Foundation and donor support: A primer

Philanthropic support of journalism isn’t new (see: NPR, PBS). But the role of foundation and major individual donor support has grown dramatically in the last decade in terms of both the number and type of outlets supported. The rise of philanthropic support for news coincides with the decline of  advertising and circulation revenue in the marketplace.

This new application of the old mission-centric model (financial support from small-dollar donors, major wealthy donors and foundation grants on top of advertising, subscriptions and other revenue streams) offers all sorts of new opportunities for funding journalism sustainably. It also raises some ethical questions that can potentially challenge reader trust.

Whether you’re a nonprofit or a for-profit, however, being open to creative ways to solicit philanthropic support is an example of Table Stake No. 5, the critical need for news enterprises to diversify revenue. If you haven’t read that section, do so first.

Donor-funded media often focus on specific thematic content that aligns with the interests of foundations and individuals who offer financial support. That alignment can support extraordinary work, but sometimes also draws sharp critique. Advocates for donor- and foundation-backed journalism argue that this model allows their staff to deepen their work with fewer organizational conflicts of interest. Others question how editorial independence can exist in such a structure and whether donors should have the power to focus journalism on the issues they favor, such as government accountability or healthcare, for example. To counter some of these concerns, major donors like The Knight Foundation have shifted their financial support to operational costs, rather than specifically funding the doing of journalism.

Few organizations pursue a purely donation-backed approach, though any organization that accepts outside money invites questions of independence and editorial control. Maintaining journalistic integrity and communicating organizational practices to readers becomes an essential part of healthy nonprofit news.

We’ll examine the major facets of this topic, including the following major points:

• Nonprofits that can capture their audience’s support and cultivate relationships with big donors provide a sustainable model for journalism.
• These sources of financial support come with their own advantages, including greater freedom to go deep on subjects and individual stories.
• Nonprofits that accept donor funds and grants face ethical questions about editorial independence, similar to for-profit outlets that publish paid content.
• Transparency about funding sources is critical for sustaining reader trust.