By Dan Kennedy • The press, politics, technology, culture and other passions

Tag: Kara Meyberg Guzman

Santa Cruz Local shifts to a nonprofit business model

Kara Meyberg Guzman

Just two weeks after The Colorado Sun announced it was shifting from a for-profit to a nonprofit business model, Santa Cruz Local is taking the same step. The podcast-heavy Local, a much smaller project than the Sun, competes with Ken Doctor’s for-profit (the last time I checked!) Lookout Santa Cruz. Kara Meyberg Guzman, the CEO and co-founder of the Local, was a guest on our “What Works” podcast last year, as was Lookout founder Ken Doctor. Guzman is also featured in “What Works in Community News,” Ellen Clegg’s and my forthcoming book.

In an email to Local members, Guzman writes:

At Santa Cruz Local, we believe that Santa Cruz County is stronger when everyone has access to fair, accurate, high-quality local journalism. That’s why all our news is free.

Our business model depends on locals like you to donate, because many of our readers cannot. Santa Cruz Local recently changed our tax status to make it easier for you to donate. Now that Santa Cruz Local is a 501(c)3 nonprofit, your donations and membership contributions are tax-deductible.

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A wild tale about a news war in Santa Cruz, Calif.

Natural Bridges State Beach in Santa Cruz, Calif. Photo (cc) 2005 by Coralie Mercier

James Rainey of the Los Angeles Times has a pretty wild story about the trials and tribulations of Lookout Santa Cruz, a news outlet in California launched by the longtime media analyst Ken Doctor. In Rainey’s telling, Doctor is a demanding, dictatorial boss who’s had trouble holding onto talent, and he’s angered his competitors with claims that they regard as dismissive.

On the other hand, it sounds like Doctor has pretty quickly established Lookout as the news source of record in Santa Cruz, even though the Santa Cruz Sentinel, owned by the hedge fund Alden Global Capital, reaches more readers.

As it happens, we’ve had both Doctor and another of his competitors, Kara Meyberg Guzman, co-founder of Santa Cruz Local, on the “What Works” podcast, and we asked them both about each other. Please give them a listen.

Kara Meyberg Guzman talks about her Santa Cruz start-up and life after Alden

Kara Meyberg Guzman

Our latest “What Works” podcast features Kara Meyberg Guzman, CEO and co-founder of Santa Cruz Local in California. Before the Local, she was managing editor of the Santa Cruz Sentinel. In 2018 she left her job at the Sentinel, which is owned by Alden Global Capital’s MediaNews Group, citing differences with the company’s management.

Kara then connected with another former Sentinel reporter, Stephen Baxter, and the two of them hatched a plan for the Local. They focus on public policy issues that affect the whole county, like housing, development and public health. The Local is a private company, owned by the co-founders. The revenue model is a mix of memberships, business sponsorships, grants and advertising. But the mission is simple. As the website puts it: “We strive to understand Santa Cruz in all of its complexity.”

Santa Cruz may turn out to be the most talked-about community on our podcast. Not long ago we interviewed Ken Doctor, the longtime media analyst who launched a high-profile, well-funded project called Lookout Santa Cruz. It is encouraging to see that in a region whose legacy newspaper has been hollowed out by vulture capitalism, two digital start-ups are working to fill the gap.

I’ve got a Quick Take on a new report by LION Publishers that contains some really positive findings about funding and sustainability for local news startups. Anyone who’s thinking about starting a community news project ought to take a look at it. Ellen Clegg highlights the work of Katherine Massey, a columnist who was killed in the racist massacre at the Tops grocery store in Buffalo.

I also tip the hat to Anne Galloway, the founder and executive editor of VTDigger, who has announced that she’s giving up the editor’s position and is returning to the reporting ranks. She’ll be an editor-at-large focusing on investigative reporting. Galloway started Digger 13 years ago as a one-woman operation after she was laid off by the Rutland Herald. Today, Digger has 32 full-time employees and is regarded as one of the leading digital sources of regional news in the country.

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

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