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Does Non-Profit Media Have a Competitive Edge?

By David Weir | May 2, 2008

Last night, here in New York City, the National Magazine Awards were announced. Among the usual suspects (The New Yorker, National Geographic, Vanity Fair, Atlantic, Rolling Stone) were several winners with an alternative business model.

The non-profit Mother Jones won the award for general excellence in its category (100,000-250,000 circulation); and the essentially non-profit weekly, The Nation, won in the public Interest category for a powerful investigative report on the plight of vets.

Meanwhile, the non-profit National Public Radio (NPR) yesterday aired an investigative story today partnered with the non-profit Center for Investigative Reporting (CIR) to produce an expose of a dubious “robocall” service tied to the Clinton campaign.

Long-time editor and emeritus publisher Victor Navasky used to like to joke that The Nation, which is the country’s oldest (1865), continuously published newsweekly, was also “the oldest for-profit publisher to never actually turn a profit.”

That may have changed slightly in recent years, but the magazine is also sustained by the non-profit Nation Institute, a membership organization that also receives foundation grants. Meanwhile, the magazine’s online component is one of the most dynamic websites I’ve yet seen in the magazine industry.

Mother Jones is operated by the Foundation for National Progress, which raises money from individuals and foundations to support the magazine.

CIR is an independent non-profit that attracts funds from individuals and foundations to supplement the fees it earns for its investigative stories. NPR exists on a mix of “underwriting” income from corporations, grants from foundations, individual contributions, and a small amount of government funding.

All of these groups, as well as several others, continue to practice excellent journalism without being tied to the quarterly profit cycle that bedevils mainstream news divisions. Could they provide an alternative model to the businesses whose decline we’ve grown accustomed to documenting here in this space?

This much is clear. Those running Mother Jones, CIR, NPR and The Nation will need to fully grasp the magnitude of the transformation sweeping all media in order to continue their great traditions. Accordingly, they, too, are exploring the online options for ways to adapt and survive.

In other words, no media company, of any size or business model, can escape the twin forces of globalization and technological change. Fortunately, these four groups have relatively strong brands that already have some visibility in overseas markets. The question I have is will they grow into global (online) brands, or remain U.S.-centric?

It’s the same question every newsroom must grapple with: How to adapt to the new environment… Stay tuned.

***

Notes: I not only have deep ties to the four organizations profiled above, I support all of them enthusiastically. As a co-founder, during CIR’s first 12 years, 1977-89, I served as executive director. I remain on its Board of Directors. For a couple years in the early nineties, I was managing editor and/or investigative editor for Mother Jones. Within the NPR system, I was the interim executive producer news and public affairs director for KQED in 1994, and executive vice-president of KQED, Inc., in 1995. I’m currently on the editorial board for The Nation. None of these organizations provide me any compensation.

In addition to serving as a BNET Media analyst/blogger, David Weir is a veteran journalist and the author of several books. Weir is a co-founder and vice-president of the Center for Investigative Reporting, as well as an editorial board member of The Nation.

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  •  
    1

    yogeshk

    05/02/08 | Report as spam

    Informative Article

    This is great and informative article. David, really appreciate it.

  •  
    2

    yogeshk

    05/02/08 | Report as spam

    RE: The Nation, Mother Jones, NPR, and CIR: The Non-Profit Business Model

    David this is really great article.

  •  
    3

    hotweir

    05/04/08 | Report as spam

    Thank you!

    It is nice to hear from people who enjoy this kind of blogging, as I often push the envelope beyond what conventional wisdom dictates "business writing" is all about. From my long career in the private sector, I know that executives and others inside companies have broad-ranging interests and should not be condescended to, as if all they care about is the stuff any MBA could crank out! Not true! I have had far more execs approach me to ask about opportunities in the non-profit world than the other way around.

  •  
    4

    koenjin

    05/02/08 | Report as spam

    RE: The Nation, Mother Jones, NPR, and CIR: The Non-Profit Business Model

    It is great for us outside the US to be able to listen to NPR and read the Nation
    on their websites. Go global!

  •  
    5

    hotweir

    05/04/08 | Report as spam

    Outside US readers

    Thanks for visiting! I treasure readers from around the world. This is a parochial society filled with people focussed only on themselves. It is often said that there is an "other America" beyond the war-mongering, voracious monster that so offends people everywhere else, even as they remain wondrously hopeful of emulating out financial success. A key in understanding this "other America" is to follow institutions like those I've written about here. The NGO/NPO community may be only about 5% of our national GNP but it is 95% of our social conscience.

