Who pays for investigative journalism?
Mon, Apr 6, 2009
The Huffington Post recently announced a US$1.75million fund to support investigative journalism in the US.
The pieces developed by the Fund will range from long-form investigations to short breaking news stories and will be presented in a variety of media, including text, audio and video. And, in the open source spirit of the Web, all of the content the Fund produces will be free for anyone to publish.
Picture a large pool of reporters — some on staff, and many freelancers — proposing stories and also receiving assignments from Investigative Fund editors.
This investigative initiative is being funded by The Huffington Post and The Atlantic Philanthropies, and will be headed by Nick Penniman, founder of The American News Project, which will be folded into the Fund.
Judith Townend has written a good piece on journalism.co.uk looking at the fund and the wider issue of public funding for journalism.
She found largely positive support for the Huffington Post fund and others like it, but an interesting thread running through the piece is a wariness of expecting one income model – whether a philanthropic lump sum or advertising – to be the solution for the news media’s financial problems.
“I have reservations about every lump of money,” [Jay] Rosen tells Journalism.co.uk. “If I had one wish in this whole business model discussion, it would be that everybody would drop the idea that there is a single solution.”
“All models of journalism have weakenesses, have downsides, have strengths. The ‘one’ model [idea] is stupid. How do we know there will be this money in three years? We don’t.”
That’s a philosophy echoed by ProPublica’s managing editor Stephen Engelberg, even though his non-profit organisation – a well-resourced and respected investigative team which supplies investigations to other media bodies – does rely on one substantial funder – the Sandler Foundation.
“I frankly think [large foundation donations are] not the answer because it seems to me you really need a hybrid of revenue streams,” he tells Journalism.co.uk during an interview at the ProPublica headquarters in New York.
“We’re very fortunate to have it [foundation funding] in the short-run. We see this not as a long, long-term thing – I think over time we’re going to have to evolve too, but in the short-term you have foundations – people who can pay for this.”
He cites the MinnPost as an example of how journalism can use a pool of resources: “They try and take some of the Obama model and say, well, you can get 10,000 people to give you $5 – that’s money, and $50 – that’s real money.
“So you have large and small donors. You have some advertising. Web advertising is selling very cheaply right now, but it’s something. You try and figure out if there’s any kind of merchandise you can sell. Anything at all you can create revenue from.
“People talk about non-profit journalism and they say ‘well isn’t it great? You take that profit thing out and we’re all going to be fine’. Well, no, non-profit journalism doesn’t mean you can spend more than you have. It just means that when you’re done not spending more than you have, you don’t then have to create an additional percentage which has to go to Rupert Murdoch.”
There are still expenses that have to be met, Engelberg says. ProPublica, he says, is not about proving a business model, but about proving a journalism model. That’s a ‘luxury’ of which he is well aware, he says, and one he intends to make the most of while he can.
ProPublica is a frequently cited example of successful non-profit investigative journalism, and sustainability of such an enterprise is the key question, raised by all the interviewees consulted for this feature.
“ProPublica is funded almost exclusively by the Sandlers, and God bless for them for committing to that project for as many years as they have,” says Aron Pilhofer, editor of newsroom interactive technologies at the New York Times.
“But ProPublica, I think, would be the first ones to tell you, don’t really know how successful non-profit journalism is going to be.”
“The non-profit model could be part of it but no-one knows. I still think there’s a viable, commercial model,” Pilhofer adds, explaining his view that there are new ways of earning revenue from advertising and other projects, a model which is currently ‘maturing’, as traditional advertising models shift along with changing patterns of news.
Nicholas Carlson at Silicon Alley Insider has a very different take on the value of the Huffington Post fund and suggests that the impetus for investigative journalism doesn’t so much come from journalists looking for stories as it does from whistle blowers looking for a big audience.
From where we’re sitting, the Fund looks like a very smart PR play — and not much else.
The PR benefits are obvious:
- The fund will help to put handwringing about journalism to rest and make the NYT’s “mission from God” rhetoric even more ridiculous.
- The fund also counters the grumbling that the HuffPo is just a leech sucking remaining life out of real news orgs.
But will the Huffington Post Investigative Fund actually make a big difference in investigative journalism? Not necessarily.
Investigative journalism requires resources, sure, but it’s fueled mostly by whistle-blowing sources looking for the media outlet with the loudest megaphone — not reporters looking for sources.
Remember, “Deep Throat,” a.k.a William Mark Felt, came to Woodward and Bernstein, not the other way around. It’s also worth remembering he did so not entirely out of altruism. The guy was very upset with Nixon because he politicized the FBI.
Source like Felt — people with axes to grind and ulterior motives against the powers that be — aren’t going to go away just because newspapers are. These people have a self-interest to talk to whomever they need to get their story out and thereby gratify their own political or commercial ambitions.
Investigative reporters — like most kinds of reporters — are valuable because they’re willing to listen to these people, fact-check their stories, and then tell the whole world about it.
