The Colorado Sun is going nonprofit. The five-year-old digital news organization, launched by journalists who’d left The Denver Post following round after round of cuts by the paper’s hedge-fund owner, Alden Global Capital, had operated as a rare for-profit exception in the universe of local news startups. Now the Sun is joining its tax-exempt peers.
“Whether I agree with it or not, whether I even like it or not, the reality is that many individuals, many institutions and philanthropic groups, have concluded that journalism should be nonprofit,” editor Larry Ryckman said in a phone interview on Monday. “I have my own thoughts on that, but that is reality.”
The Buell Media Center, home of The Colorado Sun. Photo (cc) 2021 by Dan Kennedy.
Of all the alarms that have been sounded over the decline of local news, perhaps none was louder than the one in Denver, Colorado, five years ago this month. In what became known as the Denver Rebellion, editorial page editor Chuck Plunkett wrote a front-page editorial calling for the Post’s hedge-fund owner, Alden Global Capital, to sell the paper to local interests. Plunkett wrote:
We call for action. Consider this editorial and this Sunday’s Perspective offerings a plea to Alden — owner of Digital First Media, one of the largest newspaper chains in the country — to rethink its business strategy across all its newspaper holdings. Consider this also a signal to our community and civic leaders that they ought to demand better. Denver deserves a newspaper owner who supports its newsroom. If Alden isn’t willing to do good journalism here, it should sell The Post to owners who will.
Unfortunately, Alden did not sell; after all, there were still profits to be squeezed out. At one time, the Post employed a newsroom of about 300 people, and its competitor, the Rocky Mountain News, had another 300. But the Rocky was shut down by a different chain owner years ago, and by the time that Plunkett wrote his manifesto, Alden was in the process of downsizing the Post again, from about 100 journalists to 60.
But journalism in Denver survived. Earlier this month, Plunkett wrote an opinion piece for The Colorado Sun looking back on the past five years. The Sun grew out of the Post: 10 senior people left after the rebellion and launched a digital-only news project that has grown to a couple of dozen people. This time around, Plunkett, now at the University of Colorado in Boulder, took a more optimistic view:
So much new talent has bubbled up around us as a result it’s difficult to keep track. The legislature’s got more reporters than you shake a stick at. Who could deny the excellence and the ambition of presenting and covering Denver’s recent mayoral debates?…
Hey, it’s heartening to see media companies banging around like they want to fight. Think of how bad off we’d be if we didn’t have such energy.
What’s happened in Colorado led Ellen Clegg and me to include it in our book, “What Works in Community News,” which will be published by Beacon Press early next year. I visited the Denver area in September 2021 and learned that the metro region is being well served. The Sun, the Post, Colorado Public Radio and another startup, The Denver Gazette, were all doing good work.
The problem, though, was in those places that weren’t within commuting distance of Denver. The news deserts that exist in the rural parts of the state were why The Colorado Sun was trying to provide some statewide coverage rather than merely focusing on Denver. So it was heartening to see that several papers whose owners wanted to move on have been acquired by a small chain. The indefatigable Corey Hutchins of Colorado College reports that O’Rourke Media Group, based in Arizona, is the new owner of Colorado papers in Salida, Buena Vista, Leadville, Park County and Fairplay.
“I feel like I’m taking over newsrooms that are well resourced,” the chain’s CEO, Jim O’Rourke, told Hutchins. “I like that, because that gives us an opportunity to come in and work with this team on things that we can do differently moving forward — things that we could do to help. And it’s better starting from a position like this versus going into a totally distressed situation where the previous company gutted the place.”
The news desert problem is real. But what’s happened in Denver and, now, in rural Colorado demonstrates what I’ve seen since I started reporting on the local news crisis some 15 years ago: Where there is failure there is also opportunity.
Media activists in Colorado have stepped up once again to save a newspaper from either closing or falling into the clutches of corporate chain ownership. Colorado media watcher Corey Hutchins, a journalism professor at Colorado College, reports that Sentinel Colorado, a free weekly with a daily website in Aurora, will be acquired by a temporary holding company.
