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Creating a Global Fund for Investigative Journalism (2019)

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Creating a Global Fund for Investigative Journalism (2019) Creating a Global Fund for Investigative Journalism Ellen Hume and Anya Schiffrin April 2019 1 TABLE OF CONTENTS Executive summary ....................................................................................................................................... 3 Introduction .................................................................................................................................................. 4 Challenges of creating a Global Fund for Investigative Journalism .......................................................... 7 Revenue streams and structures ............................................................................................................... 10 Overview: Europe ................................................................................................................................. 10 Scoop ................................................................................................................................................. 12 Overview: The USA ............................................................................................................................... 12 Community Foundations: a mix of fines, donations ...................................................................... 13 Potential funding streams ................................................................................................................ 14 Taxes ............................................................................................................................................... 14 Canada Media Fund (CMF) ........................................................................................................ 14 A Tax on Tickets Sales at the “Global Games” .......................................................................... 15 Exploring recovered assets as a funding source .......................................................................... 17 Corporate fines from corruption settlements ............................................................................. 19 Other court distributions............................................................................................................... 20 Direct foreign aid and international development organizations ..................................................... 20 Private and corporate philanthropy .................................................................................................... 20 Membership and subscription models ............................................................................................... 21 Lottery proceeds and sovereign funds................................................................................................ 21 The Alaska Permanent Fund (“APF”) ............................................................................................ 22 Corporate Social Responsibility and cause marketing .............................................................................. 23 The Unique Opportunity of the tech platforms as a revenue source ...................................................... 24 Making the case: new urgency, new tools ................................................................................................ 26 Countering Russian disinformation ..................................................................................................... 27 Impact assessment ............................................................................................................................... 27 Media Cloud: tracking the influence of an investigative story .......................................................... 27 Some fundamental goals and principles ................................................................................................... 28 Mechanisms for the Global Fund for Investigative Journalism ................................................................ 29 The Global Fund to Fight Aids, Tuberculosis and Malaria (GFATM) .................................................. 29 Recommendations, questions, and next steps ......................................................................................... 31 Appendices .................................................................................................................................................. 33 What is Facebook actually funding with its new Journalism Fund? .................................................. 33 The Tech Dividend Funds .................................................................................................................... 35 Google News Initiative: a broad umbrella of tech-oriented journalism ........................................... 36 New Jersey: A mix on bandwidth sales and public subsidies............................................................. 38 Investigative journalism support in Germany..................................................................................... 40 France newspaper support .................................................................................................................. 42 Funding Canadian media ..................................................................................................................... 43 Kazakhstan: Problems with asset returns ........................................................................................... 45 EU Fund for Investigative Journalism IJ4EU ....................................................................................... 46 Best Practice: Journalism Funding ....................................................................................................... 51 GFMD Problem Statement: the Media Landscape ............................................................................. 48 Corporate Social Responsibility: Three Examples .............................................................................. 51 Acknowledgments ...................................................................................................................................... 52 2 Executive Summary This report was prepared for a convening in Perugia, Italy on April 5, 2019 by Drew Sullivan of the Organized Crime and Reporting Project (OCCRP) and Mira Milosevic of the Global Forum for Media Development (GFMD). This meeting will consider how to establish a Global Fund for Investigative Journalism, either as a free-standing trust fund or foundation, or as a sub fund attached to other international funding organizations. Because corruption is global, confounding national and regional responses, journalists often work in networks, and across borders, to challenge these abuses of power. The commercial marketplace for sustaining this kind of journalism is completely inadequate. However, existing national and regional funding mechanisms also fail to sustain the watchdogs who are our front line of defense against injustice and impunity. Working together, rather than on parallel tracks to create multiple global funds that compete for the same money, is necessary. The timing, potential, and urgent need for a journalism fund are clear. We believe the fund should be a mixed basket of multiple public and private sources, in order to be sure no one donor influences the journalism produced from it. Ethical considerations must be addressed, to prevent “bounty journalism” that distorts journalism subject choice, content and reputation. Instead of competing with existing journalism grant-making sources, the Fund should attract new streams of income into a mixed basket, from such potential sources as: --The tech sector, including the platform companies Facebook and Google --New taxes on media mergers, sports tickets, and other sources --Participating governments’ recoveries from corporate fines and other corruption litigation • For example, a portion of corporate fines recovered by the U.S. Department of Justice goes into a 3% fund to support future investigations, and it isn’t always dispersed fully within the DOJ. Couldn’t an argument be made that some of this should go to supporting investigative journalism, which helps originate such investigations? --New philanthropy that isn’t currently funding journalism but which wants to address “fake news,” filter bubbles, human trafficking and abuses of power, while supporting democracy and the rule of law --Other courts, government agencies and lawyers who recognize the role of investigative journalists in instigating the cases they pursue. We examine multiple examples of how government funds such as direct grants, taxes, and court distributions can be mixed into a pooled basket with money from philanthropy and corporate contributions. This dissipates the responsibility of the donors for the specific content of the journalism, which is a key political consideration. This is happening even in the US, with community foundations, for example, despite the American journalists’ aversion to accepting government money. The structure of the global Fund could be horizontal—giving specified types of grants anywhere in the world—or vertical, like the Global Fund to Fight Aids, Tuberculosis and Malaria (GFATM) which allocates the money through national organizations. Pooling recovered assets, corporate fines and other government funding, and distributing grants from this basket, will succeed only if the critical question of sovereignty is resolved. Under existing international rules, recovered assets must be returned to the nations from which they came. Donors also like to feel they are
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