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It's Time to Endow Newspapers

Times begs for its life

By Kevin Spak,  Newser Staff

Posted Jan 28, 2009 9:23 AM CST

(Newser) – Newspapers are dying, and there’s only one way to save them, write Yale's David Swensen and Michael Schmidt in today’s New York Times: Make them nonprofit, endowed institutions, like colleges. The Internet has made the for-profit model systematically unsustainable, and constant attempts to refinance and cut costs are just “Band-Aids for a gaping wound.” Endowing them would fix all that, making them “unshakable fixtures of American life.”

To gain tax-exempt status, these nonprofit papers would have to refrain from influencing legislation or participating “in any campaign activity for or against political candidates,” but that “seems minor in the context of the opinion-heavy web.” And reporters would be in the ideal situation—beholden to neither advertisers nor shareholders. Based on its current news-gathering costs, the Times would need a $5 billion endowment to keep running.

The front page of Monday's edition of The New York Times, containing an advertisement for CBS television, is shown Jan. 5, 2009, something that would have once been unthinkable.
The front page of Monday's edition of The New York Times, containing an advertisement for CBS television, is shown Jan. 5, 2009, something that would have once been unthinkable.   (AP Photo/Mark Lennihan)
Erin Butner buys two copies of the New York Times, with President Barack Obama's inauguration on one of its covers, at Stacey's bookstore in San Francisco, Wednesday, Jan. 21, 2009.
Erin Butner buys two copies of the New York Times, with President Barack Obama's inauguration on one of its covers, at Stacey's bookstore in San Francisco, Wednesday, Jan. 21, 2009.   (AP Photo/Jeff Chiu)
Newspaper vendor Rebecca Steele adds to the stack of copies of USA Today at First & Pike News in downtown Seattle Wednesday, Jan. 21, 2009.
Newspaper vendor Rebecca Steele adds to the stack of copies of USA Today at First & Pike News in downtown Seattle Wednesday, Jan. 21, 2009.   (AP Photo/Elaine Thompson)
A man buys a newspaper from a vendor in New York's Financial District, Wednesday Nov. 5, 2008.
A man buys a newspaper from a vendor in New York's Financial District, Wednesday Nov. 5, 2008.   (AP Photo/Richard Drew)
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Were it left to me to decide whether we should have a government without newspapers or newspapers without a government, I should not hesitate to prefer the latter. - Thomas Jefferson

Enlightened philanthropists must act now or watch a vital component of American democracy fade into irrelevance. - David Swensen and Michael Schmidt

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COMMENTS
Showing 3 of 7 comments
Guest
Jan 28, 2009 7:09 PM CST
I agree with the Yalies.
Guest
Jan 28, 2009 7:09 PM CST
Give me a break. NPR has no bias. If you listened to it instead of just Limbaugh, you'd know that.
justme
Jan 28, 2009 2:55 AM CST
Take a look at NPR. Tax exempt status does not means fair or balanced reporting, whether on paper or over the airwaves. If the rules were truly enforced, they might but with politics involved in everything, don't hold your breath.

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