1. For most of the last century, news media operated on a simple principle: build a readership base by providing content, then sell the attention of that audience to advertisers.

    In the last two decades, newspapers, magazines, radio, and television have had to adapt to the rise of numerous online platforms, many of which simply aggregate news and republish it.

    The traditional advertising-based funding model has steadily declined for many years and remains so today.

    As a result, even online news outlets have begun to rethink their business models.

    Under these circumstances, other types of funding models have started to emerge. Some news organizations have registered as non-profit organizations. Both charitable foundations and individual donors are contributing to non-profit media more than ever before.

    For example, the "Center for Public Integrity" – which includes the "International Consortium of Investigative Journalists" (which has become an independent non-profit news organization since February 2017) – saw a 70% increase in individual donations that month compared to the same period in 2015.

    What is Non-Profit Journalism Exactly?

    Non-profit news organizations tend to focus on investigative and analytical journalism rather than breaking news. Currently, non-profit journalism covers many types of journalism, characterized by original reporting and specialized expertise, and its mission is to serve the community positively.

    The non-profit classification is essentially a legal framework and business structure. Under IRS regulations 501(c)(3) - 501(c)(9), any eligible organization must reinvest any surplus revenue back into the organization itself, rather than distributing profits to shareholders.

    Non-profit news organizations focus on issues of public concern. About two-thirds of them cover government and environmental issues. More than half cover education or social justice and inequality issues.

    Many non-profit media organizations have existed for decades. Among the prestigious non-profit magazines are "Harper's" (founded in 1850), **"American Prospect"** (founded in 1990), **"Consumer Reports"** (founded in 1936), and **"New Criterion"** (founded in 1982). However, in the early 21st century – in response to the financial crisis faced by newspapers – several non-profit digital news organizations emerged.

    Since then, the number of non-profit news organizations has been growing each year.

    The Institute for Nonprofit News (INN) – founded nine years ago – has about 180 members. The institute points out that there are about 200 non-profit newsrooms in the United States. The non-profit journalism sector is now generating approximately $350 million annually in revenues.

    While some critics describe non-profit journalism as "elitist" or written only for those familiar with the news, others praise it as a model of high-quality journalism. Supporters believe that non-profit journalism meets an urgent need for accurate information and analysis of complex issues.

    So, What About Funding?

    Like most non-profit organizations, non-profit news organizations rely on charitable contributions – specifically grants and individual donations.

    Private charitable foundations are a significant source of funding for many news outlets. In the United States, for example, 60% of non-profit news outlets receive at least half of their budget from charitable foundations. (Mitchell et al. 2013)

    However, it is important to note that charitable funding mostly benefits a small group of large non-profit news organizations.

    Research has also revealed that institutional funding varies geographically. 25 media outlets and content producers received 70% of total funding. Grant money primarily went to stations or content producers in only 10 states. (news.northeastern.edu)

    This means that non-profit media organizations in most states lack the necessary funding to fill gaps in newspaper coverage.

    For this reason, many non-profit news organizations are working to diversify their income sources. In order to reduce reliance on large institutions and massive charitable grants, many non-profit news organizations have begun to develop membership programs resembling subscription models like the Washington Post and others. They are also seeking to increase the number of individual donations.

    Efforts to diversify income sources, which are a key indicator of financial stability, are clear:

    • More than half of non-profit news organizations have three income sources or more.
    • While one-third have four income sources or more.

    However, despite all these efforts, individual donations – whether small or large – remain an underutilized income source for most non-profit news organizations.

    Except for public media, revenues from memberships constitute between 1% to less than one-third of total revenues for non-profit news organizations. However, News Revenue Hub recommends setting a goal of achieving 25% of total revenue from memberships and individual donations.

    Case Study – Truthout.org

    "Truthout" is a non-profit news organization dedicated to providing independent reporting and commentary on a variety of social justice issues. Since its establishment in 2001, it has been based on principles of accuracy, transparency, and independence from political and commercial influences.

    "Truthout" describes itself as an organization aiming to spark action by exposing systemic injustice and providing a platform for progressive and transformative ideas. This is achieved through in-depth investigative and analytical reporting.

    "Truthout" proudly announces that its budget relies entirely on reader donations – without receiving any funding from advertising.

    As more non-profit news organizations seek to diversify their income sources and increase individual donations, online fundraising has become more important.

    In mid-2017, "Truthout" updated its donation process to meet the needs of its readers, who needed a simpler solution instead of the long and complicated donation model they had been using.

    To manage its online donations, "Truthout" chose to use Donorbox.

    Immediately, "Truthout" saw a significant increase not only in one-time donations but also in monthly donations, which are considered a guaranteed means of sustainability when it comes to nonprofit funding.

    Journalism Does Not Work for Profit!

    Like the rest of the non-profit sector, non-profit news organizations do not operate for profit. They are not constrained by the pressures of profit generation, allowing them to maintain their editorial and creative independence.

    Non-profit journalism plays a crucial role in filling information gaps and disseminating knowledge. In an age of fake news and superficial content, non-profit journalism has become more important than ever.