HOME
          
LATEST STORY
The Atlantic redesigns, trading clutter and density for refinement
ABOUT                    SUBSCRIBE
Nov. 1, 2012, 1:30 p.m.

Nonprofit, for-profit, and all the shades in between: How to choose what kind of civic-minded news organization to start

A scholar at Harvard’s Hauser Center for Nonprofit Organizations runs through the options and how to evaluate them.

How to structure the organizations that produce journalism used to be a pretty simple question. Phase 1: Start a for-profit corporation. Phase 2: ? Phase 3: Profit!.

But as business models shift — and as nonprofit journalism continues to take up a larger (and more valuable) piece of the media pie — aspiring media moguls have an array of business entities available to choose from. A not-for-profit 501(c)3? A for-profit S corp or an LLC? A socially conscious B Corp? An L3C? A nonprofit that spawns a for-profit? In Delaware or in your home state? A 501(c)3 that starts its own 501(c)4? The options are dizzying; each comes with its own set of obligations and drawbacks, and many live at awkward intersections of state and federal law.

That’s why I’m glad our friends at Harvard’s Hauser Center for Nonprofit Organizations asked Marion Fremont-Smith to speak about:

the advantages and disadvantages of seeking tax exempt status and alternative forms for new enterprises. She will summarize both state and federal requirements for tax exempt organizations, and considerations when undertaking to seek such status, including governance requirements and considerations when choosing fiduciaries.

We’ve spoken with her before about these questions, but here she runs through the issues someone planning a new organization should be considering — and there are some interesting questions from the audience, starting 44 minutes in.

Her focus here isn’t limited to news organizations, but the lessons are highly applicable. The issues may be a little arcane to someone who isn’t in startup mode — but if you are, but it’s worth a listen. It might even save you a billable hour or two.

Note: Not much happens in the video, visually speaking, so if you just want the audio, here’s an MP3.

POSTED     Nov. 1, 2012, 1:30 p.m.
SHARE THIS STORY
   
Show comments  
Show tags
 
Join the 15,000 who get the freshest future-of-journalism news in our daily email.
The Atlantic redesigns, trading clutter and density for refinement
It wants to be a “real-time magazine” on the web, connected to its print heritage. But stripping out the visual noise won’t please everyone.
Getting beyond “public radio voice”: Finding and decoding identity on the air
Public radio voice or public radio voices? Figuring out how different identities fit together on the airwaves is a challenge for many journalists.
Newsonomics: The Wall Street Journal is playing a game of digital catchup
Its newly launched redesign isn’t just about aesthetics — it’s a chance to look inside the business and strategic thinking at America’s business daily.
What to read next
2439
tweets
The Economist’s Tom Standage on digital strategy and the limits of a model based on advertising
“The Economist has taken the view that advertising is nice, and we’ll certainly take money where we can get it, but we’re pretty much expecting it to go away.”
579What USA Today Sports learned covering the Final Four on Periscope and Snapchat
These new platforms are optimized for realtime news on phones, but there are lots of questions for news organizations — from what content to share to how to measure their effectiveness.
366The Winnipeg Free Press is launching a paywall that lets readers pay by the article
Are you one of those who’s argued an “iTunes for news” model could rebuild newspapers’ business model? Look to Canada for a paper that’s going to give it a go.
These stories are our most popular on Twitter over the past 30 days.
See all our most recent pieces ➚
Fuego is our heat-seeking Twitter bot, tracking the links the future-of-journalism crowd is talking about most on Twitter.
Here are a few of the top links Fuego’s currently watching.   Get the full Fuego ➚
Encyclo is our encyclopedia of the future of news, chronicling the key players in journalism’s evolution.
Here are a few of the entries you’ll find in Encyclo.   Get the full Encyclo ➚
Frontline
West Seattle Blog
San Diego News Network
Bloomberg
Baristanet
Vox Media
The Christian Science Monitor
Connecticut Mirror
Gannett
WikiLeaks
Politico
The Daily Beast