When you read a magazine or newspaper, you probably don’t spend too much time thinking about how the people that created the publication make a living. Well, in most cases, your favorite magazine, newspaper, and website are supported by advertisements. Businesses pay big bucks to place their ads somewhere that people of a certain demographic will notice.
Think about this concept for a moment. It’s pretty amazing, and we take it for granted.
This traditional, advertising-fueled business model has some drawbacks: ads are distracting, they don’t necessarily translate well to online media venues, and fewer businesses are willing to advertise in a down economy. Therefore, easy access to information, arguably our most valuable and coveted commodity, is threatened.
What are some alternative business models? I am still trying to figure out a for-profit business model for media that doesn’t involve advertising. However, some publications are trying the non-profit business model on for size, with great success.
(Pictured at left, Monkey begging for money, by I See Modern Britain)
The best example of a non-profit publication is Mother Jones, “a nonprofit news organization that specializes in investigative, political, and social justice reporting.”
I love their attitude: “Why should you read or support us? Because ’smart, fearless journalism’ keeps people informed–’informed’ being pretty much indispensable to a democracy that actually works. Because we’ve been ahead of the curve time and again. Because this is journalism not funded by or beholden to corporations. Because we bust bullshit and get results. Because we’re expanding our investigative coverage while the rest of the media are contracting. Because you can count on us to take no prisoners, cleave to no dogma, and tell it like it is. Plus we’re pretty damn fun.”
Starting from scratch, establishing your publication as a non-profit
The problem with starting a publication today and establishing it as a non-profit is that this model is still considered very experimental. Sure Mother Jones has been able to do it for 30 years, but not too many (actually, none that I know of) other general-interest, non-scholarly publications have been able to successfully use this model.
Many literary magazines and scholarly journals are supported by a non-profit business model, but these publications have easier access to grants and funds. When the content is clearly educational or scholarly, arts and education organizations are more likely to fund the publication.
Why would an organization like the National Endowment for the Arts fund Cosmopolitan, for example? The content must attract money from the organizations that have money to give.
Switching from for-profit to non-profit
In an article for the San Francisco Chronicle, staff writer Joe Garofoli writes, “…switching from a profit to nonprofit model isn’t easy – at least on the mass-market scale of many publications. Two Yale scholars recently estimated that it would take a $5 billion endowment to maintain the estimated $200 million annual newsroom budget for the New York Times.”
(Pictured at right: Adface, by mauren veras)
Magazines and newspapers are so used to using an advertising-driven business model that no one has spent any time thinking about alternatives until now, when the media industry is in trouble. Publications are so used to corporate support and so dependent on advertising revenue, that the change from for-profit to non-profit would be drastic and immense.
The effects of preconceptions about non-profits
I have considered turning Too Shy to Stop into a 501 (c) (3) non-profit organization that supports the development of young writers and journalists. In fact, the more I think about it, the more I believe that this seems like the perfect model for the website.
However, I have some issues with the label “non-profit”. When I think non-profit, I think of organizations that help the poor or underprivileged. I don’t necessarily think “news” or “journalism”. I’m a good little capitalist, and I don’t know if I can sit with the feeling that I run an organization supported by donations.
Can anyone refute or support my preconceptions? Does anyone have any opinions about the non-profit business model? I’d love to hear your thoughts.
