Institute for Nonprofit News

We need a renewal of civic life — and that has to start by supporting local journalism

Following Donald Trump’s victory Tuesday night, I’ve seen calls on social media to support independent news organizations like ProPublica and The Guardian rather than traditional outlets. It’s a good idea, though I value the work done by mainstream journalism as well.

But let me suggest a different approach to funding media: using your subscription money or tax-deductible donations to support news at the local level. I’ve been writing about the local news crisis for a decade and a half, and during that time I’ve come to believe that one of the reasons we’re so polarized is that low-quality national news has moved in to fill the vacuum created by the decline of community journalism.

Civic life depends on reliable news and information. Without it, you have people showing up at school committee meetings to complain about phony, Fox News-driven issues like transgender sports and critical race theory rather than test scores and the cost of funding a new teachers’ contract.

Academic studies have shown that a lack of local news leads to fewer people running for local office, lower voter turnout, measurable increases in polarization and what my research partner, Ellen Clegg, and I like to call the “corruption tax” — that is, lenders demanding a higher rate of return when municipalities in news deserts seek to borrow money for such worthy causes as a new middle school or fire station. The lenders, it seems, want a premium if no one is going to keep an eye on how their money is being spent.

Rebuilding civic life is a way of lowering temperatures and encouraging cooperation. When people learn they can work with their neighbors to solve local problems even if they hold different views about national politics, that enables them to see those neighbors as fully rounded human beings rather than as partisan Republicans or Democrats.

The news desert problem is serious and getting worse. According to the latest State of Local News report from Northwestern University’s Medill School, some 3,200 print newspapers have disappeared since 2005. Most of them were weekly papers that provided exactly the sort of coverage needed to build and maintain a sense of community.

At the same time, though, hundreds of independent news projects have launched in recent years. Most but not all are digital-only; many are nonprofit, some are for-profit.

As it happens, this is the time of year when it makes the most sense to support local news, especially nonprofits. Every year, the Institute for Nonprofit News, through its NewsMatch program, provides funds to nonprofits to match some of what they are able to raise within their communities. This year’s campaign began Nov. 1. As INN explains:

Eighteen national and regional funders have pledged $7.5 million to NewsMatch, the largest grassroots fundraising campaign to support nonprofit news in the U.S. Since 2017, participating news organizations in the INN Network have leveraged $31 million in NewsMatch funding to help generate nearly $300 million in support from their communities. All of these newsrooms have met INN’s membership standards for financial transparency, editorial independence, and original public service reporting. Not every nonprofit news outlet meets those standards and is able to become an INN member.

Ellen and I wrote our book, “What Works in Community News,” to profile independent local and regional news organizations that are finding ways to serve the public despite the ongoing financial challenge of paying for journalism. We also talk with news entrepreneurs and thought leaders on our podcast, “What Works: The Future of Local News.” Our hope is that the people and projects we highlight will inspire others to fill the information gap in their own communities.

Philanthropy will remain an important source of funding for some time to come. We should assume that long-stalled federal efforts to provide tax credits for local news aren’t suddenly going to start moving forward during the Age of Trump II. Efforts in states that include New York, New Jersey, Illinois and California are worthwhile but limited.

Ultimately the news desert problem will be solved, or not, without government assistance. If your community has an independent news outlet, please support it. And if it doesn’t, I suggest you look into what it would take to get involved in starting one.

Sophie Culpepper tells us about covering the local-news beat for Nieman Lab

On the new “What Works” podcast, Ellen Clegg and I talk with Sophie Culpepper, a staff writer at Nieman Lab who focuses on covering local news. She co-founded The Lexington Observer, a digital local news site covering Lexington, a town of 35,000 outside Boston. For two years, she was the nonprofit news outlet’s only full-time journalist. She covered public schools, local government, economic development and public safety, among other subjects.

Ellen has a Quick Take on Sewell Chan, the former editor of The Texas Tribune who has just started his new job as executive editor of Columbia Journalism Review. Ellen interviewed Sewell in Austin for the Texas chapter in our book, “What Works in Community News.”

I discusss the recent Nonprofit News Awards bestowed by the Institute for Nonprofit News. Three of the awards went to projects that have been featured on the “What Works” podcast. The Service to Nonprofit News Award went to Andy and Dee Hall, the retired founders of Wisconsin Watch, who were guests on this podcast last December. VTDigger won a community champion award. And Mississippi Today won an explanatory journalism award.

In addition, an INNovator Award for a sold-out event featuring live stories from the stage went to Brookline.News, a digital nonprofit founded by Ellen.

You can listen to our conversation here and access an AI-generated transcript. You can also subscribe through your favorite podcast app.