It’s a complicated transaction that involves some of the same players that pulled off the purchase of Colorado Community Media’s weekly and monthly newspapers last year. CCM is now being managed by The Colorado Sun, a digital start-up in Denver that was given an ownership stake.
Aurora, Colorado’s third-largest city, has a population of about 380,000 and is approximately a dozen miles east of Denver.
As with the CCM transaction, the Colorado News Collaborative has helped with the Aurora deal, although the Sun is not involved this time around. Laura Frank, the collaborative’s executive director, was quoted by The Sentinel as saying:
Journalism leaders and community members in Colorado are finding ways to change the narrative and the trajectory of failing news outlets. Together, we are making journalism stronger, which makes democracy stronger. I’m thrilled COLab can help support that work.
Earlier this year, the nonprofit Corporation for New Jersey Local Media acquired 14 weekly newspapers serving about 50 cities and towns. The papers will be run as a public benefit corporation — a for-profit arrangement that is geared toward serving the public rather than rewarding its owners.
That’s also the business model for the Sun and CCM, and it’s been emerging at news organizations across the country as a third-way alternative to traditional for-profit ownership and nonprofit status.
No guest this week as co-hosts Ellen Clegg and I run down a number of news stories, including a major deal in New Jersey: the nonprofit Corporation for New Jersey Local Media (CNJLM) acquired 14 weekly newspapers serving some 50 municipalities. The papers were owned by the New Jersey Hills Media Group.
The deal is similar to one announced last year when Colorado Community Media sold its 24 weekly and monthly newspapers in a complex deal involving several nonprofit organizations. The difference is that management of the Colorado papers was turned over to The Colorado Sun, a digital start-up that was awarded an ownership share and could eventually become the majority owner. In New Jersey, the sellers, Liz and Steve Parker, will remain in charge.
Ellen unpacks the story behind a glaring omission in the award-winning documentary film, “Storm Lake,” and we both try to grapple with the blockchain and how Web3 might affect local newsrooms.
The deal is similar to one announced last year when Colorado Community Media sold its 24 weekly and monthly newspapers in a complex deal involving several nonprofit organizations. The difference is that management of the Colorado papers was turned over to The Colorado Sun, a digital start-up that was awarded an ownership share and could eventually become the majority owner. In New Jersey, the sellers, Liz and Steve Parker, will remain in charge.
As with the Colorado deal, terms of the Hills Media transaction were not disclosed. According to an announcement on the CNJLM website, the organization sought to raise $500,000 to purchase the Hills papers, though it’s not clear whether that covered all or just part of the cost.
According to an email announcement by Amanda Richardson, executive director of CJNLM, the Hills Media papers will be reorganized as a “societal benefits corporation.” A New Jersey guide to benefit corporations explains it this way: “While traditional corporations have the single duty to maximize profit, benefit corporations have the increased purpose of considering society and the environment in addition to seeking a profit.”
Public benefit corporations are increasingly being set up as the ownership vehicle of choice for news outlets since they do not operate under some of the restrictions that traditional nonprofits must contend with, such as a prohibition against endorsing political candidates or specific pieces of legislation on their editorial pages. The Sun, The Philadelphia Inquirer and, closer to home, The Provincetown Independent are all public benefit corporations. All three also have nonprofit affiliations that allow them to raise tax-exempt money for in-depth reporting projects.
Confusingly, Hills Media’s own story claims that the company will become a nonprofit and incorrectly describes the Inquirer, Colorado Community Media and the Tampa Bay Times as nonprofits. The Inquirer and the Times are for-profit newspapers owned by nonprofit organizations.
The Corporation for New Jersey Local Media, part of the Community Foundation of New Jersey, is “dedicated to preserving and expanding the quality and accessibility of professional journalism that is vital to informed civic engagement and the practice of democracy.”
Hills Media serves Morris, Somerset, Essex and Hunterdon counties, which are directly east of Newark.
Correction: I must have read Hills Media’s story too quickly. In fact, it does state that the newspapers will be reorganized as a societal benefits corporation.
You sometimes hear that nonprofit status is not a solution to the local news crisis. After all, just because a media outlet is a nonprofit doesn’t mean it’s exempt from having to bring in revenue and balance its books.
