In Commonwealth magazine there was an interesting article about how the very best ownership model for newspaper could be owned by a non-profit foundation. In the article Dan Kennedy writes…
“Ownership, though, remains a hot topic—not just in Boston, but nationally. The Times Company, like Gannett and McClatchy, is a publicly traded corporation thats obliged to deliver the highest rate of return for its shareholders. Though the Times Company is somewhat insulated from the pressures of the market (chairman Arthur Sulzberger Jr. and his family control the voting shares of stock), publicly traded companies in general have come under fire for their management of newspapers. Increasingly, the typical profit margins of corporate-owned newspapers—20 percent or higher—are seen as inconsistent with well-funded public-service journalism.”
I think there is very compelling evidence that a nonprofit foundation can run a successful newspaper, but I also don’t believe that a non-profit is the ownership method that we should try to get all newspapers to convert to. I’ve had dealings with newspapers owned by a publicly traded corporation, a newspaper owned by a single family (person) and newspapers owned by a non-profit foundation. It’s true that a profit margin can get in the way of running a journalistic community oriented paper, but without a profit all of the newspaper ownership models will fail except those with a rich owner willing to lose his fortune keeping a newspaper alive.
I once met the publisher of a newspaper owned by a non-profit foundation. He told me they were a for-profit newspaper owned by a non-profit foundation community foundation. Without the newspaper the foundation doesn’t have anything to give away and the more money the newspaper makes the more the foundation can invest in the community. But, corporately owned newspapers and family owned newspapers are also very involved in their communities and greatly contribute to community organizations.


