Tag: nonprofit

Measuring the effectiveness of nonprofit news

On October 30, 2013

New Haven Green

Among the more difficult challenges I faced when I was researching “The Wired City” was trying to figure out the influence — and thus the effectiveness — of the New Haven Independent, the nonprofit online-only news site that is the major focus of the book. So I was intrigued when NPR reported last week that the folks who run Charity Navigator hope to unveil effectiveness ratings for nonprofits in 2016. I suspect it won’t be easy.

Nonprofit news presents special challenges. You can measure a food pantry’s effectiveness by how many families get fed, or an orchestra’s reach in terms of attendance, educational programs and the like. But how do you measure the effectiveness of a news organization?

The way I tried to answer that question was to look at numbers, but to look beyond the numbers as well. Certainly the numbers couldn’t come close to telling the whole story. The Independent’s main competitor is the regional daily newspaper, the New Haven Register, whose website receives considerably more traffic than the Independent’s (two to three times as much, according to Compete.com‘s very rough numbers) — and which, unlike the Independent, has a daily print edition. How can the Independent possibly exercise the same amount of influence?

It can’t. But that doesn’t mean that it’s ineffective. Since it’s not a mass-circulation outlet, the Independent relies on reaching civically engaged people — city leaders, neighborhood activists and anyone who takes an interest in what’s going on in New Haven on a daily basis.

In a 2009 interview, Michael Morand, an associate vice president at Yale, described the Independent’s readers as “active voters, elected and appointed officials, opinion makers, civic activists as measured by people who are on boards, leaders of block watches and other neighborhood organizations.” Mayor John DeStefano told me in 2011 that he considered the Register to be “the dominant media,” but added that the Independent serves “those that follow city government and community-based activities.”

One issue stood out for me as an example of how the Independent could be effective while reaching a niche audience. In the fall of 2010 the Independent — following the lead of the Yale Daily News — began reporting on incidents in which police officers ordered people not to video-record them while they were making arrests and engaging in other activities. The Independent reported on the story for months, and revealed that one man on a public sidewalk had his cellphone confiscated and the video erased; the man was charged with interfering with police.

The Independent’s reporting led to real reform. An investigation was conducted. Mayor DeStefano and the police chief at that time, Frank Limon, ordered that officers stop harassing people trying to video-record their actions as long as they weren’t interfering in police business. Mandatory training in how to respond to video-camera-wielding members of the public was added to offerings at the police academy — training that Independent founder Paul Bass and I observed during a visit to the academy. And state Sen. Martin Looney, a New Haven Democrat, introduced legislation to make it clear that such recording was legal.

The Independent also builds influence through public events — community forums such as political debates and other events that are webcast and covered by other media as well. A particularly prominent example was a school forum in late 2010 starring education-reform critic Diane Ravitch.

I don’t think numbers tell the story, but here are a few:

According to the Independent’s internal counts from Google Analytics and Mint, the site receives between 120,000 and 140,000 unique visitors a month.
The Independent’s Facebook page has been “liked” 3,443 times as of this morning.
The Independent’s Twitter feed, @NewHavenIndy, has 4,486 followers.
The site’s weekly news email has about 4,000 subscribers, according to Bass — up about 1,000 over the past year.
A separate arts email has about 5,000 subscribers.

And here’s a cautionary tale for publishers who rely on outside services like Facebook, which have their own agendas: Bass told me that a change in policy may be responsible for less traffic coming to the Independent from Facebook. “Now they don’t automatically show your posts to all your followers. They show them to a sample, hoping you’ll pay to reach more of your people,” Bass said in an email last week. “So we’ve seen a drop in Facebook traffic as a result. (Which maybe quite fair. We use them free as paperboys.)”

When I asked Bass how he thought funders and prospective funders could measure the effectiveness of nonprofit news, his response was that he wasn’t sure. So what attempts have his funders made? “They look at what we publish, how people interact with it, how they experience the site’s impact living and working in the area,” Bass said. “No one has asked us for numbers.”