True. But nonprofit ownership also means local ownership invested in the community. Which is why the latest news from The Salt Lake Tribune, the largest daily paper in Utah, is so heartening.
According to a recent update from Lauren Gustus, the executive editor, the Tribune is growing. The newsroom, she writes, is 23% larger than it was a year ago, with the paper adding a three-member Innovation Lab reporting team and beefing up its reporting, digital and editing operations. After cutting back to just one print edition each week, it’s adding a second. The Tribune is also taking care of its employees, she says, providing much-needed equipment to its photographers as well as a 401(k) match and parental leave.
“We celebrate 150 years this year and we are healthy,” she writes. “We are sustainable in 2021, and we have no plans to return to a previously precarious position.”
The Tribune was acquired from the hedge fund Alden Global Capital in 2016 by Paul Huntsman, part of a politically connected Utah family. As I wrote for GBH News in 2019, Huntsman, like many civic-minded publishers before him, discovered that owning a newspaper isn’t as easy as he might have imagined. He was forced to cut the staff in order to make ends meet before hitting on the idea of transforming the Tribune into the first large nonprofit newspaper in the country.
Nonprofit ownership makes it easier to raise tax-deductible grant money from foundations, and it transforms the subscription model into a membership model. Done right, the audience feels invested in the news organization in a way that it generally doesn’t with a for-profit newspaper.
One disadvantage is that nonprofit news organizations are constrained from some traditional newspaper functions, including having a robust editorial page that endorses political candidates. On the latest episode of our podcast, “What Works,” Storm Lake Times editor Art Cullen told Ellen Clegg and me that’s why he and his older brother, John, the publisher, have kept their paper for-profit.
What the Cullens have done instead is set up a nonprofit organization called the Western Iowa Journalism Foundation that can receive tax-deductible donations to support the Times and several other papers. It’s a model similar to that used by news outlets as large as The Philadelphia Inquirer and as small as The Colorado Sun and The Provincetown Independent.
The local news crisis will not be solved by a single model, and there’s plenty of room for nonprofits, for-profits and hybrids. What’s taking place in Salt Lake is important, and is sure to be watched by other news executives.
“The Tribune will welcome more journalists in 2022,” writes Gustus, “because you’ve told us many times over that this is what you want and because if we are not holding those in public office to account, there are few others who will.”
It looks like Chicago’s number-two newspaper is about to get a huge boost. Given that the dominant daily, the Chicago Tribune, is being gutted by its new hedge-fund owner, the move can’t come soon enough.
According to media writer Rob Feder, the Chicago Sun-Times and public radio station WBEZ are seeking to merge their operations. The Sun-Times, a tabloid that bills itself as “The Hardest-Working Paper in America,” has long labored in the shadow of the Tribune. But with the Tribune now controlled by Alden Global Capital, the Sun-Times/WBEZ combination could quickly emerge as the news source of record in our third-largest city.
Sun-Times reporter Jon Seidel writes that the newspaper would become a subsidiary of Chicago Public Media. What’s unclear — and maybe those taking part in the talks haven’t figured it out themselves yet — is whether the Sun-Times would become a nonprofit or if it would remain a for-profit entity owned by a nonprofit. It matters for a variety of reasons, not least of which is that nonprofits are not allowed to endorse political candidates.
I couldn’t immediately find any numbers on how big the two entities’ reporting staffs are. But it’s significant that there would reportedly be no job reductions if the two operations are combined. WBEZ is one of public radio’s powerhouses, and the Sun-Times has maintained decent paid circulation — nearly 107,000 on Sundays and almost 100,000 on weekdays, most of it print, according to numbers it filed with the Alliance for Audited Media a year and a half ago. (The Tribune clocked in at 527,000 on Sundays and 256,000 on weekdays.)
According to a news release quoted by the Sun-Times, the combined outlet “would invest in journalism through expanded capacity to better serve Chicago; expand and engage with diverse audiences throughout the region, and expand digital capabilities to deliver a compelling digital experience across platforms and reach audiences where they are.”