Why paywalls for nonprofit news, though rare, are not going away anytime soon

The Salt Lake Temple in Salt Lake City, part of the Church of Jesus Christ of Latter-day Saints. The city is served by The Salt Lake Tribune, the first nonprofit legacy newspaper in the U.S. Photo (cc) 2006 by Ken Lund.

Should nonprofit news organizations place their journalism behind a paywall?

There is considerable precedent that suggests they should not. Public television and radio are free, though they depend on grant money and donations from, you know, viewers (and listeners) like you. There’s also an educational mission and significant tax advantages that come with nonprofit status, and you could argue that they should make their journalism free in return for those benefits.

The Institute for Nonprofit News, for instance, begins its mission statement this way:

Nonprofit news is created for, supported by, and committed to the communities it serves. Through reporters who have deep community ties and topical expertise, nonprofit news elevates untold stories, exposes wrongdoing, and provides the facts we need to make informed decisions. And because most of this content is available without paywalls or subscription fees, nonprofit news makes essential information available to everyone — not just those who can afford it.

That falls short of an explicit statement of disapproval when it comes to nonprofits and paywalls, but it comes kind of close.

Yet Ellen Clegg and I found in our reporting for “What Works in Community News” that a few nonprofit news outlets do charge for their journalism, though most do not. Among those with paywalls are two digital-only sites: the Daily Memphian, which is part of our book, and The Baltimore Banner.

Both of these employ large staffs and aim to serve as complete replacements for the shrunken legacy papers they compete against. Such projects are expensive, and their leaders can hardly be faulted for concluding they need to charge for their journalism just as most for-profits do. Both find ways to make their journalism affordable for folks who may not be as well-heeled as their regular subscribers.

Another nonprofit with a paywall is The Salt Lake Tribune, the first legacy daily newspaper to embrace that model. Writing at Nieman Lab, Sarah Scire reports that the Tribune would like to end its dependence on a paywall at some point and is even now making much of its journalism free. She quotes from the Tribune’s annual report:

We’ve raised $340,000 and counting to fully remove the paywall on all of our election coverage ahead of the critical 2024 races. We’re not there yet from an income point of view to make our website free, but we hope to grow our donor base and income to the point that we’ll be able to open everything up to everyone.

Yet she also observes that even though the Tribune is growing, it remains dependent on paid subscriptions. Last year, for instance, subscribers were responsible for $5 million of the Tribune’s $15 million in revenues. Much of the rest comes from donors and advertising.

The bottom line is that even nonprofit news outlets need to bring in enough money to fulfill their mission. In the end, readers don’t really care whether their local news is owned by a nonprofit for a for-profit; Scire reports that only about a third of residents even know that the paper is nonprofit. What they want is a news source that’s comprehensive and reliable.

Talking about local news at BU

I’ll be taking part in a webinar on “Saving Local News” on Wednesday, Feb. 14, from 3 to 4 p.m., sponsored by the Boston University Alumni Association. (That’s not why I got invited, but I actually did earn my master’s in American history from BU way back in 1983.)

The other panelists: Sarabeth Berman, CEO of the American Journalism Project; Karen Rundlet, CEO of the Institute for Nonprofit News; and Daniela Melo, a BU faculty member and co-founder of The New Bedford Light. Moderating will be former Boston Globe editor Brian McGrory, chair of BU’s Journalism Department. You can register here.

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Why large foundations need to step up for smaller local news projects

Postcard of Athens, Ohio, via Wikimedia Commons

In the course of our reporting for “What Works in Community News,” Ellen Clegg and I were confronted with a reality that cuts against our usual optimism: that though news startups across the country are helping to fill the gap created by the decline of legacy newspapers, the new media landscape is unevenly distributed.

Large regional and statewide nonprofits like The Texas Tribune and NJ Spotlight News are doing reasonably well, though the Tribune has recently hit a few bumps and Spotlight has never been a fundraising behemoth. Smaller projects serving affluent suburbs, like a number of startups in Eastern Massachusetts, are doing well. But there are few independent news outlets serving low-population rural areas and urban communities of color, and those that do exist are often overlooked by the larger philanthropic organizations.

Corinne Colbert writes about that reality for a newsletter called Local News Blues, which I’ll admit I hadn’t heard of until my friend and teacher Howard Owens of The Batavian pointed me to it a few days ago. Colbert is cofounder and editor-in-chief of the Athens County Independent, a nonprofit digital startup that in southeastern Ohio. Late last week she wrote a commentary headlined “Does big philanthropy really care about our smaller news markets?” Now, you know the rule about question headlines: the answer is almost always “no.” She observes:

Nearly 60% of foundation grants go to national and global nonprofit outlets, according to the Institute for Nonprofit News. Local outlets — which INN defines as those serving audiences at the county, city or town level or having a specific focus — represent almost one-fourth of nonprofit news jobs, but we get less than 20% of foundation funding. That gap represents millions and millions of dollars.

