Can foundations solve the journalism crisis?

In the context of the ongoing financial crisis in U.S. professional journalism, philanthropic foundation-supported nonprofits are increasingly proposed as a solution to the under-provision of civic-oriented news production. Drawing on an analysis of the social composition of boards of directors and interviews with foundation officials and nonprofit journalists, this article examines both the civic contributions and limitations of foundation-supported nonprofit news organizations. Foundations are shown to place many nonprofits in a Catch-22 because of competing demands to achieve both economic “sustainability” and civic “impact,” ultimately creating pressures to reproduce dominant commercial media news practices or orient news primarily for small, elite audiences. Further, media organizations dependent on foundation project-based funding risk being captured by foundation agendas and thus less able to investigate the issues they deem most important. Reforms encouraging more long-term, no-strings-attached funding by foundations, along with development of small donor and public funding, could help nonprofits overcome their current limitations.