guzman explained that Santa Cruz Local prohibits elected officials from serving on their board and requires board members to refrain from public partisan activity on local issues they cover. Kriesberg noted that CommonWealth Beacon doesn’t restrict politically active individuals but aims for political balance on their board.

Stearns emphasized considering community expectations and trust: “Different people and different communities operate with different sets of expectations.” He suggested that transparency measures may help manage potential conflicts, allowing trusted individuals to serve while maintaining public confidence.

Board Role in News Coverage

Regarding board involvement in content, Kriesberg stated that CommonWealth Beacon’s board members don’t report but may contribute op-eds and story ideas. Meyberg Guzman described how Tiny News Collective’s board initially functioned as a working board doing substantial volunteer work before transitioning to a governance role as the organization matured.

Stearns noted that the key question is whether board members can fulfill their governance and fiduciary responsibilities while also contributing content. Some boards successfully balance these roles, while others struggle to separate volunteer work from governance functions.

Donor Relationships and Independence

The panelists emphasized that donor relationships develop gradually, allowing organizations to assess alignment before accepting funding. Meyberg Guzman described educating potential donors about journalistic boundaries during the relationship-building process, sometimes deciding not to pursue funding when alignment isn’t clear.

Kriesberg discussed creating buffers between donors and the newsroom, with the publisher handling most donor interactions. He shared an example of choosing not to forward a donor’s praise to the editor to avoid any appearance of influence.

Stearns reinforced the importance of donor education, particularly as more funders enter the journalism space. He suggested having upfront conversations about journalistic independence and including editorial clauses in grant agreements. When conflicts arise, he recommended appealing to donors’ own interest in maintaining the credibility that attracted them initially.

A participant highlighted that pushy donor influence damages staff morale and institutional reputation, creating hidden costs beyond any financial benefit.

Articulating Journalism’s Value

Kriesberg discussed the challenge of articulating journalism’s outcomes to potential funders. While most nonprofits can promise specific impacts, journalism’s benefits are more conceptual – informing public participation and holding power accountable. He described CommonWealth Beacon’s theory of change: “Better policy will result with more information.”

Governance Challenges

Stearns identified two common governance failures: inadequate financial oversight due to board members unprepared for their fiduciary responsibility, and boards failing to address toxic leadership. He noted that strong boards can guide organizations through crises that might otherwise be insurmountable.

Meyberg Guzman credited Santa Cruz Local’s engaged board with pushing her to think boldly, helping develop a strategic plan, and nearly doubling revenue.

Revenue Diversity and Ethics

The panel stressed funding diversity as essential for both the perception and reality of independence. Kriesberg noted that larger boards similarly dilute any single member’s influence.

Regarding events and sponsorships, Meyberg Guzman described Santa Cruz Local’s approach of separating their events team from editorial staff, with reporters uninvolved in event planning or sponsorship sales. She emphasized their metric for success: doubling event revenue over expenses to support their journalism.

Press Forward Initiative

Stearns, who serves on the Press Forward management committee, explained that this funder initiative aims to influence the funding community by expanding the number of funders supporting journalism and directing resources to underserved areas. Press Forward has prioritized smaller newsrooms that struggle to access philanthropic resources and advocates for journalistic independence, equity, public funding, and infrastructure support for independent media.

Balancing Speed and Accuracy

Kriesberg acknowledged the daily tension between quick stories and deeper investigative work, especially with small teams. He also highlighted that public perception of media bias extends beyond funding conflicts, representing a broader challenge to the sector.

Meyberg Guzman suggested that the antidote begins with listening and responding to community needs, while Stearns emphasized rooting journalism in people’s lived experiences, praising Santa Cruz Local’s approach of providing “journalism as a service” addressing daily concerns.

Throughout the discussion, the panelists emphasized transparency, independence, mission focus, and community accountability as foundational values for ethical nonprofit journalism. They recognized that while funding structures create unique considerations, maintaining public trust requires both strong policies and a culture of journalistic integrity.