Rebuilding Local News: Leveraging Commercial and Philanthropic Forces for Sustainable Journalism

The Aspen Institute is a global nonprofit organization that focuses on various initiatives, including journalism, education, and financial security. The relevant article covering funding types for journalism can be found on their website, specifically in a piece by Jim Friedlich, Executive Director & CEO of The Lenfest Institute for Journalism, which is closely associated with The Aspen Institute.

Jim Friedlich emphasizes the need for both commercial and philanthropic forces to rebuild local news at scale. The current divide between for-profit and nonprofit business models in American local journalism is seen as unnecessary and unhelpful. Nonprofit news media, although growing, is still too small to adequately solve the problems of local news, and for-profit news media must reinvent itself to survive and thrive.

The challenges in funding local news are multifaceted. First, there is a need to significantly increase major philanthropy, aiming to grow annual local news funding from approximately $200-$300 million to a billion dollars. This figure, though substantial, is still dwarfed by philanthropic funding for healthcare, education, the environment, and the arts, all of which are partly enabled by public-service journalism.

Second, increasing individual reader giving through memberships, subscriptions, and grassroots fundraising is crucial. The potential for individual giving is vast but largely untapped. For example, The Boston Globe, a well-run regional newspaper, has about 235,000 digital subscribers, most paying the full price of $1 per day.

Third, publishers need to better build earned revenue such as advertising, events, and sponsorship for both for-profit and nonprofit news organizations. Local news advertising should not be given up for dead, especially when local news attracts coveted audiences in many communities.

Lastly, exploring new financing and ownership structures to fund local news acquisitions is essential. Impact investing, a well-established practice in other markets like affordable housing and nature conservancies, holds huge potential for local news.

Key recommendations from local news summit conversations include focusing on solutions rather than problems, investing in training and skill-building across the revenue spectrum, and rethinking local advertising strategies. News organizations should pivot their funding and revenue messaging from “saving journalism” to “supporting democracy,” emphasizing their role in serving communities and supporting democracy.

Moreover, expanding impact investing is critical. Publishers should educate investors on how local journalism can meet their impact goals and devise strategies for how public policy can work with private investment to incentivize transactions.

In conclusion, rebuilding local news requires a multifaceted approach that leverages both commercial and philanthropic forces. By focusing on solutions, investing in skill-building, rethinking advertising strategies, reframing the narrative around supporting democracy, and expanding impact investing, there is a significant opportunity to bring new types of capital and impact investors into the journalism space. This comprehensive strategy can help local news not only survive but thrive, serving the critical information needs of communities across the country.