If the Huffpo begins breaking big stories someday, it won’t be because it’s spending $1.75 million on investigative journalism. It will be because the HuffPo’s audience is so big, ax-grinding sources will go to it with their stories first. The Huffington Post will have a commercial interest in checking the stories out and running them.
The US has a number of news initiatives funded by philanthropic endowments. The Knight Foundation funds innovative community-based digital news projects among other things. ProPublica, mentioned above, is a non-profit that runs an investigative news team which supplies content to a range of publications, and the Poynter Institute is a financially independent journalism educator and publisher.
I haven’t seen anything like these organisations in New Zealand, but I’d like to hear about them if they exist. Certainly the idea’s kicking around. I know I’ve had conversations with several people about the merits or otherwise of using public or private funds to support either investigative journalism or innovative projects that explore newsgathering and news delivery online.
In a recent NZ Herald editorial Alan Cocker, Head of the School of Communications at AUT, called for a publicly-funded mainstream news organisation as a backstop against privately owned companies failing.
Meanwhile, his colleague Martin Hirst has established a research group which is kicking off tonight with a talk by Australian academic David Cameron about what journalists can learn from video gamers (a big growth sector). 5.30pm Room WT302, AUT Tower corner Rutland and Wakefield sts, Auckland (opposite Aotea Square, off Queen st).

I have just read Alan Cocker’s drible in the NZ Herald editorial and it saddens me that he takes such an old school response to new media changes.
Government funded news bailout. What a cop out. No thanks Mr Cocker.
Know what you mean Fraser! But I also understand how temptingly simple the government bailout option seems in the face of so much uncertainty and change in the news business. He’s not alone. There are voices all around the world who are conflating, wrongly in my view, the future of newspapers with the future of journalism. Not long ago a UK politician started calling for a bailout for newspapers there. I wonder how long before one of our politicians stands up and asks for the same thing here?
I’ve just read a two-year-old article in Wired by former Talking Heads front man David Byrne who dissects the potential new business models for musicians. I don’t think it holds the answers for newspapers and journalists, but it’s a good starting point for us to figure a way out of the maze.
I’ve written a small piece on my site: http://is.gd/rKJn
The original story is: http://is.gd/pSsz
An interesting debate – can I point out that I don’t think the guy is right who says Felt went to Woodward. From what I’ve read about Watergate Bernstein nagged Woodward until he approached Felt. Yes, Felt was upset about Nixon’s attempt to politicise the FBI, and yes he did seem to use the media to strike back, but so what? Do whistleblowers’ motives matter, if what they say is true?
And yes, I agree we need some kind of alternative to the present funding models. Perhaps a non-profit trust like the Guardian or something like the Washpo. There is a scary lack of basic beat reporting in nz papers now, because the corporate duopoly doesn’t see it as a ratings winner. But it’s essential in all sorts of ways. Another vital thing for investigative reporting, in my experience, is giving reporters space to publish stories that will attract reader concern – this generates the dynamic and often the information that leads to bigger things. Take Watergate again; I think you can make a good case that the news stories gave Nixon’s opponents in Senate the ammunition they needed to launch the inquiries that had the power to subpoena witnesses, and from there it snowballed.
Hi James,
Good points. I don’t know the background of the Watergate affair well enough to determine who said what to whom first, but I thought SAI’s point was an interesting one – that the big whistleblowing kind of investigate journalism is a small part of the overall news diet.
I agree with you about the lack of basic beat reporting and the need for it, and I like it that your comment appears to include beat reporting under the umbrella of investigative journalism. I find myself getting frustrated when we try discuss the future of news in blanket statements such as ‘we need more investigative journalism’, ‘we need more quality journalism’ and ‘we must protect the future of democracy’.
We need to be more specific in my view, break it down more, talk about what kinds of stories are important, to whom, why and how to get those stories to people in the digital age. And, of course, how to pay the journalists. Certainly the non-profit model such as the Scott Trust, which publishes the Guardian, is appealing. But do you know any news-mad philanthropists in New Zealand?
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Hm. I assume it’s okay with our free marketeers here that Rail and Air swallowed up a billion or two of public funds not so long ago?
But it’s “drible” to suggest that a few dozen – gosh, maybe even one hundred – million be invested in independent public media monitoring issues like – say – billions spent on Rail and Air.
I dunno. For me, I think we need a BBC model where journalists get paid to ask the big questions, and the legal muscle to ask them.
Questions like, using the rail and air example again – who does the money go to? What are their connections with political parties, if any?
Stuff like that.
After all, as Transparency International says, we are first equal with Finland as the least corrupt countries in the whole world!
Surely it makes sense to protect that perception by actively funding investigative journalism, help ensure it stays that way.
Yet, cutbacks. Dozens here, tens of thousands worldwide in just the last 24 months.
Journalism in crisis is now being debated worldwide.
Some encouraging signs: Our nearest and biggest trading partner, Australia, has just given the ABC it’s biggest funding boost in a quarter century.
Given that information leadership next door, I think suggestions raised in the column deserve more than free market fundamentalisms. Socialisms like corporate welfare seem okay in other sectors, why not the media?
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