Federal bill would ease the way for nonprofit local news

A bill filed by U.S. Rep. Mark DeSaulnier, D-Calif., would make it easier for “written news organizations” to claim nonprofit status, “allowing them to focus on content instead of profit margins and reduce their tax burden.”

The bill, H.R. 3126, has been endorsed by the News Media Alliance, the National Newspaper Association, the American Society of News Editors, the Associated Press Media Editors, the Association of Alternative Newsmedia, the California News Publishers Association, Free Press Action and the Open Markets Institute.

Nonprofit news is nothing new — organizations ranging from public media to hyperlocal community websites have nonprofit status. Donors are able to write off contributions, and the news organizations themselves are exempt from most taxes.

But it’s not easy. Back in 2013, I wrote that the IRS had virtually stopped granting 501(c)(3) nonprofit status to startup news organizations as it wrestled with the question of whether journalism was among the educational activities envisioned under the tax code.

Though it’s my understanding that the agency has loosened up since then, questions remain. For instance, The Salt Lake Tribune recently announced that it would seek nonprofit status, which would make it the first regional newspaper to do so. Writing at the Nieman Lab, though, Christine Schmidt and Joshua Benton wondered whether the Tribune would run into trouble for its coverage of professional sports and the restaurant scene, which would appear to fall outside the IRS guidelines.

On the other hand, Paul Bass, the founder of the New Haven Independent, a 13-year-old nonprofit news project, told me recently that the only guidance he ever received was that the Independent could not endorse political candidates or lobby the government.

Presumably DeSaulnier’s bill will help clear up those issues. And a personal note: I played a very small role in crafting the legislation. DeSaulnier and I discussed his ideas last fall, and I suggested to his office — unsuccessfully — that the bill not be restricted to “written” forms of journalism.

The legislation is one of two stories in the news right now about the future of local journalism. The other is a proposal by the newspaper industry to suspend antitrust laws so that they may negotiate collectively with social media platforms in an attempt to obtain payment for the use of their content.

The News Media Alliance, the newspaper business’ principal lobbying group, released a study this week claiming that Google and Facebook made $4.7 billion in 2018 through its uncompensated use of material that originally was published on newspaper websites.

You can read the full text of Rep. DeSaulnier’s bill to encourage nonprofit journalism by clicking here. The text of his office’s press release is below.

June 6, 2019 | Press Release

Washington, DC – Today, Congressman Mark DeSaulnier (CA-11) announced the introduction of the Saving Local News Act (H.R. 3126), a bill to recognize newspapers as a public good and make it easier for written news organizations to become non-profits – allowing them to focus on content instead of profit margins and reduce their tax burden. The bill is supported by the News Media Alliance, the National Newspaper Association, the American Society of News Editors, the Associated Press Media Editors, the Association of Alternative Newsmedia, the California News Publishers Association, Free Press Action, and the Open Markets Institute.

“Local journalism has been a bedrock of American society for over 200 years. I remember when dedicated reporters sat in the front row of city council meetings to keep communities informed and to increase accountability. Today many local newspapers are dying out – penny pinching until they close or are bought up and sold off piecemeal by hedge funds. This bill would allow papers to renew their focus on quality content and flourish unencumbered by ever-increasing demands for greater profits,” said Congressman DeSaulnier.

“We commend Congressman DeSaulnier for introducing this important piece of legislation that recognizes the importance of nonprofit journalism to the American society. At a time when news deserts are a growing concern, we must ensure that we support all newsrooms in their efforts to provide high-quality journalism to their local communities. This journalism bill that would allow non-profit newsrooms to treat advertising revenue as nontaxable income could be helpful to a number of publishers,” said David Chavern, President and CEO, News Media Alliance.

“News organizations today must explore a wide array of avenues for sustainability, one of them being non-profit status. But the federal law lays many trip wires along this path, including the way advertising is taxed. The non-profit route could be attractive for some newspapers if and only if Congress recognizes that even a non-profit newspaper still needs good revenue sources. This proposal by Congressman DeSaulnier will open up new possibilities for sustaining quality journalism in American communities. We appreciate the concept and, even more, we welcome the interest from an important member of Congress in helping newspapers that are at risk to survive,” said Andrew Johnson, President, National Newspaper Association.

