Donors Pledge a Half-Billion for Local News Operations

Two newspapers per week are closing in US
By Newser Editors and Wire Services
Posted Sep 7, 2023 5:55 PM CDT
Donors Pledge a Half-Billion to Preserve Local Journalism
The final editions of eight weekly newspapers rest on a table at the North Dakota Newspaper Association office in Bismarck, North Dakota, on Aug. 16. The papers ceased publication last month, with little local advertising revenue available and no one wanting to take the business over.   (AP Photo/Jack Dura)

The MacArthur Foundation is leading a group of donors that have pledged $500 million to help the struggling local news industry, hoping to seed outlets that can make up for those that have closed or been hollowed out over the past two decades. Led by $150 million donations by the journalism-focused Knight Foundation and MacArthur, the Press Forward initiative is focusing on the importance of news in communities and is bringing in funders whose primary mission hasn't necessarily been journalism, the AP reports. "This is hugely important, both practically and symbolically," said Tim Franklin, director of the Local News Initiative at Northwestern University's Medill journalism school.

The Carnegie Corp., the Democracy Fund, the Ford Foundation, the Robert Wood Johnson Foundation, and MacArthur are among a group of 20 initial funders. Philanthropies that recognize the need to strengthen democracy are beginning to see that progress on many different issues depends on the public's understanding of facts, said John Palfrey, MacArthur Foundation president. Driven largely by a collapse in advertising markets, the number of newspapers in the US fell from 8,891 in 2005 to 6,377 last year, according to a Northwestern study. Papers are continuing to close at a rate of two a week, Franklin said. Many that survive, particularly in larger markets, are shells of themselves. The estimate of 75,000 journalists who worked at newspapers in 2005 was down to 31,000 last year.

While there are many experimental efforts to fill the news void, there is still no clear path to making news a thriving business again. "I don't think we have the answer," said Alberto Ibarguen, president of the John S. and James L. Knight Foundation. "I don't think we have the next thing." The $500 million in pledges pale in comparison to the $1 billion investment goal Ibarguen publicly identified last month. That "aspirational" goal wasn't met because some hoped-for pledges by some corporations and individuals did not come through, he told the AP. He said he expected other funding will be added in the coming months to boost the commitment beyond $500 million.

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While philanthropic funding has helped, experts say it's important that new outlets can survive after grant money runs out. Some of the new funding efforts are designed specifically for that goal. They will support plans, for example, to provide legal services, publishing tools, and ways to enhance revenue that can be shared by several outlets so there is less duplication in spending for startups. "I really believe in independent journalism," Ibarguen said. "You cannot be independent if you are not sustainable." Franklin said he is more optimistic now than he has been in several years—in part because of new outlets that have figured out a way to exist without losing money. Two examples he cited were the Shawnee Mission Post, a digital site that covers a suburban county in Kansas, and the Richland Source, which covers north central Ohio.

(More local news stories.)

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