Comments on: An important analysis of nonprofit law for newspapers http://www.niemanlab.org/2009/10/an-important-analysis-of-nonprofit-law-for-newspapers/ A collaborative effort to figure out the future of journalism. A project of Harvard University. Sun, 12 Feb 2012 17:39:00 -0500 hourly 1 http://wordpress.org/?v=3.3.1 By: Joshua Benton http://www.niemanlab.org/2009/10/an-important-analysis-of-nonprofit-law-for-newspapers/comment-page-1/#comment-43975 Joshua Benton Mon, 19 Oct 2009 15:43:05 +0000 http://www.niemanlab.org/?p=9999#comment-43975 Dan, the issue is less about the ability of new nonprofit news organizations to launch than about the ability of <i>existing</i> news orgs to <i>convert</i> to nonprofits. In other words, yes, there can obviously be MinnPosts and New Haven Independents. But could the Minneapolis Star-Tribune and the New Haven Register <i>become</i> nonprofits? That's a different question, because the IRS understandably takes a different look at a long-standing and long-profitable business that suddenly wants to be exempt from paying taxes on its revenues. With the St. Pete Times, to pull it off, they had to create an entirely separate educational institution (Poynter) to serve as parent -- they couldn't just make the St. Pete Times a nonprofit. So, while I'm no expert on this stuff, there <i>have</i> been people who've said that a Boston Globe or a Seattle Times couldn't just decide one day it was going to become a nonprofit. As the paper says, there were IRS rulings to that effect that are still on the books. Marion's research argues that, in fact, they could make the conversion. Dan, the issue is less about the ability of new nonprofit news organizations to launch than about the ability of existing news orgs to convert to nonprofits.

In other words, yes, there can obviously be MinnPosts and New Haven Independents. But could the Minneapolis Star-Tribune and the New Haven Register become nonprofits? That’s a different question, because the IRS understandably takes a different look at a long-standing and long-profitable business that suddenly wants to be exempt from paying taxes on its revenues. With the St. Pete Times, to pull it off, they had to create an entirely separate educational institution (Poynter) to serve as parent — they couldn’t just make the St. Pete Times a nonprofit.

So, while I’m no expert on this stuff, there have been people who’ve said that a Boston Globe or a Seattle Times couldn’t just decide one day it was going to become a nonprofit. As the paper says, there were IRS rulings to that effect that are still on the books. Marion’s research argues that, in fact, they could make the conversion.

]]> By: Dan Kennedy http://www.niemanlab.org/2009/10/an-important-analysis-of-nonprofit-law-for-newspapers/comment-page-1/#comment-43974 Dan Kennedy Mon, 19 Oct 2009 15:37:13 +0000 http://www.niemanlab.org/?p=9999#comment-43974 I am puzzled about why we are arguing over this when non-profit news orgs are already in existence. How did Voice of San Diego, MinnPost, New Haven Independent get started if there's a debate over whether they can have non-profit status? Uh, they already have it. Josh, you wrote earlier this year that the Cardin bill was unnecessary, which struck me then as being correct. Still does. I am puzzled about why we are arguing over this when non-profit news orgs are already in existence. How did Voice of San Diego, MinnPost, New Haven Independent get started if there’s a debate over whether they can have non-profit status? Uh, they already have it.

Josh, you wrote earlier this year that the Cardin bill was unnecessary, which struck me then as being correct. Still does.

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