Recently the Houston Landing, a well-funded nonprofit with strong backing from the American Journalism Project, imploded when the publisher fired the highly regarded editor and the top investigative reporter without offering any logical explanation. The Landing may recover, but there’s been a serious lack of transparency. Meanwhile, projects that Ellen and I have written about such as MLK50 in Memphis and the New Haven Independent have never been able to attract much in the way of national funding, even though both are performing vitally important work.

Nonprofits are bringing news and information to communities in ways that for-profits often no longer can. But it’s time for major foundations — including Press Forward, a $500 million effort comprising 22 philanthropies — to bring renewed efforts to helping not just large, sexy projects but more quotidian efforts as well. Fortunately there are signs that Press Forward gets it.

“Small markets … present business challenges that corporations are often unwilling to face,” writes Colbert, “and those challenges make launching or growing a local news operation especially difficult. National funders could ease those burdens, but first they have to acknowledge our existence — and our importance.”

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Karen Rundlet to succeed Sue Cross as CEO of the Institute for Nonprofit News

The Institute for Nonprofit News, or INN, has a new CEO. Karen Rundlet will succeed Sue Cross, who announced earlier this year that she was leaving the post. Rundlet, who is currently senior director of the Journalism Program at the Knight Foundation, has worked with grant recipients such as City Bureau/ Documenters in Chicago, INN’s NewsMatch program, Sahan Journal (based in Minneapolis and one of the projects that Ellen Clegg and I report on in our book “What Works in Community News”), Solutions Journalism Network and Military Veterans in Journalism.

Rundlet has also worked as a journalist and manager at the Miami Herald as well as the public radio program “Marketplace.”

INN is an important player in the world of local news startups. NewsMatch, which allows community journalism organizations to leverage local donations with matching national money, has been transformative. The organization also acts as a fiscal sponsor for nonprofits that have not yet obtained 501(c)(3) federal tax status — donors can make a tax-deductible gift that is administered by INN and is then passed along to the local media outlet. Its model code of ethics is used by local news organizations across the country; see, for instance, the “Ethics & Practices Policies” at The New Bedford Light.

According to the announcement of Rundlet’s appointment, more than 425 news organizations now make up the INN Network, supporting more than 5,000 people who work in nonprofit news in North America.

“Karen is uniquely positioned as a visionary, passionate and experienced journalist and philanthropist to propel the nonprofit news movement,” Marcia Parker, the chair of INN’s board of directors, said in a statement. “As a leader of our field, she already is driving the national advances to redesign news media that is inclusive for communities of color and can bring trusted information to everyone.”

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How NJ Spotlight News is leveraging its journalism to enhance its bottom line

NJ PBS in Newark, New Jersey, the headquarters of NJ Spotlight News. Photo (cc) 2022 by Dan Kennedy.

It’s NewsMatch time — that annual holiday tradition when local and regional news nonprofits ramp up their fundraising efforts so that donations can be matched by the Institute for Nonprofit News.

This morning I received an email with the intriguing subject line “This was our favorite story of 2023!” from NJ Spotlight News, one of the projects that Ellen Clegg and I are profiling in our forthcoming book, “What Works in Local News.” The top of the email reads:

Dear Dan,

Last week we kicked off our year-end campaign, and we couldn’t be more excited to share how your support made a big impact in 2023, plus give a glimpse into the exciting plans we have for 2024.

As a reader of NJ Spotlight News, you know you can depend on our nonprofit journalism day in and day out. But do you know what goes into producing just one story, from start to finish? Take, for example, our story last week on youth voting, which investigated college age voters in New Jersey and their attitudes towards politics. Here’s a look, by the numbers, of what went into it:

- phone calls made: 6
- internal meetings at NJ Spotlight News to plan/discuss: 3
- days it took to produce: 10
- people involved in its production: 7
- cups of coffee consumed: 8
- emails sent about it: 31
- hours of transcription logged: 2 hours

We put everything we’ve got into all of our stories because we value in-depth, comprehensive reporting. These New Jersey stories need to be told and we believe sourcing our information from a variety of voices and perspectives is the best way to do so. And because of our hard work, we’re making a real difference in our New Jersey community.

The email did not link to the story, but here it is. Reported by Hannah Gross, Spotlight’s education and child welfare reporter, the story takes a deep dive into whether college students would vote in the following week’s state and local elections — a tough sell for younger voters given that there’s no presidential race on the ballot.

