US newspapers – tax-exempt?
p2pnet news view | Advertising:- The mainstream corporate press is suffering not only from from serious competition from humble citizen journalists online but also, and more to the point these days, from the recession.
So is it time for them to operate as nonprofit organizations?
US Senator Ben Cardin figures it is.
Under a bill he’s proposing, advertising and circulation revenue could be tax exempt, Cardin says in the Boston Globe, going on, “Newspapers would be barred from making political endorsements”.
Los Angeles Times owner Tribune Co, owner of the Philadelphia Inquirer, and two other publishers have sought bankruptcy protection since December, says the story.
And the Seattle Post-Intelligencer went down following plunging ad revenues.
“The economy has caused an immediate problem, but the business model for newspapers, based on circulation and advertising revenue, is broken,” Cardin said.
The legislation would, “give a national green light for newspapers to adopt the so-called Low Profit Limited Liability Company business model, often shortened to L3C,” says Editor & Publisher, adding:
“The L3C model, which the Newspaper Guild supports as an alternative newspaper ownership model, is the subject of a feature story in the current print issue of Editor & Publisher.”
“Under Cardin’s legislation, newspaper revenue would be tax-exempt, and contributions to papers would be tax deductible. The status would also allow non-profits to invest in newspapers, something that is forbidden now.
“Cardin said action is needed to help preserve local newspapers.”
Boston Globe – Newspapers could get nonprofit status, March 25, 2009
plunging ad revenues – Seattle Post-Intelligencer, the Net`s newest blog, March 17, 2009
Editor & Publisher -Senate Bill Would Allow Tax-Exempt Status for Newspapers, March 24, 2009
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March 26th, 2009 at 9:51 am
Sounds like a good idea, in principle. It removes the current political ‘editorialising’ that happens constantly in local news (and national), and allows the medium to remain as a viable source of local news for those who are not currently a part of the modern, internet-driven, news revolution. It also would help safeguard some jobs, in a time when they are sorely needed (in the short-term, at least).
March 26th, 2009 at 10:28 am
“Newspapers would be barred from making political endorsements”
What’s next? Bar them from disclosing information not pleasant to the government?
This law is a threat to press neutrality.
March 26th, 2009 at 12:35 pm
“…action is needed to help preserve local newspapers.â
Or, we could just accept the business model is dead, and move on.
_________________
“Whatâs next? Bar them from disclosing information not pleasant to the government?”
In other words, what’s already going on to a large extent.
May 8th, 2009 at 11:14 am
We have an existing process for filing for non-profit status. If newspapers had chosen to qualify themselves for this status, they could have applied. Why give them a special status and ease that other non-profits do not enjoy? If I started a charity, the government would not streamline the process for me or re-write the rules.