According to the NPR story, reported by Elizabeth Blair, some nonprofits are resisting Charity Navigator’s attempt to measure how well they’re doing. And there’s no question it will be difficult — maybe impossible — to come up with a fair system that everyone will agree on.

But it seems worth trying, especially in journalism. With traditional for-profit news, the relationship between revenue and quality is only tangential. News organizations are judged by how well their advertising moves products and services. You’d like to think that advertisers would rather be associated with quality news than the alternative, but that’s not necessarily the case.

With nonprofit news, the better the journalism, the more influence it will have — and the more attractive it should be to funders.

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

In Batavia, a for-profit, locally owned news site

By Dan Kennedy

On July 9, 2013

In Media

Downtown Batavia

This article appeared earlier at the Nieman Journalism Lab. I’ll be reading from “The Wired City” this Saturday, July 13, at 11 a.m. at Present Tense Books, located in Batavia at 101 Washington Ave.

For those of a certain age, perusing the ads posted at The Batavian, a for-profit news site in Batavia, N.Y., can seem a lot like flipping through the pages of a weekly community newspaper a generation or two ago.

Which is to say there are a lot of ads — more than 140, every one on the home page, a practice that publisher Howard Owens believes is more effective than rotating them in and out. There are ads for funeral homes and pizza shops. For accountants and tattoo parlors. For auto-repair centers and ice-cream stands. For bars and baseball (the minor-league Batavia Muckdogs).

The success of The Batavian matters to the future of local journalism. In my book “The Wired City: Reimagining Journalism and Civic Life in the Post-Newspaper Age,” I devote most of my attention to the New Haven Independent, a nonprofit site that subsists on grant money, donations and sponsorships. At this early stage of online news, nonprofits like the Independent are often able to raise more money more quickly than for-profits. But not every community can support a nonprofit. Thus it is vital for the future of news that entrepreneurs like Owens figure out the for-profit side — which is why I also devote a fair amount of space in “The Wired City” to what’s going on in Batavia.

Owens launched The Batavian in 2008 as a demonstration project for GateHouse Media, where he was the director of digital publishing. When his position was eliminated in early 2009, he asked GateHouse if he could take the fledgling site with him. He was granted his wish.

The Batavian is free and covers not just the city of Batavia (population 15,000) but surrounding Genesee County (60,000) as well. It receives about 80,000 unique visitors per month, according to Quantcast. That’s roughly the same as the site’s newspaper competition, The Daily News, also based in Batavia. (Web analytics are imprecise, and Owens says his internal count, provided by Google Analytics, shows about 118,000 uniques per month.) Of course, The Daily, as the locals call it, depends mainly on print distribution. On the other hand, The Batavian covers just one county to The Daily’s three, making Owens’ online reach all the more impressive.

The Batavian’s 12-month projected revenues are currently about $180,000 a year — enough to provide Owens and his wife, Billie Owens, the site’s part-time editor, with a comfortable living, and to employ a part-time sales and marketing coordinator. Unlike AOL, with its struggling network of Patch sites, The Batavian is independent, and Owens aims to keep it that way. As the Authentically Local project, of which The Batavian is a part, puts it: “Local doesn’t scale.”

Howard Owens

If a nonprofit like the New Haven Independent can raise more money than a for-profit (indeed, Independent founder and editor Paul Bass chose the nonprofit route in 2005 because he realized he couldn’t support himself with a for-profit), there are nevertheless certain advantages to for-profit online journalism. Let me outline three of the more obvious.

• Anyone can start a for-profit news site. The nonprofit route requires approval from the IRS and support from local foundations. In many cases, neither may be forthcoming — and as I recently wrote, the IRS has all but halted approval of 501(c)(3) status for nonprofit news sites, which they depend on so that donors can make tax-free contributions. By contrast, all it takes to launch a for-profit site is talent, experience and a willingness to work hard. That’s no guarantee of success, but the opportunity is there for all.