“People don’t realize how much change actually comes from the local standpoint,” Rowan University student Jamie Ivan told Gross. “Everyone thinks: ‘Oh, it’s not presidential, it doesn’t matter.’ Presidential elections matter a lot, but so do local ones. It affects your everyday life. It directly impacts you.”

Acting on a hunch, I checked to see if Gross is affiliated with Report for America, a project that places young journalists at local news organizations across the country. Indeed she is. Report for America is also featured in “What Works in Community News” — we interviewed RFA corps members at news projects such as The Colorado Sun and the New Haven Independent, and we also include a featured conversation with RFA co-founder Steven Waldman, edited down from our podcast interview with him.

NJ Spotlight News began life about a decade ago as a website covering statewide public policy and politics. Several years ago it merged with NJ PBS, and today comprises the original website plus a daily half-hour newscast, with a lot of cross-pollination between both sides of the enterprise. It’s an example of how public broadcasters can step up and help solve the local and regional news crisis — one of a number of business models that Ellen and I explored in our reporting on how to build a sustainable future for community journalism.

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The nonprofit Worcester Guardian says it will be independent from the local Chamber

Worcester City Hall. Photo (cc) 2015 by Dan Kennedy.

The governance structure of The Worcester Guardian, a fledgling nonprofit begun by the Worcester Regional Chamber of Commerce, is starting to become clearer. A message by consultant Dave Nordman, the former executive editor of the city’s daily, the Telegram & Gazette, says that the Guardian will have an independent board of directors in addition to a community advisory board. The Chamber has committed $50,000 to the launch, but Nordman says the intention is for the Guardian to be a fully independent news organization.

The aim, Nordman told me by email, is “total separation.” He said that Chamber president and CEO Tim Murray will probably have one of nine seats on the board but will not serve as the chair. “The board’s main responsibility,” Nordman said, “will be to rally the community.” The announcement of an editor, he added, is imminent.

The original announcement raised questions about how closely the Chamber would be tied to the Guardian. Nordman’s assurances makes it more likely that the Guardian will be accepted by the Institute for Nonprofit News, or INN, which would be a crucial step for credibility and fundraising. The Guardian’s inaugural governing documents also tracked too closely with the INN’s policies as well as the mission statement of The New Bedford Light, a large nonprofit, as reported by Bill Shaner of the newsletter Worcester Sucks and I Love It. Nordman, though, is a pro, and his involvement suggests that the Guardian will get off to a strong start. (Nordman is also a colleague of mine at Northeastern.) Nordman writes in his message at the Guardian’s website:

I believe free, nonprofit, independent news could provide a dynamic new platform to tell the Central Massachusetts story and report on important issues impacting Worcester and the region.

I believe mistakes will be made and lessons will be learned along the way.

I believe nonprofit, for-profit and independent journalism can co-exist. I believe blogs and social media also provide a forum for healthy discourse.

And I believe Murray when he says he will allow the Guardian to tell the story of Worcester independent of the chamber.

The community will be watching.

The Worcester area is not exactly a news desert, although local residents have lamented deep cuts at the Telegram & Gazette under Gannett’s ownership. MassLive, part of The Republican of Springfield, publishes a fair amount of Worcester news. GBH News has a Worcester bureau. The 016.com aggregates news from the Worcester area as well. Still, a Worcester-based nonprofit, grounded in community values, would be a welcome addition to Central Massachusetts.

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A nonprofit news outlet will launch in Worcester in an unusual partnership

Federal Square in Worcester. Photo (cc) 2015 by Dan Kennedy.

Update: This is getting complicated, so let me give it another shot. Bill Shaner, who writes the newsletter Worcester Sucks and I Love It, reports that the Guardian has lifted its About page almost verbatim from The New Bedford Light, a large, well-established nonprofit. But it should be noted that the very first line of the Guardian’s ethics and practices policies — not the same as its About page — is this: “We will subscribe to standards of editorial independence adopted by the Institute for Nonprofit News and the New Bedford Light.” The attribution should be clearer and included in the About page, too.

New England’s second largest city will soon be getting its own nonprofit news organization — but there’s a twist. The sponsor behind The Worcester Guardian is the Worcester Regional Chamber of Commerce, a business group whose involvement, on the face of it, is incompatible with the independence that accountability journalism requires.

