The Salt Lake Tribune Officially Becomes 501(c)(3) Nonprofit
The “nonprofit” theory of how to save legacy media is about to get a real world test case.
The Salt Lake Tribune is now a nonprofit, an unprecedented transformation for a legacy U.S. daily that is intended to bolster its financial prospects during a troubling time for journalism nationwide.
The IRS approved the shift in a letter dated Oct. 29, deeming The Tribune a 501(c)(3) public charity. That means supporters can start making tax deductible donations now.
The move from a for-profit model was spurred by Tribune owner Paul Huntsman, who, in agreeing to turn Utah’s largest paper into a nonprofit, is giving up his sole ownership.
“The current business model for local newspapers is broken and beyond repair,” said Huntsman, who also serves as The Tribune’s publisher. “We needed to find a way to sustain this vital community institution well beyond my ownership, and nonprofit status will help us do that. This is truly excellent news for all Utah residents and for local news organizations across the country.”
The Guardian announced a non-profit in 2017 and are famously run by a trust:
https://www.theguardian.com/gnm-press-office/2017/aug/28/the-guardian-announces-the-launch-of-a-new-us-nonprofit-to-support-story-telling-and-independent-journalism
Still the situation for media is tough. A lot of smaller magazines whether on the left or on the right were always funded as hobbies/passion projects/charity cases. This is true for The New Republic, the Nation, The National Review, the former Weekly Standard, etc. I suspect it is true for the more intellectual quarterlies like N plus One and Jacobin. The Federalist steadfastly refuses to disclose its funding sources. I suspect they have a lot right-wing rich people funding. Equally so, the London Review of Books is basically funded by their editor who is the heiress to a fortune.
American newspapers and magazines made most of their money from advertising. This was true from the most mainstream publication to the alt-weeklies like the Village Voice and Boston Phoenix. The only thing that changed was the kind of advertising based on the media and its audience. Or a disconnect. I still suspect that the people who read the Village Voice articles, ignored all the barely innuendo sex work ads which basically funded it.Report