Media – Page 193 – Media Nation

How the IRS is killing nonprofit media

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.

Targeting of the AP is neither new nor illegal. Just outrageous.

A lot of outrage has been generated over the Department of Justice’s secret subpoena of the Associated Press’ phone records, and I share that outrage.

But what the DOJ did was not new and not illegal — it was, rather, the latest example of overreach by an administration that has demonstrated its contempt for the role of a free press in a democratic society. Which, of course, makes the Obama White House no different from (though more zealous than) most of its predecessors.

Erik Wemple of The Washington Post explains by dredging up a similar, if less sweeping, case from years past, and in the process does a good job of showing why it matters. If the press can’t promise sources anonymity, it can’t perform its role as a check on government.

An editorial in The New York Times endorses a long-stalled federal shield law that would provide journalists with greater protections than they now have with regard to protecting confidential sources — a move that President Obama is now pushing for.

But what does Obama care? As the Times points out, such a law probably would have made no difference in the AP scandal, since all the DOJ would have had to do was invoke one of the exceptions built into the bill.

The next time you hear someone say that the DOJ’s actions violated the First Amendment, run the other way. A century’s worth of rulings by the U.S. Supreme Court holds that though the media have an enormous amount of protection under the First Amendment to publish or broadcast, they have no more rights than ordinary citizens when it comes to newsgathering.

Here is the Supreme Court in Branzburg v. Hayes (1972) explaining why it would be impossible to created a protected class of journalists who would enjoy an absolute right to protect their sources:

Liberty of the press is the right of the lonely pamphleteer who uses carbon paper or a mimeograph just as much as of the large metropolitan publisher who utilizes the latest photocomposition methods.

The reason that Eric Holder and company could secretly subpoena the AP’s phone records is because they can do it to anyone. It’s a matter not of the Constitution but of judgment — something the Obama administration has demonstrated very little of on this issue.

AP probe should be a wake-up call for journalists

By Trevor Timm

As part of a new leak investigation, the Justice Department has secretly obtained the call records for 20 phone lines owned by the Associated Press, which could put sources for as many as 100 reporters at risk. The AP called the move a “massive and unprecedented intrusion,” saying they “regard this action by the Department of Justice as a serious interference with AP’s constitutional rights to gather and report the news.”

We agree. It’s time to stop looking at all of these leak investigations and prosecutions as ancillary to press freedom; they are a direct attack on it. This should be an important wake-up call for journalists.

While this incident has brought the Justice Department’s crackdown on leakers to a new extreme, it’s important to remember, this storm has been brewing for a while now. In five years, the Obama administration has prosecuted more leakers under the Espionage Act than all other administrations combined, and virtually all these prosecutions have engulfed journalists in one way or another.

As part of this current investigation, we’ve known the FBI has been data-mining government officials’ phone and email records for months, looking for links to journalists on a systematic scale. The Washington Post reported in January, the FBI is using new, “sophisticated software to identify names, key words and phrases embedded in emails and other communications, including text messages, which could lead them to suspects.”

According to the Post, “The FBI also looks at officials’ phone records — who called whom, when, for how long.” Anytime the FBI found a government official has contact with the unknown number of “particular” journalists, FBI agents were “confronting” officials with this information.

A similar leak investigation to the one that has engulfed the AP is aimed at New York Times sources for its investigation into secret U.S. cyberattacks. The government refused to comment if the Justice Department has gone to similar extremes with The New York Times’ phone lines.

Regardless, as The New York Times reported on its front page in August of last year, these leak investigations are “casting a distinct chill over press coverage of national security issues as agencies decline routine interview requests and refuse to provide background briefings.” The Huffington Post recently interviewed several of the nation’s most prominent national security journalists, all of whom confirmed it’s a perilous time for journalists who are reporting on what the government considers secret.

The Justice Department does not deny this. When asked about the Obama administration’s crackdown on leakers last June, a senior Justice Department (DOJ) official told longtime national security reporter Shane Harris that the DOJ is “out for scalps.” Harris’ DOJ source also “made it clear that reporters who talked to sources about classified information were putting themselves at risk of prosecution.”

And it may be about to get worse.

In another leak case, New York Times reporter James Risen has been fighting a subpoena from Obama’s Justice Department for years. The Obama DOJ is after his sources for a chapter in his book “State of War.” (You can read the incredible chapter at issue, about a spectacularly bungled CIA mission that allegedly handed nuclear bomb blueprints to Iran, here.)