“This legislation carries the promise of helping news outlets large and small, in big cities and small towns, throughout the country. It will allow for innovation into new models of journalism and carries significant potential to address the growing problem of ‘news deserts’ around the country where the for-profit model is not sustainable,” said Angie Muhs, President, Associated Press Media Editors.

“The nonprofit model of journalism may well be one viable future of journalism, at least where smaller publications are involved. This is a constant topic of discussion among our membership which is why our organization welcomes this legislation as a means of increasing the likelihood that those who choose can convert themselves to non-profit status, while maintaining a strong journalistic enterprise,” said Molly Willmott, President, Association of Alternative Newsmedia.

“At a time when editors around the country continue to see newsrooms shrink in the face of financial constraints, we welcome every avenue to greater revenue. This legislation offers significant assistance that will allow news organizations to survive without constraining their actual journalism in any way,” said Nancy Barnes, President, American Society of News Editors.

“Community newspapers are woven into the fabric of American society and provide accurate and trusted information that improves the lives of individuals in the communities they serve. It is no secret that newspapers face an increasing number of existential threats from online competitors which have left them with a decreasing number of revenue opportunities. This measure would provide news organizations with the means to better rise to these challenges and continue to play a vital role in their communities by holding the feet of the powerful to the fire and giving voice to the powerless,” said Jim Ewert, General Counsel, California News Publishers Association.

Since 2017, estimated daily newspaper circulation fell 11 percent from the previous year (Pew Research Center). Congressman DeSaulnier recently established a working group of dedicated Members of Congress from areas affected by a drought of high-quality journalism. Together they have been working to highlight this crisis and bring attention to the need to promote local journalism, including by holding a Special Order on the floor of the U.S. House of Representatives and introducing the Journalism Competition and Preservation Act (H.R. 2054), a bill to create a temporary safe harbor from anti-trust laws to allow news organizations to join together to negotiate with dominant online platforms to get a fair share of advertising profits.

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From ‘The Wired City’ to the rise of the media moguls

Last Wednesday I had a chance to catch up with Paul Bass, founder and editor of the New Haven Independent and the principal subject of my last book, “The Wired City.” Paul and I talked about my new book, “The Return of the Moguls,” at the Book Trader Café in downtown New Haven. It was a lot of fun — and, as you’ll see from the Facebook Live video (just click on the image), Paul asked some tough questions.

How three newspaper moguls responded to the end of free digital content

New Haven at night. Photo (cc) 2007 by Matt Krause.

Author Dan Kennedy will talk about the future of the news — and his new book “The Return of the Moguls: How Jeff Bezos and John Henry Are Remaking Newspapers for the Twenty-First Century” — with Independent Editor Paul Bass at an event at the Book Trader Cafe, 1140 Chapel St., Wednesday, May 23, at 6:30 p.m. An excerpt from Dan’s book follows.

Communities can’t thrive without strong, independent journalism.

When the business model that pays for news fails, we need alternatives. That was the idea behind my 2013 book, The Wired City, which explored new forms of online local journalism, with a focus on the New Haven Independent.

But traditional newspapers still matter, whether in print, online, or both. A good daily paper can reach an audience and command attention more effectively than most other types of media. Newspapers are often seen as dinosaurs lumbering toward extinction, laid low by technological advances, the collapse of advertising revenues, and greedy hedge-fund owners seeking to squeeze out every last drop of profit before discarding them like yesterday’s news. In such an environment, can newspapers be saved?

Read the rest at the New Haven Independent. And talk about this post on Facebook.

Radio for the people: Providing a voice for Boston’s communities of color

My friend Donna Halper has a great suggestion for how Boston can help bridge the racial divide that continues to define our city and region: bring back local radio that serves the African-American community. The Boston Globe today follows up its recent Spotlight Team series on race, “Boston. Racism. Image. Reality.,” with some ideas from its readers. (And kudos to the Globe for dropping the paywall.) Here is what Halper, a Lesley University professor and longtime radio consultant, has to say:

A professor said that Boston’s media landscape may suffer from the lack of a prominent local radio station that’s black-owned. Boston used to have a station owned by black community members, WILD, but under new corporate ownership it stopped focusing on African-American issues a number of years ago.