Public radio can play a vitally important role in keeping regional news coverage alive in markets where legacy newspapers are shrinking. In Denver, for instance, Colorado Public Radio, combined with Denverite, which it acquired several years ago, now has what is likely the largest newsroom in the state — about 65 staff members, according to executive editor Kevin Dale. The Denver Post, cut drastically under Alden ownership, employs about 60 journalists, and The Colorado Sun, a well-regarded digital start-up, has 22, according to editor Larry Ryckman.
In Boston, public radio stations WBUR and GBH have probably the most robust news operations in the region after The Boston Globe. Unlike the Tribune, the Globe is independently owned and growing. But if that were to change, the public radio stations would be well-positioned to fill in the gap.
The WBEZ/Sun-Times announcement is the best journalism news to come out of Chicago since Alden acquired the Tribune earlier this year. Let’s hope it becomes a model for what might take place elsewhere.
One of the best things about visiting local news organizations is getting a chance to accompany reporters on stories. I still look back fondly on my trips to New Haven about a dozen years ago, when I shadowed the staff of the New Haven Independent. And then there was the unforgettable experience of covering the first news conference on COVID-19 in Mendocino County, California, on March 5, 2020, while I was reporting on The Mendocino Voice.
I was in Denver last week learning about The Colorado Sun, an online-only project founded three years ago by a group of journalists who left The Denver Post after multiple rounds of cuts by its hedge-fund owner, Alden Global Capital. And on Monday, I struck gold.
I was sitting in on the morning news meeting when we learned that students had staged a walkout at Denver North High School to call for the removal of school board member Tay Anderson, who was censured last week for inappropriate interactions with an underage student. (Anderson has said he cut off all contact as soon as he learned she was 16.) I took a Lyft to Denver North, where hundreds of students had gathered in Denver Park.
Already on the scene were two young journalists — the Sun’s education reporter, Erica Breunlin, and photographer Olivia Sun (“no nepotism involved,” she quipped), who began a stint at the Sun through the Report for America program several months ago.
It was a wild scene. Students were chanting “Hey hey, ho ho! Tay Anderson has got to go!” And “Resign!” After gathering on the steps of the school, they headed off for Denver Public Schools headquarters, some two and a half miles away. The chants grew more profane, with “Fuck That Pedo” proving to be the most popular.
Breunlin and Sun, meanwhile, were hard at work. Breunlin had made the mistake of wearing red pumps, but that didn’t stop her from interviewing students and then running to keep up with the crowd. At one point she asked a student, “Do you feel unsafe?” “Yes.” “Why do you feel unsafe?” Pause. “It’s not right.”
Report for America photographer Olivia Sun
Breunlin was careful to point out to the students that the evidence against Anderson was ambiguous, but that didn’t stop them from demanding action. At one point, the students started chanting “Lock him up!”
I knew Breunlin was tweeting. But while I was scanning my phone outside the DPS building, I was surprised to see that the Sun had posted a full story. When had she written that? She later explained to me that it was pieced together by her editor, Lance Benzel, from her tweets and from phone calls.
“He was great, because he was telling me to really just focus on the scenery and talking to people and tweeting and really capturing that color,” she told me later. “And then he was embedding my tweets into the story, pulling information from my tweets to put in the story, so it was like I was doing the reporting. He was kind of finessing the story, so it really was a good team effort.”
Sun told me she had sought a position through Report for America, which places young journalists with newsrooms across the country, because she was burning out on her job as a photographer with the Des Moines Register.
“The institutional knowledge I gained from working somewhere like that [the Register] is really irreplaceable,” she said. “I really got to learn from old guard veteran journalists. But essentially I wanted to see what else was out there and how I could personally put my skills to a more streamlined use in just illustrating local issues.”
Ironically, both Breunlin and Sun said that what had attracted them to the Sun was the chance to work on in-depth stories rather than breaking news — and here they were, covering a breaking story. But that’s not typical of what they, or the Sun, do.
Finally, here is their story. It was updated later in the day, so it isn’t quite as urgent as the first version. But you’ll get the idea. Nor was theirs the only strong account. I thought The Denver Post, in conjunction with Chalkbeat, did a nice job as well.
