Wednesday, March 25, 2009

Bill introduced to allow newspapers to become nonprofits

A report from Reuters appearing at NEWSMAX.COM states that U. S. Senator Benjamin Cardin has introduced a bill "allowing newspaper companies to restructure as nonprofits with a variety of tax breaks."

According to Cardin, "This may not be the optimal choice for some major newspapers or corporate media chains but it should be an option for many newspapers's that are struggling to stay afloat."

Presumably contributions to such a non-profit would provide a tax credit against incomes from other sources. Given the Steinman family's history of philanthropy and the rapid deterioration of the financial viability of newspapers throughout the country, such a option may someday prove useful, especially given their other investments.

Nevertheless, even nonprofits need to meet payrolls! Local news websites due to their lower costs, usually offshoots of the newspapers, may benefit more from being nonprofits than the print media.