“In most cities with a sizable black population, there have been local radio stations around which the community could rally,” wrote Donna L. Halper, an associate professor at Lesley University. “These stations were not just about playing the hits; they were a focus of information and news that the so-called ‘mainstream’ stations didn’t usually address.”

Black-owned media, such as the Bay State Banner newspaper, have had trouble generating significant advertising support, she said, and “a thriving black media would go a long way towards making the black community feel as if its story is being told.

“Relying on the ‘mainstream’ media often means the only time stories of your neighborhood get told is when crimes are committed,” Halper said. “White Bostonians have long held inaccurate ideas about black Bostonians because more often than not, the only stories widely reported depicted danger and criminality.”

(Note: In 1997, during my Boston Phoenix days, I wrote about WILD’s struggle to survive as an independent radio station in the face of corporate consolidation unleashed by the Telecommunications Act of 1996.)

Now, if I were reading Halper’s comments and wanted to follow up, the first person I’d talk with is Paul Bass, the founder and editor of the New Haven Independent, a nonprofit online-only news operation that is still thriving after 12 years. When I was writing about the Independent for my book “The Wired City,” the Independent had a mostly white reporting staff to cover a city with a large African-American community. They did a good job, but it wasn’t ideal.

The Independent’s staff is more diverse today. Even more important, though, is that in 2015 Bass launched a nonprofit low-power FM radio station, WNHH, which also broadcasts online. Rather than writing stories for New Haven’s communities of color, members of those communities have come inside to host programs and tell their own stories. It has proved to be a real boon to New Haven. And though it would be hard to replicate something like that in a city as large as Boston, there surely must be ways to adapt what Bass is doing.

More: Of course Touch 106.1 FM is already providing a valuable service in Boston — but without an FCC license. The city needs a community radio station that can operate legally and can thus enjoy a higher profile and more influence. Also popping up in the Facebook comments: Zumix, a youth-oriented bilingual LPFM and online station in East Boston.

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Here we go again: No, print will not save the shrinking newspaper business

This 1910 photo of an 8-year-old Philadelphia newsboy, Michael Mc Nelis, was taken by Lewis Hine for the Children’s Bureau of the US Department of Commerce and Labor.
This 1910 photo of an 8-year-old Philadelphia newsboy, Michael Mc Nelis, was taken by Lewis Hine for the Children’s Bureau of the US Department of Commerce and Labor.

A few years ago Paul Bass and I appeared on a Connecticut radio station to talk about the future of local journalism. Bass was and is the founder, editor, and publisher of the New Haven Independent, a nonprofit, online-only news organization that is the main subject of my book The Wired City.

Bass and I both came out of the world of alternative weeklies. He was the star reporter for the New Haven Advocate. I was the media columnist for the Boston Phoenix. While we were on the air, he told a story about a club owner in New Haven who had once advertised heavily in the Advocate—but had found he could reach a better-targeted audience on Facebook while spending next to nothing.

Need I tell you that both the Advocate and the Phoenix have gone out of business?

I’m dredging up this anecdote because the Columbia Journalism Review has published a much-talked-about essay arguing that newspapers made a huge mistake by embracing all things digital and should instead have doubled down on print. Michael Rosenwald writes that instead of chasing ephemeral digital revenues, newspapers should have built up their print editions and offered more value to their readers.

Read the rest at WGBHNews.org. And talk about this post on Facebook.

New Haven Independent celebrates its first decade

IMG_0266
Arts writer David Sepulveda with a vintage copy of the first incarnation of the New Haven Independent, which was co-founded by Paul Bass and was published for several years in the late 1980s.

Congratulations to Paul Bass and the staff and friends of the New Haven Independent, who are celebrating the community website’s 10th anniversary.

On Wednesday evening a couple of dozen people gathered at the offices of La Voz Hispana, the Independent’s partner and landlord, to toast 10 years of nonprofit online journalism. It was a lower-key affair than the fifth anniversary — Bass and crew have been so busy launching the Independent’s low-power FM radio station, WNHH, that they didn’t have time to plan a proper celebration. (The Independent is the subject of my book “The Wired City.” I wrote about WNHH recently for the Nieman Journalism Lab, and was later a guest.)