I’m not dismissing this out of hand. The press release issued by the Chamber says that the Guardian will be governed by “an independent board of directors and a community advisory board,” and that the project will seek membership in the Institute for Nonprofit News. INN is not going to approve the Guardian’s application unless its leadership is satisfied that the Chamber will not be in a position to dictate or interfere with coverage. Here, for example, is an excerpt from INN’s model code of ethics:

Our organization retains full authority over editorial content to protect the best journalistic and business interests of our organization. We maintain a firewall between news coverage decisions and sources of all revenue. Acceptance of financial support does not constitute implied or actual endorsement of donors or their products, services or opinions.

In addition, Dave Nordman, the former executive editor of the city’s daily, the Telegram & Gazette, has signed on as a consultant to the project. Nordman is an outstanding journalist. Dave has been a Northeastern colleague for the past couple of years, serving as executive editor in the university’s office of external affairs.

The Worcester area has been something of a news desert for years, as Gannett has hollowed out the T&G. It sounds like the Chamber is trying to do the right thing, and I wish the Guardian well.

In his report on the launch for the Boston Business Journal, Don Seiffert writes that the Chamber will help the Guardian get started with a $50,000 donation. Below is the Chamber’s press release.

Today, the Worcester Regional Chamber of Commerce announced the launch of the Worcester Guardian, an independent, free, nonprofit digital news organization.

“The Worcester Guardian will deliver free civically oriented journalism on an array of topics important to Worcester and the Central Massachusetts region,” said Timothy P. Murray, the chamber’s president and CEO.

This announcement coincides with the public release of a white paper prepared for the Worcester Regional Chamber of Commerce Board of Directors in July titled, “Central Massachusetts: A story to be told – a new model for Worcester in delivering civic information and local news to Central Massachusetts residents.”

The white paper details the growing national trend of communities establishing non-profit news organizations. Successful nonprofit news organizations in New England include VTDigger in Vermont, the New Hampshire Bulletin and the New Bedford Light. In Maine, the nonprofit National Trust for Local News recently purchased five daily and 17 weekly newspapers.

The Worcester Guardian has applied for membership in the Institute for Nonprofit News, which has over 425 affiliates nationwide, including 38 in Massachusetts.

Readers will be able to access stories free of charge through the Worcester Guardian’s website, social media platforms – Facebook, Instagram and X (formerly Twitter) – as well as free email newsletters.

“As is the case in other communities this will take time to scale and will require resources and support from the business community, various institutions and nonprofits, as well as everyday readers,” Murray said. “It will be work, but I am confident the community will respond and support this important initiative that will seek to tell our collective story locally, statewide and across the country on a daily basis.”

Since 2000, more than 2,200 newspapers across the country have closed, including over 360 alone since just before the start of the pandemic, according to the New York Times. In Worcester, the Telegram & Gazette has seen steady cutbacks under corporate ownership since being sold by the Stoddard, Fletcher and Booth families in 1986.

“The decline of local news both here in Central Massachusetts and across the country is unhealthy to our civic well-being,” said Christine Cassidy, the chamber’s board chair. “Consistent with the chamber’s role over its nearly 150-year history and our mission in seeking to better our region, the chamber will lead the facilitation over the next 18 to 24 months in establishing an independent and sustainable nonprofit news organization.”

This will include establishing an independent board of directors and a community advisory board for the new 501(c)(3) charitable organization.

To ensure the Worcester Guardian follows proper journalistic guidelines from the outset, former Telegram & Gazette executive editor David Nordman will serve as a consultant to the new nonprofit news organization.

“I am excited to assist with this important initiative,” Nordman said. “Free, nonprofit, independent news provides a dynamic new platform to tell the Central Massachusetts story and report on important issues impacting Worcester and the region.”

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Sue Cross of INN tells us why this is a golden age of news innovation

Sue Cross at the recent INN Days gathering in Washington. Photo by Will Allen-DuPraw and used with permission.

On the latest “What Works” podcast, Ellen Clegg and I talk with Sue Cross, the veteran journalist who will step down as executive director and CEO of the Institute for Nonprofit News (INN) by the end of 2023. Sue has led INN since 2015, and has overseen a period of tremendous growth. There were 117 nonprofit newsroom members listed in the INN’s 2015 annual report. This year, INN has 425 member newsrooms.

She has also been a driving force in the NewsMatch program, a collaborative fundraising project that has helped raise more than $270 million for emerging newsrooms since its launch in 2016. Before joining INN, Cross was a journalist and executive at The Associated Press. Cross says we are in a golden age of news innovation, and she hopes to continue to lend her support. She also says she hopes to spend time on personal projects.

Ellen has a Quick Take on the launch of the Houston Landing, a nonprofit digital site serving Greater Houston. I provide an update on efforts to extract money out of Google and Facebook in order to pay for news.

You can listen to our conversation here and subscribe through your favorite podcast app.