A version of this post was part of last week’s Media Nation member newsletter. To become a member for just $5 a month, please click here.
It’s something I’ve seen over and over in tracking the state of local news for the past dozen years. Despite the very real challenges community journalism faces from technological and cultural change, news organizations that are not burdened by corporate chain ownership can continue to serve as vital, financially sustainable operations.
A new report by Tony Baranowski, director of local media for Times Citizen Communications in Iowa Falls, Iowa, makes the point. While he was a fellow at the West Virginia University Reed College of Media and the West Virginia Press Association’s NewStart Program, he studied several newspapers in the Upper Midwest in depth and surveyed more than 50 small newspaper publishers across the country.
What he found was that, despite the narrative that local newspapers are dying, these independent papers were keeping their heads above water. Baranowski writes:
The strongest community news outlets are locally owned and managed by families or individuals with local ties that stretch back decades. That’s not an easy circumstance to replicate for a would-be publisher looking to buy or launch a news organization in a rural town, but it’s not a prerequisite, either. In fact, the common denominator is less longevity than fostering community spirit and pride within both staff-generated content and advertising in a traditional newspaper’s pages.
Among the people interviewed in Baranowski’s report is Jim Slonoff, the co-founder and publisher of The Hinsdalean, a free paper launched in suburban Chicago in 2006. I wrote about The Hinsdalean a couple of months ago to highlight its practice of signing up members of the community to write essays on a variety of topics. Although running unpaid columns is hardly new territory for local newspapers, The Hinsdalean actively recruits writers and limits them to a two-year term, ensuring a steady stream of fresh voices.
Like many of the people Baranowski spoke with, Slonoff said The Hinsdalean’s emphasis remains on print rather than digital. Slonoff said:
That’s the thing I don’t get about newspapers in general, because so many of them put so much money and resources into their websites with no return. We took the 180 degrees approach and said our money is coming from display advertising and real estate advertising. Why would we not focus on that? Facebook doesn’t bring us any money, Twitter and Instagram don’t. There’s nothing I get out of it that I know of, except we’re there. And we get a lot of likes and things and get a lot of this and comments and that feels good.
That might seem like a retrograde approach, but it’s one I’ve heard from a number of publishers who have to figure out how to break even.
The Provincetown Independent actually charges more for digital subscriptions than for a print-plus-digital combination, telling readers that “if we were to go online only, the savings in not having to print and mail the paper would not be anywhere near enough to make up for the loss of print advertising revenue.”
Last week I interviewed Jerry and Ann Healey, who sold their Colorado Community Media newspaper group earlier this year to The Colorado Sun, a start-up digital news organization, in a deal put together by the National Trust for Local News. They told me that, in many cases, when they offered a package combining digital and print, their advertisers weren’t interested — they wanted to be seen in the print newspaper. “In the community newspaper space, print is still a viable thing,” Jerry Healey said, “and the advertisers know that too.”
Then there’s Kris O’Leary of Central Wisconsin Newspapers, who told Baranowski that her readership includes Amish and Mennonite communities. Not much digital potential there.
Another of Baranowski’s findings is that newspapers with offices in the communities they cover tend to be healthier than those that have consolidated operations far from the people they serve.
If this sounds like Baranowski is recommending a back-to-the-future approach, it may be because he’s surveying local journalism in the rural heartland. A digital-first approach makes sense in affluent urban and suburban areas where readers can be persuaded to sign up for online-only subscriptions.
But in some parts of the country, technological advances have not changed the media all that much over the past several decades. It is in such places that journalism can do well by following a model that would have been familiar to our grandparents — independently owned newspapers, rooted in the community and supported by local businesses.
Recently I wrote about “News Matters,” a documentary that tracks Alden Global Capital’s evisceration of The Denver Post and the rise of The Colorado Sun. Unfortunately, my post came just as Rocky Mountain PBS was about to take it down from its website.
No guest this week as co-hosts Ellen Clegg and I run down a number of news stories, including a major deal in New Jersey: the nonprofit 
