A New Non-Profit News Venture – Without Millionaire Benefactors!
Alan Mutter over at Newsosaur gives us a great profile of a new non-profit news startup in Minneapolis called MinnPost that seems to be as good a hope as any to revive our failing news economy:
MinnPost, a scrappy news start-up in Minnesota, is beginning to show how to run a sustainable non-profit venture without depending on major philanthropic support.
And it is doing so in two ways: First, by keeping costs low. Second, by raising money almost continuously through such diversified initiatives as advertising, NPR-style user contributions and even an annual gala featuring organic-vodka martinis.
In other words, the highly regarded Minnesota news site is the antithesis of such large-scale journalism projects as Pro Publica, Texas Tribune and Bay Citizen, which at this writing all rely on multimillion-dollar endowments from wealthy individuals and institutions.
MinnPost not only started life without a multimillion-dollar nest egg but also is committed to fully supporting its ongoing operations without major philanthropic donations by 2012, says Joel Kramer, a former editor of the Minneapolis Star Tribune who launched the site in 2007.
Back when Propublica emerged we heard a lot of talk about how its model of non-profit news gathering was a harbinger for the future of news. And while they have given us a series of fantastic investigations, capped most recently by their explosive profile of corrupt hedge fund Magnetar, the uncomfortable fact remained: their business model depended on multi-million dollar grants from wealthy philanthropists. They were, by definition, not a sustainable project.
MinnPost, on the other hand, appears to be the first non-profit whose stated goal is to provide quality journalism free of massive philanthropic donations. They do so by a mixture of low overheads, low operating costs, and good old fashioned reader donations. One of my major criticisms of ProPublica, fantastic though they are, is the obscene six-figure salaries their reporters and editors make. MinnPost does away with these, but (and this should come as a surprise to the Wall Street banks who contend that multi-million dollar bonuses are the only way to secure “talent) the quality of their reporting does not appear to have suffered.
We’re all holding our breath to see what’s going to come of the bloodbath our legacy news media are swimming in (They lost 27% circulation in the past five years), but startups like MinnPost are a genuine ray of hope.