The Obama administration inherited the case from the Bush administration, and despite the fact that the district court judge sided with Risen during both the grand jury and trial, DOJ has continued to appeal the case. Last May, the DOJ argued before the Fourth Circuit that reporters’ privilege does not exist at all for national security reporters. Disturbingly, the Justice Department said that Risen protecting his sources was “analogous” to refusing to testify about receiving drugs from a confidential source.

The Fourth Circuit Appeals Court decision could come down any day now, and it will undoubtedly be the most important press freedom decision in a decade or more.

And while it has curiously receded from national headlines, the Justice Department also still has an active grand jury investigation open against WikiLeaks for publishing classified information. If such a prosecution succeeds, it will be open season on media organizations that publish stories that touch on information the government considers secret, putting virtually every national security journalist at risk of prosecution.

In fact, the House of Representatives held a hearing just last July in which multiple congressmen openly discussed throwing New York Times journalists in jail for publishing classified information about secret cyberattacks and CIA drone strikes. By staying quiet about the WikiLeaks grand jury, journalists only increase this risk.

The White House press secretary was quick to state that the administration is “not involved in decisions” in the AP investigation and heard about it from the media. White House officials are under investigation for this particular leak as well, so that’s no surprise. But one should not forget: the White House created this war-on-leaks monster. Congress has only encouraged its expansion, instead of investigating the wrongdoing that many of the leaks exposed.

And now, it’s out of control.

Trevor Timm is co-founder and executive director of the Freedom of the Press Foundation. Republished by permission.

The missing context in the IRS scandal

Here’s an assignment for some enterprising journalist: Try to find out how many conservative 501(c)(3) and 501(c)(4) groups were formed in, say, 2009 through 2011 and compare that to the number of liberal groups formed during the same time period.

Only then can we judge how outrageous it was for some IRS employees to be searching for terms like “tea party” and “patriot” in attempting to crack down on tax-code abuse.

You drop your line where the fish are, you know?

Breaking news, social media and verification

Josh Stearns of Free Press and Catherine Cloutier of Boston.com

Last Saturday I had the privilege of moderating a panel on “Covering Chaos,” a look at how nontraditional journalism and social media responded to the Boston Marathon bombings and the aftermath.

Panelists were three people who covered the events as they were unfolding, Andrew Ba Tran of Boston.com and Northeastern University students Taylor Dobbs and Brian D’Amico; Boston.com producer Catherine Cloutier; and Josh Stearns of Free Press, an expert on social media and verification.

It was a terrific event. Everyone, including me, learned a lot about best practices in reporting from the scene, in aggregation and curation, and in verifying the accuracy of on-the-ground reports in real time.

Cambridge Community Television, which organized the event, has posted a Storify by Cambridge media activist Saul Tannenbaum on our panel and the three that preceded it, which dealt with alternative online media in Cambridge, legal issues and new forms of digital storytelling.

In addition, Stearns, the hardest-working man in media reform, has published his keynote address as well as a blog post on misinformation and verification following the marathon bombings.

Photo (cc) by Christian Herold and published under a Creative Commons license. Some rights reserved.

Cohasset selectmen back off

The Cohasset selectmen have backed away from their plan to subpoena The Patriot Ledger of Quincy and its sister paper The Cohasset Mariner in an attempt to find out whether town employees have been posting offensive anonymous comments to the two papers’ websites, according to a report by Patrick Ronan.

The papers are part of the GateHouse Media chain.

Still at issue is a former selectman who’s pursuing a libel action against two anonymous commenters, and who subpoenaed the Mariner in an attempt to find out who they are. According to an article published on the Ledger and Mariner websites, the papers turned over the information as requested.

According to Ronan’s story, town officials have decided to wait and see if the libel suit reveals that any of the comments in question were posted from town computers.

Cohasset selectmen seek to muzzle commenters

Something very strange is going on in Cohasset, according to The Patriot Ledger of Quincy and an affiliated weekly, The Cohasset Mariner.

The Cohasset selectmen, according to reports in both papers, are engaged in a snipe hunt to ferret out the identities of anonymous commenters to the Ledger and Mariner websites. The papers are owned by GateHouse Media, a national chain that owns about 100 newspapers in Eastern Massachusetts and publishes websites under the name Wicked Local.

Town officials have gone so far as to consider a subpoena to the two papers to force them to turn over the IP (Internet Protocol) addresses of some particularly unhinged commenters to see if they are using government-owned computers at town hall. (Each computer on the Internet has a unique IP address.) Such activities, the selectmen say, would violate town policy.