  •  
    6

    danogram

    05/04/08 | Report as spam

    RE: The Nation, Mother Jones, NPR, and CIR: The Non-Profit Business Model

    Maybe it's just me, but looking at the list of ???journalist??? organizations sited, I wonder if there might be another message here. The commercial value of these outfits is not there; their appeal seems to miss the main stream of the US market in which they operate. After all, if their product was in such demand, wouldn't they easily become independently profitable? Can one be successful entering a global arena while living on subsidies to survive at home? Communities throughout this country have long subsidized symphonies, museums and such... most people are comfortable with that. We feel there is a cultural value in the arts that needs the sustenance and we are generally happy to provide it. The wide field of news reporting, including journalism, is not the same thing. Maybe it's just me, but I suspect that the list you've reported on has long drifted from concern about creating a product with wide appeal, in favor of generating material deemed ???excellent??? by a limited few.

    In short, I rely heavily on others more knowledgeable and gifted to help me understand what is valued in the arts. But I understand very well what I value in media and journalism, and I frequent the media that provides it for me. Sometimes I actually buy things from their commercial sponsors when I do.

    Free enterprise and the competition it generates excites excellence. I don't believe that non-profit is necessarily a good business model for jounalism.

  •  
    7

    hotweir

    05/04/08 | Report as spam

    But...I object

    You see no need to rely on skilled journalists to find out what is happening in the world? Why separate the arts from one of the most difficult of all professions -- investigative reporting? To be straight, there is no subsidy here. people voluntarily support these groups just as others do their churches or the arts. They do not cost any taxpayer anything. Most staff earn far below their market value.

    Yous is the kind of logic that is bringing us environmental ruin, failing schools, and poverty. The next thing you'll say is the poor have only themselves to blame. Wake up and read these publications.

    You might learn something!

  •  
    8

    danogram

    05/06/08 | Report as spam

    What a delightful can of worms you open!

    To learn requires challenge and the worms of environmental ruin, failing schools, and poverty are among the most fertile of challenges. But, for my part, I will continue to look for credibility, which seems to me overly challenged in these publications.

  •  
    9

    S.Howard-Sarin

    05/05/08 | Report as spam

    RE: The Nation, Mother Jones, NPR, and CIR: The Non-Profit Business Model

    One of the luminaries in early tech media (Bruce Koon) jumped from the sinking ship of Knight-Ridder to our local public radio operation. Maybe he knew something.

  •  
    10

    hotweir

    05/05/08 | Report as spam

    Bruce Koon

    It is true. Bruce is now radio news director at KQED, after Knight-Ridder sold all of its newspaper and web assets to McClatchy. But I also know of all manner of radio and newspaper people going in the other direction!

  •  
    11

    AMPorterfield

    05/07/08 | Report as spam

    RE: The Nation, Mother Jones, NPR, and CIR: The Non-Profit Business Model

    An old friend and former TV investigative reporter (from a time when that wasn't almost oxymoronic), Charles Lewis, gave a talk at Harvard on the strength of non-profit journalism. Recommended reading, at www.hks.harvard.edu/presspol/research_publications/papers/working_papers/2007_3.pdf.

    While the non-profit model certainly frees an organization from demanding shareholders, analysts, quarterly foci, etc., it's naive to think that a non-profit is free of all business issues. But there is another aspect: non-profits have a kind of gravitas that lends credibility to their work. Neocon criticism of NPR notwithstanding, it's harder to prove a bias when you've got donors from all walks of life. And, with the power of the internet, you don't have to convince a skeptical editor at a newspaper to get your story published.

  •  
    12

    hotweir

    09/27/09 | Report as spam

    RE: The Nation, Mother Jones, NPR, and CIR: The Non-Profit Business Model

    You are spot-on, Andrew, that NPOs are still businesses -- and they need to be run as such. I've heard journalists (most of whom have never worked on the business side) speak of grants as "easy money." There is nothing easy about raising grants, and nothing easy about sustaining a non-profit business organization. There is an advantage not having to pay certain taxes, but that often offset by poor business models, lack of diverse revenue streams, and a lack of professional management, from what I've seen over the years.

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