• Local ads enhance the vibrancy of a site. Owens likes to say that advertising is content. The ads at The Batavian give you a good feel for Genesee County — and provide a context for Owens’ coverage of everything from court news to traffic accidents, from school events to development proposals. Advertising and news work together to provide a well-rounded picture of the community. Yet you won’t see ads at a nonprofit site like the Independent, save for a few image-building “sponsorships” from local institutions such as college and hospitals.

• For-profit sites enjoy the full protection of the First Amendment. Like public radio and television stations, but unlike the vast majority of newspapers, nonprofit news sites are legally prohibited from endorsing candidates for public office. “Editorial endorsements — or the denial of them — are among the most powerful tools that newspapers have for holding political figures to account,” write the media scholar Robert McChesney and the journalist John Nichols in their 2010 book “The Death and Life of American Journalism: The Media Revolution that Will Begin the World Again.” The Batavian hasn’t actually endorsed any candidates, but at least it’s not legally prohibited from doing so — and Owens takes strong stands on other local issues without having to worry about the federal government swooping in and threatening his livelihood.

***

When I visited Batavia in 2009, I rode along with Owens as he made sales calls and covered stories in Genesee County. It seemed like a hard slog. At one point, as we were driving through the tiny farm town of Stafford, he gestured to a well-manicured golf course. “If you find out that I’ve joined the Stafford Country Club,” he said, “then I’ve been successful.” Two years later, I asked him about the status of his country club aspirations. He laughed. “I’d love to join the Stafford Country Club and have time to enjoy the privileges thereof,” he said, “but we’re probably years away from doing that.”

Yet The Batavian keeps growing. Last week the site announced a new real-estate ad partnership. Recently Owens told me he now spends virtually none of his time on ad sales, having offloaded that task to his part-time employee. The Owenses are able to devote the bulk of their time to journalism — something that was not the case when I was researching “The Wired City.”

Owens likes to remind people that we’re at the very beginning of online news as a business, and that what appears not to add up economically today may look quite different a few years from now. As Owens asked in a provocative blog post four years ago: “If it took newspapers more than 100 years to build the business and content models that we all now cherish, why do we expect a fully formed online model to emerge in just 10 years?”

Photos (cc) 2009 by Dan Kennedy.

A venerable precedent for nonprofit journalism

By Dan Kennedy

On July 6, 2013

In Media

Here’s something I completely forgot when I wrote recently about the IRS’s assault on nonprofit journalism: The Associated Press is a nonprofit. It’s time for the IRS to resume approving 501(c)(3) status for nonprofit news organizations.

CJR reviews “The Wired City”

By Dan Kennedy

On July 1, 2013

In Media

The new issue of the Columbia Journalism Review includes a favorable review of “The Wired City” by Michael Meyer. Here is my favorite section:

“The Wired City” doesn’t have anything resembling a central thesis. (This isn’t a flaw. Way too many “future of journalism” books and reports waste their time trying to argue grand, overarching theses that almost always fall apart on closer analysis.)

One of my goals in writing the book was to return to the sort of in-depth, close-up reporting that drew me to journalism in the first place. Yes, I do some opinionating in the book, but mainly I try to let the story tell itself. I appreciate Meyer’s recognizing that and seeing it as a virtue rather than a shortcoming.

Meyer is critical of my argument that nonprofit news sites like the New Haven Independent tend to be better funded and capable of more ambitious journalism than for-profit sites — at least in these early years of the post-newspaper era.

Though I agree with Meyer that I could have done a better job of quantifying that observation, I nevertheless believe I was describing a situation that’s real. For-profits like The Batavian and CT News Junkie are doing better all the time — better than they were when I was researching the book.

But it’s still a hard slog. Given the low value the marketplace has assigned to online advertising, that’s likely to continue.

How the IRS is killing nonprofit media

By Dan Kennedy

On May 16, 2013

In 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.