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Is There a Better Structure for News Providers? The Potential in Charitable and Trust Ownership Trust in Charitable and Potential The Providers? News Structure for a Better There Is Is There a Better Structure for News Providers? David A. L. Levy The potential in charitable and trust ownershipy Director Reuters Institute for the Economic turmoil in the news industry and opportunities to use digital Study of Journalism media to improve coverage of specific national and global topics, engage in specialised reporting techniques and improve local and hyper-local coverage have led many observers to suggest alternative ownership Robert G. Picard structures for established and start-up news organisations. Charitable Director of Research ownership structures and trust arrangements are frequently advocated. Is There a Better Structure Although interest in such organisations has grown, there has been Reuters Institute for the little evidence and knowledge about their organisation, governance Study of Journalism arrangements, operational issues and effectiveness, or their positions in for News Providers? law and public policy. Some discussions have been flawed by unbridled idealism and optimism, others by wishful thinking, and some by blissful Contributors ignorance and misconceptions. Nevertheless, the suggestion that alternative ownership and operational form may be useful for addressing Leonard Berkowitz The Potential in Charitable and Trust Ownership contemporary challenges is far too important to disregard. Karen B. Dunlap This book adds information, evidence, and knowledge to the dialogues Neil Fowler taking place. It explores the rationales and context of the push for charitable Edited by David A. L. Levy and Robert G. Picard and trust structures, how structures affect control and operations of news Jeanne-Emmanuelle organisations, and why they are important in the UK and elsewhere. It Gapsys-Hutin provides explanations of some of the most notable existing arrangements in the UK, France, Canada and the United States and how alternatively John Honderich structured start-up news organisations are being created in the digital Victor Keegan age. It draws upon the knowledge of leaders of those organisations, as well as researchers, to illuminate important challenges and issues facing David A. L. Levy these organisations, their advantages and disadvantages, the extent to Chuck Lewis which they serve the purposes and arguments made for charitable and trust ownership, legal and policy limitations on their operations and the Robert G. Picard prospects for their use in the current environment. “New ways of funding professional journalism in the digital age need to be explored in order to preserve its public role and function for democracy. This book gives a comprehensive overview and insight into financing journalism by foundations and other charitable institutions. It is a valuable source for media regulators, foundations and institutions and individuals engaged in journalism.” Prof. Heinz-Werner Nienstedt Former CEO Handelblatt A. L. Levy and Robert David by G. Picard Edited Department of Communication, Johannes-Gutenberg-Universität “The current crisis in the news media requires much more than mere tinkering with financial flows. This timely book makes an important and well-grounded analysis of the potential role of non-profit organisations in enabling a new professional journalism capable of engaging with the crucial political, economic and cultural issues of the 21st century.” Prof. Paschal Preston Director, STeM research Centre, Dublin City University ISBN 978-1-907384-03-5 9 7 8 1 9 0 7 3 8 4 0 3 5 Cover images © TBI Communications images Cover Published by the Reuters Institute for the Study of Journalism, SELECTED RISJ PUBLICATIONS Department of Politics and International Relations, David A. L. Levy and Rasmus Kleis Nielsen (eds) University of Oxford, 13 Norham Gardens, Oxford, OX2 6PS The Changing Business of Journalism and its implication for Democracy Tel: 01865 611090 Fax: 01865 611094 http://reutersinstitute.politics.ox.ac.uk Tim Gardam and David A. L. Levy (eds) The Price of Plurality: choice, diversity and broadcasting institutions in the digital age published in association with Ofcom Typeset and printed by Hunts www.hunts.co.uk John Lloyd and Julia Hobsbawm The Price of Plurality: choice, diversity and broadcasting institutions in the digital age Individual chapters © the respective authors of each chapter 2011 published in association with Editorial Intelligence Ltd All additional material © Reuters Institute for the Study of Journalism CHALLENGES The moral rights of the authors have been asserted. Stephen Coleman (ed) Leaders in the Living Room. The prime ministerial debates of 2010: evidence, evaluation