The party was emceed by Norma Rodriguez-Reyes, the president of La Voz and chair of the Online Journalism Project, the nonprofit organization that oversees the Independent and its affiliated projects — WNHH, the Valley Independent Sentinel  and the Branford Eagle.

Last week Bass marked the 10th anniversary with a special hour-long conversation on WNHH about the state of independent journalism with Rodriguez-Reyes; Christine Stuart, the editor and co-owner of CT News Junkie, a for-profit website covering politics and public policy in Connecticut; and Babz Rawls-Ivy, managing editor of The Inner-City News, an African-American newspaper based in New Haven, as well as a talk-show host on WNHH.

Among other things, Bass compares legacy media’s coverage of the decline of journalism to someone who spends all his time hanging out at a funeral home and concludes that everyone must be dead. Well worth a listen.

IMG_0269
Mubarakah Ibrahim (left), host of “Mornings with Mubarakah” on WNHH, with her children.
IMG_0277
Paul Bass (right) and me. Photo by Independent alumnus and current Wall Street Journal reporter Thomas MacMillan.

The New Haven Independent takes to the airwaves

WNHH station manager Lucy Gellman and New Haven Independent editor Paul Bass.
WNHH station manager Lucy Gellman and New Haven Independent editor Paul Bass.

John Dankosky stood before the 20 or so fledgling radio hosts who had crowded into the New Haven offices of La Voz Hispana de Connecticut and told them not to be afraid to assert themselves in the face of an overly talkative interview subject.

“It’s your show and it’s your microphone and they are your guests. You need to be the gatekeeper,” said Dankosky, vice president of news at Connecticut’s public radio network WNPR and host of the daily public affairs program “Where We Live.”

Dankosky was leading a session of Radio 101 for WNHH, a low-power FM (LPFM) community station scheduled to make its debut on August 11. The station is being launched by the New Haven Independent, a pioneering online nonprofit news site that debuted 10 years ago next month.

Read the rest at the Nieman Journalism Lab.

On naming names: Looking back at the Annie Le case

Authorities have arrested and are preparing to charge the Rhode Island suspect in the alleged terrorist plot that ended in the shooting death of a Boston man last week. News organizations that had been withholding his name are now identifying him. The Boston Globe, for instance, reports that he is Nicholas Rovinski, 24, of Warwick, Rhode Island.

As I wrote last week for WGBH News, identifying a “person of interest” who has not been charged — and who may not be charged — is an ethically dubious practice. My views are informed by what I learned in researching my book “The Wired City.” Among the stories I reported on was the New Haven Independent’s decision not to name the likely suspect in the murder of a Yale graduate student until after he had been formally charged. Independent editor Paul Bass spoke with my Northeastern ethics students about the case in a conference call earlier this week.

What follows is an excerpt from “The Wired City,” taken from a longer excerpt published by the Nieman Journalism Lab.

***

Annie Le
Annie Le

On Monday, Sept. 14, 2009, six days after Annie Le had been reported missing, the Independent became the first to reveal that police had identified a 24-year-old laboratory technician who had worked with Le as a “person of interest.” The New Haven Register’s website followed shortly thereafter. And so began one of the more curious side stories of the Annie Le case.

As law enforcement officials continued with their investigation on Tuesday, neither the Independent nor the Register released the name of Le’s coworker. On Tuesday night, though, the police department held a news conference and announced that the “person of interest” was Raymond Clark, whose name was included in a press release. Because the news conference was covered live by a number of television stations, Clark’s identity immediately became public. On Wednesday, the Register named Clark and interviewed people who knew him. “I’m in total shock,” an unidentified high school classmate was quoted as saying. “He was the nicest kid — very quiet, but everyone liked him. I can’t believe he could do this. I’m sick to my stomach.” But the Independent continued to withhold Clark’s name.

