Even as the internet has made information dissemination more democratic, online news, social media, and streaming services have shifted audiences away from traditional outlets, cutting into their revenue. Print media has been hit hardest, with shrinking circulation and ad income leading to cost cuts, mergers, and closures. Even digital traffic to newspaper sites is dropping, with fewer unique monthly visitors.
Local nonprofit news outlets are stepping in as a fresh, mission-driven alternative.
Why does nonprofit news have this new place at the media table?
Nonprofit News Has Helpful, Alternative Funding Streams
Nonprofit news organizations are usually funded through grants, donations, and memberships, allowing them to operate without as many financial pressures as traditional models. Because of their funding, they can focus on public service and accountability without the constraints of a necessary focus on profit.
The number of nonprofit news organizations has been increasing, with many filling the gaps left by the decline of local news coverage. Since 2008, nonprofit newsrooms have been rolling out at a pace of a dozen or more annually.
Nonprofit News Shapes Perceptions about Credibility
With trust in traditional media declining due to concerns about bias and misinformation, nonprofit news organizations are stepping in. It’s clear that many audiences perceive nonprofit news as trustworthy. Proving trustworthiness, in 2024, nonprofit outlets like City Bureau, Invisible Institute, and ProPublica were awarded Pulitzer Prizes.
Focus Leads to Impact
Several nonprofit news organizations have chosen to focus on a particular audience niche to make a powerful impact. The Texas Tribune covers Texas politics and public policy in a nonpartisan way, gaining national recognition for its investigative journalism, which holds public officials accountable. The Marshall Project explores criminal justice issues. The 19th* focuses on marginalized communities.
The nonprofit news model is not only for smaller markets. The Salt Lake Tribune shifted to operating within the framework of a nonprofit model in 2019, becoming the first major U.S. newspaper to do so.
What can media companies learn from this trend?
The Partnership Model Can Generate Funding without Limiting Autonomy
The Lenfest Institute for Journalism has supported nonprofit journalism through its ownership of The Philadelphia Inquirer. This partnership lets the Inquirer remain a for-profit public benefit corporation while benefiting from the Institute’s help with digital advancement and community engagement.
Another partnership model is The Maine Trust for Local News, a subsidiary of the National Trust for Local News, which formed in 2023 when the National Trust acquired Masthead Maine to prevent financial decline and keep up robust local news coverage. The Maine Trust owns Maine’s largest daily newspaper, the Portland Press Herald, three other daily papers and 16 weekly newspapers. This network of publications provides local news coverage to communities throughout Maine.
Helpful Resources Exist for Transitioning to a Nonprofit Model
Nonprofit news organizations need to show that their main goal is educational, charitable, or focused on promoting social welfare, while also operating in a way that benefits the public. Additionally, achieving tax-exempt status as a news organization involves thorough attention to legal requirements and regulations.
For media leaders considering a transition to a nonprofit model, the Institute for Nonprofit News (INN) delivers support to nonprofit news organizations. Among its offerings is a Quick Guide for transforming a for-profit news outlet into a nonprofit; it includes critical legal and operational details of the conversion process.
Challenges Must Be Kept in Mind
Many challenges exist for nonprofit news. Securing consistent funding, for example, is a huge hurdle. With fierce competition for grants and donations and lack of government support, building a solid funding model takes strategic planning and strong donor relationships. Additionally, in today’s age of misinformation, nonprofit news outlets must prove their commitment to accuracy, fairness, and transparency to earn audience trust. They also need a strong online presence, clever marketing, and top-notch journalism to stand out.
Additionally, nonprofit news outlets must prove their commitment to accuracy, fairness, and transparency to earn audience trust. They also need a strong online presence, clever marketing, and top-notch journalism to stand out.
Nonprofit newsrooms with local focus or a strongly defined audience niche must also focus on metrics other than year-over-year growth to define success. INN reported 11% membership growth from 2022 to 2023, down from 17% the year before. This data points to a need for continued innovation and attention to evolving challenges.
Nonprofit news organizations need to measure engagement and impact, rather than scale. Did a particular story or coverage of a topic lead to measurable change in the community? Make sure your members are aware of this. For a local nonprofit news organization, managing churn is as important – perhaps more important – than simply growing the subscriber number. Look for metrics that show community impact and promote this impact in your marketing efforts.
Established Strategies for Balancing a Mission-Driven Focus and Financial Sustainability
Nonprofit news organizations need to balance staying mission-driven with staying financially sustainable. To do this, a few key elements are essential. First, there must be a clear mission that guides activities, outlines values, and focuses on community goals. Next, revenue streams must be diversified.
Strong governance is also crucial, with a responsible board, transparent financial reporting, and solid internal controls needed to ensure accountability. Nonprofit newsrooms must err on the side of disclosure, particularly when covering stories that involve their financial backers.
Finally, it is crucial to engage with the community and members of the board by listening to their needs. Making partners feel valued and understood is one key to maintaining the financial success of nonprofit news organizations.
Whether nonprofit news will be sustainable in the long run is still up for debate. But the organizations that are succeeding by focusing on their audience, being transparent about their funding, and covering compelling stories are laying the groundwork for an innovative and exciting future.