Nieman Foundation at Harvard
HOME
          
LATEST STORY
With an interface that looks like a chat platform, Quartz wants to text you the news in its new app
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.
With an interface that looks like a chat platform, Quartz wants to text you the news in its new app
“The content type is always messages, and that’s always true whether you’re getting the message inside the app or as a notification.”
Can the Business Insider diet of irreverent, shareable finance and tech stories take off in Germany?
Business Insider Deutschland, one of eight other BI editions outside the U.S. and a growing part of the BI “international newsroom,” is doubling its staff and expanding original coverage.
Vertical video is becoming more popular, but there’s no consensus on the best way to make it
Some outlets are turning their cameras sideways. Others are cropping horizontally shot video to fit a vertical screen.
What to read next
0
tweets
Hot Pod: Charting the outflow of public radio talent to the new for-profit podcast industry
“Nick, you gotta realize: Our jobs are totally made up. I have some ideas as to what her job is going to be, but I have no idea what the day-to-day is going to be.”
0Sports Illustrated’s new app has video “baked into every channel”
“Video is one of the highest priorities we have. We wanted to make it front and center.”
0Quartz sees its readers’ behaviors evolving, so it’s evolving with them: It’s launching its first major app
A Q&A with Quartz publisher Jay Lauf about the business site’s forthcoming app, adblocking, Quartz’s potential sale, and more.
These stories are our most popular on Twitter over the past 30 days.
See all our most recent pieces ➚
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 ➚
The Chronicle of Higher Education
Foreign Policy
E.W. Scripps
West Seattle Blog
Apple
Newser
Crosscut
California Watch
NBC News
MSNBC
Flipboard
Daily Kos