My two recent posts about philanthropy and the news touched a nerve among not-for-profit news gatherers, leading to a podcast conversation with Scott Lewis, head of Voice of San Diego (starting at about :22), and a response by Steve Waldman. Laura Walker, the CEO of New York Public Radio, also asked to respond here. Laura is a brilliant businesswoman who could run rings around any for-profit media executive. She also made a big announcement today about a $10 million grant to fund digital innovation. I don’t usually hand this space over to anyone else, but I happily give it to Laura here:
Your post “Philanthropy and News” and related tweets have sparked an important conversation about the role of philanthropy in journalism. I wholeheartedly agree with you that philanthropy should help build sustainable models in journalism that have diverse revenue streams. As you often point out, business thinking and revenue generation are critical to the future of our industry.
But, I don’t agree at all with your statement: “Every time a rich person gives to a news nonprofit, a journalism startup loses its wings.” Philanthropic giving to nonprofit news doesn’t compete with investment in for-profit news startups. It’s not “an either/or” scenario as to who will survive. More importantly, philanthropic support for journalism has provided seed funding for successful models of nonprofit journalism, including public radio. Models of success do exist!
Here’s how I see it:
• Philanthropic grants are not taking away capital from startups. The motivations and reasons for venture funding are fundamentally different from philanthropy. Both can be an investment in the future of news and work together to enhance overall quality in journalism.
• Investment in nonprofit journalism can be an investment in sustainable journalism. Already today, philanthropy is seed funding important work and sustainability in journalism; just look at public radio, ProPublica and The Texas Tribune. To be sure, many nonprofit journalism enterprises have failed, and many don’t have business leadership. Just as with a for-profit investment, it is critical that philanthropic investors “kick the tires” on the leadership of nonprofits to make sure that a business plan has been created and sustainability can be achieved.
• Hands down, the most successful sustainable nonprofit model is public radio, and it is too often overlooked by you and others. Public radio, with some 1,200 reporters including NPR and stations around the country, has diverse revenue streams, uses venture philanthropy, and through collaboration offers national scale, local relevance and powerful enterprise journalism.
Let’s take New York Public Radio as an example:
Diverse Revenue Streams
• Our journalism and radio programs are sustained through the contributions of 175,000+ members, corporate underwriting, events, fees from other public radio stations, as well as institutional giving and major donor gifts.
• Institutional giving and major donor gifts are just pieces of a diversified revenue model that is built to promote long-term sustainability and impact.
• Philanthropy often seeds new ideas and helps create an infrastructure for them.Then, we sustain these efforts over time in concert with other diverse revenue sources. Philanthropic contributions from the Charles H. Revson Foundation, John S. and James L. Knight Foundation, Ford Foundation, Jerome L. Greene Foundation, Geraldine R. Dodge Foundation, Alfred P. Sloan Foundation and others have acted as venture funding to seed projects like our Stop and Frisk coverage, our Data News unit,Radiolab, The Takeaway, and our New Jersey news unit, as well as the creation of digital apps that are designed for how people consume news today.
• This approach fuels just the type of innovation you are calling for and has resulted in journalism that has won many awards, including three Alfred I. duPont-Columbia Awards and seven George Foster Peabody Awards in the last several years.
• “Philanthropy and News” also highlighted the need for collaboration within the news ecosystem – to both innovate and best serve audiences. At its heart, the public radio system is based on a collaborative reporting model – stations working with NPR and other national outlets to cover breaking news and to offer an expansive national report.
• Then, there are projects and efforts within the system like Fronteras along the border, The Takeaway and the New Jersey News Commons, in which our New Jersey Public Radio service plays a leading role, working with NJ Spotlight, Montclair State University’s journalism program and other news providers, small and large, new and established.
• Sometimes we compete and sometimes we collaborate, but as a recent J-Lab study noted: “Public media outlets play an important role for news startups. A partnership with a public broadcaster amplifies their journalism and validates their efforts in ways that can help their sustainability.”
We both agree that building sustainability in journalism is essential. We should learn from all the models before us – the ones that failed, the successful ones that currently exist, and the experiments being taken up by for-profit startups and fueled by philanthropy in the nonprofit sector. For an example of sustainable nonprofit journalism, just listen to your radio.