The Independent’s managing editor, Melissa Bailey, was at the news conference too. She took notes and shot some video of New Haven Police Chief James Lewis speaking to reporters. But neither her story nor her video used Clark’s name. Bailey wrote, somewhat cryptically, “Police named the target of the search, calling him a ‘person of interest.’” Nor did the Independent identify Clark on Wednesday — and not even in a story posted early on Thursday morning reporting that police had staked out a motel where Clark was staying the night before, although it did link to a Register story that identified Clark in its lead paragraph. It wasn’t until later on Thursday morning that the Independent finally named Raymond Clark as the person police believed had murdered Annie Le. The reason: by then Clark had been arrested and charged, and was being taken into court for a formal arraignment.

The Independent’s refusal to name Clark until he had been formally charged was an admirable exercise in journalistic restraint. The decision derived in part from Bass’s institutional memory. In 1998, police had mistakenly identified a Yale professor as a “person of interest” in the murder of a student named Suzanne Jovin. No evidence against the professor was ever made public, and the murder was never solved. (In 2013, Yale and the city of New Haven announced a settlement with that wrongly accused professor.) Essentially, though, this restraint was a statement of Bass’s sense of how a news organization ought to serve the community

Judging by comments posted to the Independent, many readers appreciated Bass’s decision. “Thank you for the good sense to not publish his name at this time,” wrote “asdf” on Tuesday evening, after Clark’s name had begun to leak out but before the police had named him. The commenter added: “I really don’t understand what there is to gain by releasing his name — if you don’t have enough evidence to arrest him, then you don’t have enough evidence to smear him in the media.” Then there was this, from “LOOLY,” posted on Wednesday morning, after Clark’s name had been widely reported: “It should really be very simple. Unless he is being charged his name should not be used.”

Bass also had to make several other difficult decisions about identifying people connected to the Annie Le story. On Sept. 14, as Clark’s name was leaking out, the media converged on his apartment in Middletown, northeast of New Haven. Christine Stuart, who runs the political website CT News Junkie and contributes to the Independent, noticed the name of a woman along with that of Raymond Clark. She passed it along, and Melissa Bailey started plugging it into various social-networking sites. It didn’t take long before she found a public MySpace page for the woman, who turned out to be Clark’s 23-year-old fiancée. Bailey captured a screen image before the page could be taken down — which it soon was.

Bailey wrote a story that began, “The target in the slaying of Yale graduate student Annie Le had something in common with the victim — he, too, was engaged.” And she quoted the young woman as writing of Clark: “He has a big heart and tries to see the best in people ALL THE TIME! even when everyone else is telling him that the person is a psycho or that the person can’t be trusted. he thinks everyone deserves a second chance.” The woman’s name and photograph wound up being published by other news outlets, but it never appeared in the Independent.

That was not the Independent’s only social-networking scoop. In nearby Branford, Marcia Chambers of the Branford Eagle, a community news site that is affiliated with the Independent, was working her sources. Somehow she obtained a 2003 police report about an ex-girlfriend of Raymond Clark who claimed he had forced her to have sex when they were both students at Branford High School. As a condition of receiving the report, Chambers promised not to publish it until after an arrest had been made. But that didn’t mean there were not other uses to which the report could be put. Bailey typed the woman’s name into Facebook, discovered that she had an account, and friended her, letting her know she was a reporter covering the murder. After Clark’s arrest, Bailey and Chambers wrote a story without using the woman’s name. “I can’t believe this is true,” they quoted the woman as writing on her Facebook page. “I feel like im 16 all over again. Its jsut bringing back everything.”

The revelation that the Independent had the police report created a media stampede, Bailey said later. “People were calling us, begging us for this police report,” she told a researcher for Columbia University. “The New York Times came in and practically tried to arm-wrestle Paul.” The Independent withheld the fiancée’s name, a decision Bailey wrote that she had no misgivings about even though the woman later appeared on network television and identified herself.

By declining to name Raymond Clark until he had actually been charged with a crime, and by withholding the identities of the two women, Paul Bass had made a statement about what kind of news organization he wanted the Independent to be and what kind of journalism his community could expect from the site. Protecting the two women at a time when only the Independent knew who they were was the more straightforward of the two decisions. Any news executive who cares about journalistic ethics — or, for that matter, basic human decency — might have made the same call. But keeping Clark’s name off the site even after the New Haven police had put it in a press release, and even after the police chief had freely discussed it at a news conference — well, that was an extraordinary decision. Many journalists would argue that a news organization has an obligation to report the name of someone who might soon be charged with murder when the police have very publicly placed that name on the record. But Bass clearly has a different way of looking at such matters.