and some recommendations All rights reserved. No part of this publication may be reproduced or disseminated or transmitted in any form or by any means, electronic, mechanical, photocopying, Richard Sambrook recording or otherwise, or stored in a retrieval system, or otherwise used in any Are Foreign Correspondents Redundant? The changing face of international news manner whatsoever without prior written permission, except for permitted fair James Painter dealing under the Copyright, Designs and Patents Act 1988. Summoned by Science: reporting climate change at Copenhagen and beyond © RISJ September 2011 -- ISBN 978-1-907384-03-5 John Kelly Red Kayaks and Hidden Gold: the rise, challenges and value of citizen journalism Edited by David A. L. Levy and Robert G. Picard Stephen Whittle and Glenda Cooper Privacy, Probity and Public Interest The Reuters Institute would like to acknowledge the support of The Joseph Rowntree Stephen Coleman, Scott Anthony, David E Morrison Reform Trust Ltd towards the production of this book. Public Trust in the News: a constructivist study of the social life of the news Cover image: Nik Gowing © TBI Communications ‘Skyful of Lies’ and Black Swans: the new tyranny of shifting information power in crises Andrew Currah What’s Happening to Our News: an investigation into the likely impact of the digital revolution on the economics of news publishing in the UK James Painter Counter-Hegemonic News: a case study of Al-Jazeera English and Telesur Floriana Fossato and John Lloyd with Alexander Verkhovsky The Web that Failed: how opposition politics and independent initiatives are failing on the internet in Russia Forthcoming CHALLENGES John Lloyd on Journalism and Transparency Paolo Mancini on Berlusconi between Commodification and Lifestyle Politics: a new model of politics for the 21st century? Anton Harber on The Challenge of Media Freedom in the African Post-Colony Is There a Better Structure for News Providers? The Potential in Charitable and Trust Ownership Edited by David A. L. Levy and Robert G. Picard Contents PART I: THE ROLES OF CHARITIES AND TRUSTS IN NEWS ORGANISATIONS 1. Why Look at Charitable and Trust Ownership of News Organisations? DAVID A. L. LEVY 3 2. Charitable Ownership and Trusts in News Organisations ROBERT G. PICARD 17 3. Regional Press Challenges Promote Calls for New Ownership Forms and Legal Bases NEIL FOWLER 31 PART II: CASE STUDIES 4. Protecting the Guardian through the Scott Trust VICTOR KEEGAN 57 5. Sustaining Independent Journalism through the ‘Reuters Trust’ (Thomson Reuters Founders Share Company) LEONARD BERKOWITZ 67 6. The Poynter Institute Preserves the St Petersburg Times KAREN DUNLAP 73 7. Finding a Way to Protect the Principles of the Toronto Star JOHN HONDERICH 79 8. Ensuring Independence at Ouest-France JEANNE-EMMANUELLE GAPSYS-HUTIN 85 9. Non-Profit Journalism Entrepreneurialism in the United States CHUCK LEWIS 97 PART III: IMPLICATIONS OF OWNERSHIP 10. Conversations 115 11. What we Now Know about Charitable and Trust Ownership of News Organisations DAVID A. L. LEVY AND ROBERT G. PICARD 131 Biographies of Authors and Commentators 137 iii PART I THE ROLES OF CHARITIES AND TRUSTS IN NEWS ORGANISATIONS 1 The Potential in Charitable and Trust Ownership 2 Why look at Charitable and Trust Ownership of News Organisations? 1. Why look at Charitable and Trust Ownership of News Organisations? David A. L. Levy The current problems afflicting news organisations in many parts of the West are leading to a resurgence of interest in alternative forms of ownership and control of those organisations. Faced with what looks like a crisis of the traditional business model it is not surprising that policy- makers, media commentators, and those who are concerned about the future of the democratic role of the press are drawn to examine the alternatives. What is surprising though is the relative paucity of detailed information about some of the alternative arrangements that do exist, together with a full understanding of their diversity, as well as of their relative strengths and weaknesses. This book, which emerges out of a conference held by the Reuters Institute in September 2010, is designed as at least in part to address that lack of information, and to equip those who are drawn to consider alternative forms of ownership and organisation with a more international and reliable evidence base on which to consider the range of options and make policy and commercial choices. These forms of ownership and operation differ fundamentally from other forms – proprietorships, partnerships, and publicly traded companies – in that they are created for purposes other than being business endeavours producing news products. They are specifically operated to pursue social, political, and
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