Last Thursday, the selectmen canceled a meeting when their lawyer was unable to produce a draft subpoena for their consideration. But, in a parallel action, the Mariner has reportedly received a subpoena from a former selectman who has filed a libel suit against two anonymous commenters. In a sidebar to a Ledger story that also appears on the Mariner site, there is this:

GateHouse Media has complied with the subpoenas to the Cohasset Mariner and released the IP address and emails related to those screen names in accordance with its privacy policy.

There’s a lot going on here, but let me offer a few observations.

• The selectmen are way out of line in even thinking they can demand that the newspapers turn over identifying information so that they can punish their own employees. I hope GateHouse officials will stand firm if they receive a subpoena demanding such information.

• The libel suit is an entirely different matter. Under federal law, website operators are not liable for content posted by third parties such as anonymous commenters, according to the Digital Media Law Project. But the commenters themselves are not immune from libel suits or other actions, and website operators may be compelled to help those bringing suit find out who they are. It doesn’t sound like GateHouse did anything out of line in turning over IP and email addresses, though I would certainly like to know more.

• The First Amendment is one thing; best practices are another. Though GateHouse has every right to let anonymous commenters vent in public, such behavior has an effect on the newspapers’ brand and reputation. GateHouse should put an end to anonymous comments (as Media Nation did several years ago) — or, at the very least, screen all comments for taste, offensiveness and libelous content before allowing them to be posted.

Finally, though GateHouse reporter Erin Dale seems to be doing a good job of covering her employer’s own story, this cries out for some outside scrutiny. I’d love to see The Boston Globe dig into this.

The Knight Foundation’s curious funding decisions

Among the odder aspects of Howard Kurtz’s very bad week (as reported by Michael Calderone of the Huffington Post) is the revelation that Daily Download, the thoroughly mediocre (at best) website with which Kurtz is more or less associated, received a $230,000 grant from the Knight Foundation, which funds innovative journalism projects. Here’s a Knight press release from March 2012.

Now, it’s certainly true that not all of Knight’s investments are going to work out, and that some of them will prove embarrassing. But it’s notable that Tom Stites, founder of the Banyan Project, a well-publicized effort to create a replicable new business model for community journalism based on co-op ownership, reports that Banyan’s Knight News Challenge applications have been turned down twice. (Banyan’s pilot site, Haverhill Matters, is due to be unveiled later this year.)

In February, Knight apologized for paying a $20,000 speaking fee to Jonah Lehrer, a so-called journalist who was hoping to revive his once-celebrated career after he’d been exposed as a plagiarist and a fabricator.

Knight does a lot of great work, so I hope Knight officials will step forward and explain their decision to fund Daily Download.

As for Kurtz, he enjoyed a long and impressive career before running into some serious bouts of carelessness during the past few years. I hope he’s able to bounce back. Earlier this evening he tweeted: “I just want to thank those who have posted or sent kind words and supportive comments in recent days. It means a lot when times are tough.”

Photo (cc) by David Shankbone and published under a Creative Commons license. Some rights reserved.

Haverhill Matters moves closer to reality

The Bradford Bridge, looking north toward downtown Haverhill

This article appeared earlier at the Nieman Journalism Lab.

It was as incongruous a situation as I could imagine. Friday, April 19, was one of the most gripping news days we have ever experienced in Massachusetts. Dzhokhar Tsarnaev, the younger of the suspected marathon bombers, was in hiding. Boston and several other cities were under voluntary lockdown. And that morning I was driving north, toward Haverhill, on my way to a meeting where earnest community activists were making plans to revive local journalism.

While all hell was breaking loose elsewhere, the Haverhill Matters Organizing Committee met in a sunny conference room at Haverhill Community Television. The committee’s goal is to launch a cooperatively owned news site to be called Haverhill Matters sometime this year.

It’s been a long time coming. Tom Stites, a veteran journalist who’s worked at the New York Times and the Chicago Tribune, came up with the idea of local news co-ops a few years ago. He founded the Banyan Project to serve as an umbrella; Haverhill Matters will be the pilot. I wrote about his plans for the Nieman Journalism Lab last year, as well as in the epilogue to my forthcoming book about online community journalism, “The Wired City.” The launch date for Haverhill Matters has slipped a few times, but at this point it looks like 2013 will be the year.

The hour-long meeting was taken up with fairly mundane planning issues, but I could see that the site is moving toward reality. Currently the committee is at the first of a four-stage process, outlined in considerable detail on the Banyan website. The organizers envision everything from crowdsourced reporting projects to quotidian coverage of local news. A board of directors will hire two full-time employees: an executive director and an editor. The site will also make ample use of freelancers, neighborhood bloggers, and college and high school interns.

