Journalism has seen a substantial rise in philanthropic spending over the past 5 years, a study says
A study points to a “substantial” increase in philanthropic funding for journalism over the past five years, particularly to outlets that serve poor and minority communities
NEW YORK — There has been a “substantial” increase in philanthropic spending for journalism over the past five years, particularly outlets that serve poor and minority communities, a report issued on Thursday said — but journalists need to tighten ethical rules that govern the new spending, it recommended.
The struggling news industry is increasingly relying on donations and subscriptions, although it hasn't come close to making up for the collapse in advertising that has led to the dramatic drop in outlets that cover local news.
More than half of funders surveyed by NORC at the University of Chicago said they have increased their journalism grants. Most nonprofit and for-profit news organizations report more funding.
“We see many more people — and that includes people who work in philanthropy — being interested in a stronger civic infrastructure by funding local news,” said Sarah Alvarez, founder of Outlier Media, a Detroit-based news source that started in 2016 and now has 16 employees.
Partly because it's a relatively new area of giving, it's hard to get a reliable count of how much philanthropy funds journalism. A report by Boston Consulting Group estimated $150 million per year is given to nonprofit news outlets. The same report said that industry needs up to $1.75 billion.
A major drive with a goal of raising $1 billion for local news is expected to be announced this fall, the NORC report said.
“It's significantly more important than it was eight years ago,” said Tom Rosenstiel, a University of Maryland professor who worked on the report,
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