Weeks later, in a conversation at his office, Bass wondered if he had done the right thing while simultaneously defending his decision. “I still believe it’s a complicated question. I still believe we could definitely be wrong,” he said. Yet, as he continued, he didn’t sound like someone who thought he might be wrong, even as I suggested to him that his decision to withhold Clark’s name could be seen as something of an exercise in futility. “I’m in no way moving toward the idea that we should have run the name. I see no reason for putting the name out sooner. Nothing served,” he said. “I agree with you that it was futile. The name was out there. But we are still a news organization with standards.”

Those standards, I came to realize, are rooted not just in Bass’s view of journalism but in his sense of place, and even in his spiritual beliefs. The Independent is a news site, but it’s not just a news site. It is also a gathering place, a forum for civil discussion of local issues, and a spark for civic engagement. It is a mixture that reflects Bass’s interests: a multifaceted approach to community journalism — to community and journalism — that has been visible in his life and work from the time he began writing about New Haven.

Also published at WGBHNews.org.

Hyperlocal news, civic engagement and spirituality

Banyan tree
Banyan tree

Is there a connection between hyperlocal journalism, civic engagement and spirituality? Not directly. But in “The Wired City” I argue that New Haven Independent editor Paul Bass’ emphasis on community and right actions are tied to his involvement in Judaism.

In Haverhill, Massachusetts, Banyan Project founder Tom Stites is working to launch Haverhill Matters, the first of what he hopes will be a network of cooperatively owned news sites, in line with the way Unitarian Universalist congregations govern themselves.

Stites, among other things, is the retired editor of the UU World, the denomination’s quarterly magazine. In the current issue, I write about my fellow UU Stites:

Although both Haverhill Matters and the Banyan Project are purely secular endeavors, Stites sees some parallels between his idea and Unitarian Universalism’s Fifth Principle: “The right of conscience and the use of the democratic process within our congregations and in society at large.” “If you think of news communities and religious communities — meaning congregations — as comparable, the authority of the congregation comes from its members,” says Stites. “It’s a democratic institution, things are decided by discussion and vote. With the co-op model it’s the closest in all possible ways to the congregational polity model. There really is a real congruence there.”

I also offer some thoughts about the New Haven Independent and community-building as well as The Batavian, whose publisher, Howard Owens, sees a strong, locally owned business community as a key to fostering civic engagement. I hope you’ll take a look.

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

Matt DeRienzo has left the building

Matt DeRienzo
Matt DeRienzo

Matt DeRienzo, the top editor at Digital First Media’s Connecticut properties, including the New Haven Register, has taken a buyout offer and left the company, according to Paul Bass of the New Haven Independent.

DeRienzo, 38, had worked at various permutations of DFM for the past 11 years. In his early days, he once told me in an interview for my book “The Wired City,” his tasks included making sure the chain’s newspapers didn’t post too much content on their websites so that customers wouldn’t have less incentive to buy a paper. Toward the end, under DFM chief executive John Paton, DeRienzo was a leader in nudging his journalists away from print into the digital age. He writes:

I’ve come to know hundreds of people who have dedicated their lives to journalism, who work long hours for low pay, and put up with all kinds of crap (including plenty from me!) year after year. Cynical exteriors aside, at the heart of it, they care about strangers and are in journalism to improve people’s lives.

For the time being DeRienzo is doing some writing for CT News Junkie, a for-profit website that covers Connecticut politics and public policy.

DeRienzo will be succeeded at DFM’s Connecticut publications by Mark Brackenbury, someone who — in my one brief encounter — impressed me as an editor who cares about journalism and communities.

As I wrote for The Huffington Post earlier this year, DFM seems to be on the verge of breaking up and disappearing; the company’s financial problems had a serious effect on DeRienzo’s ability to carry out his vision. Yet in Bass’ Independent story, Paton sounds as charged up as ever, saying the company will move forward once a buyer for the chain is found.

I hope Paton is right. And best wishes to Matt, one of the good guys in our field.