After some back-and-forth about liability issues, the committee members agreed to sign on with the Cooperative Development Institute to handle Haverhill Matters’ finances. There were charts about finances and timetables, and about how the yet-to-be-hired editor should spend the 520 hours he or she will be working each quarter.

“We’re really at a go/no-go moment, and I think we’ve decided to go,” said Tim Coco, president and general manager of WHAV, an online radio station based in Haverhill.

“Well, we want to,” replied local activist Mike LaBonte, co-chair of the organizing committee.

Coco professed some skepticism about what he was hearing but supported the idea of moving ahead. “It’s not feasible,” he said, “but that’s never stopped me before.”

The Banyan Project is aimed at serving what Stites calls “news deserts” — less-than-affluent communities that tend to be shunned by high-end advertisers and, thus, by the news organizations that rely on those advertisers. Haverhill, a city of 61,000 on the Merrimack River at the New Hampshire line, meets that definition. The Massachusetts Institute for a New Commonwealth, or MassINC, lists Haverhill as one of 11 “Gateway Cities” — former manufacturing centers that are struggling with a lack of resources and economic investment.

Yet in other respects, Haverhill is an unlikely news desert. Though the days when two daily newspapers battled it out are long gone, the Eagle-Tribune, based in nearby North Andover, continues to publish a daily Haverhill edition. The Eagle-Tribune also publishes a weekly paper, the Haverhill Gazette, that offers local staples such as school news, feel-good features and announcements. Add in Haverhill Community Television, with its robust lineup of local programming, and WHAV, and it would appear that more than a few flowers are sprouting in this particular desert.

The real target, then, is the unaccountability of local journalism controlled by out-of-state corporations. For years now, the Eagle-Tribune’s owner, Community Newspaper Holdings Inc. (CNHI) of Montgomery, Ala., has been decimating its properties. Neither the Eagle-Tribune nor the Gazette has an office in Haverhill anymore. Thus Haverhill Matters represents an attempt by local residents to tell their own story.

In reporting “The Wired City,” I learned that there are problems with both the for-profit and nonprofit models of independent online local journalism. The owners of the for-profits — including sites like The Batavian, CT News Junkie, and Baristanet — have to spend so much time selling advertising that it limits the amount of journalism they can afford to do.

Nonprofits such as the New Haven Independent, the main focus of my book, are more robust. But not every community is willing to support such a venture, and the Internet Revenue Service has made it increasingly difficult for such sites to attain nonprofit 501(c)(3) status. Moreover, nonprofits are prohibited from endorsing political candidates, traditionally an important activity for local news organizations.

A cooperatively owned news site — analogies include credit unions and food co-ops — would occupy a space somewhere between the two models, and would not be banned from publishing endorsements. Tom Stites is currently soliciting contributions for Haverhill Matters’ launch. Once the site is up and running, he hopes to attract 1,500 members at $36 a year, bringing in $54,000, as well as advertising and grant money. A chart Mike LaBonte displayed showed an initial $45,000 expenditure, with the site reaching break-even in two and a half years.

Unlike one-off projects such as the New Haven Independent or The Batavian, the intention behind Haverhill Matters is that it be replicable. Stites hopes the Banyan Project will be able to offer a “co-op in a box” to communities looking to start their own cooperatively owned news sites. But first he has to prove the model can work. Which is why Haverhill Matters matters.

Photo (cc) 2013 by Dan Kennedy. Some rights reserved.

Panel to discuss citizen media and the marathon

This Saturday, May 4, I’ll be moderating a panel at the main branch of the Cambridge Public Library on how nontraditional journalism and citizen media responded to the Boston Marathon bombings. Titled “Covering Chaos,” the panel will be held from 1:30 to 2:30 p.m. and will include:

Josh Stearns, journalism and public media campaign director for the media-reform organization Free Press and an expert on verification and trust with regard to citizen media.
Taylor Dobbs, a journalism student at Northeastern University whose coverage at the finish line and again in Watertown was featured on the website Medium. Dobbs wrote about what he learned in a recent guest post for Media Nation.
Catherine Cloutier, a producer for Boston.com, the Boston Globe’s free website, which was a crucial source of information in the aftermath of the bombings. Cloutier was among those posting to the site’s live blog.

The panel will close an event being sponsored by Cambridge Community Television and other organizations called “Filling the News Gap in Cambridge and Beyond: Citizen Journalism and Grassroots Media.” It begins at 9 a.m. and looks like it should be well worth your time. More information here.