Nonprofit sector steps in to rescue Pittsburgh Post-Gazette from shutdown

The Pittsburgh Post-Gazette announced Tuesday it had narrowly averted a shutdown through an acquisition by a nonprofit journalism operation. This transition represents a growing trend as traditional newspapers continue to struggle with declining advertising revenues and shrinking circulation numbers in the digital age.

The move places the Post-Gazette among a growing number of legacy newspapers seeking survival through nonprofit structures, as traditional business models in the newspaper industry continue to falter.

In 2019, The Salt Lake Tribune pioneered this transition by becoming the first legacy newspaper in the United States to directly convert from a for-profit company to a nonprofit entity. This groundbreaking move required special approval from the Internal Revenue Service, distinguishing it from newspapers that were simply purchased by existing nonprofit organizations.

The Tribune’s nonprofit transformation involved establishing a board of directors and creating new donation-based revenue streams. To maintain journalistic integrity, the paper implemented strict firewalls between donors and the newsroom to prevent outside influence on reporting. The editorial board also ceased making political candidate endorsements as part of the structural change.

Founded in 1871 as “The Tribune & Utah Mining Gazette,” the Salt Lake Tribune had weathered numerous ownership changes before its nonprofit conversion. Like many newspapers, it faced significant financial challenges as readers migrated to online platforms and advertisers redirected spending to digital media.

Prior to its nonprofit transition, the Tribune experienced a particularly turbulent period under the ownership of Alden Global Capital. The New York-based hedge fund, known for aggressive cost-cutting measures in media properties, had acquired the newspaper in 2010, burdening it with $278 million in acquisition debt. The subsequent restructuring led to significant staff reductions and triggered an investigation by the U.S. Department of Justice. Utah businessman Paul Huntsman purchased the newspaper in 2016 before facilitating its transformation to nonprofit status.

In Chicago, a similar shift occurred in 2022 when Chicago Public Media acquired the Chicago Sun-Times, creating one of the nation’s largest local nonprofit news organizations. The Sun-Times, established in 1948 by department store heir Marshall Field III through the merger of the Chicago Sun and the Daily Times, had experienced multiple ownership changes before this acquisition.

The purchase by Chicago Public Media, which already owned NPR affiliate WBEZ, enabled content sharing across platforms, expanding the audience reach for both organizations while creating a more sustainable business structure.

The Tampa Bay Times represents another successful nonprofit model in newspaper publishing. Starting as the West Hillsborough Times in 1884, the paper was purchased in 1912 by former Indiana publisher Paul Poynter. The newspaper remained in the Poynter family until 1978, when Nelson Poynter, Paul’s son, died and bequeathed the newspaper to the Modern Media Institute, a local nonprofit journalism school. This effectively transformed the newspaper into a nonprofit enterprise. The institute was later renamed the Poynter Institute in his honor.

Despite these innovative ownership structures, the financial landscape remains challenging for news organizations nationwide. The media industry crisis extends beyond American borders, affecting news outlets worldwide, including those in the Caribbean. Many organizations have implemented cost-cutting measures, including layoffs, or explored alternative revenue streams such as donation campaigns and digital paywalls.

Even The Associated Press, one of the world’s oldest news agencies founded in the mid-19th century as a cost-sharing cooperative for newspapers, has not been immune to industry pressures despite its longstanding nonprofit status. Last week, the AP announced buyout offers to an undisclosed number of U.S.-based journalists as part of a strategic shift away from its historical focus on newspapers and print journalism. According to the News Media Guild union, more than 120 staff members received these buyout offers.

As traditional revenue sources continue to decline, the nonprofit model offers newspapers a potential lifeline, though it represents a fundamental shift in how journalism is funded and sustained in communities across America.