Utah’s largest newspaper goes nonprofit
Utah’s largest newspaper, The Salt Lake Tribune, is set to become a non-profit organization within the next year.
The Tribune’s new tax status will see several changes in the paper’s day-to-day operations, including the paper’s endorsement of political candidates, revenue streams and Paul Huntsman’s ownership of the publication.
The sale of print newspapers is declining across the country. According to a 2018 article from the Pew Research Center, the newspaper subscription base has been on a sharp decline since the early 2000’s. From 2017-2018, the data shows a nearly 11% drop in print circulation and revenue.
The loss is steep for papers like the Salt Lake Tribune, who make money off the advertisements found in print newspapers. Despite the loss in income, Tribune editor Jennifer Napier-Pearce says the publication will continue to print papers.
“Newspapers are a niche product now and no longer how most readers get their news, but The Tribune will continue to print as long as it’s economically feasible,” Napier-Pearce said.
Among the changes set to affect the newspaper include it’s long tradition of endorsing political candidates. 501 (c)(3) nonprofits cannot endorse candidates if they want to maintain their tax status. However, Napier-Pearce does not believe it will impact them negatively. “We can opine on issues and we will continue to have a vibrant opinion section with a full range of views,” she said.
The organization’s decision to go non-profit is a first for a major legacy newspaper. As a community asset, the Tribune will have to look for financing outside of paid consumers. According to a piece from the Tribune, the operation will be sustained by large and small donations.
“Tribune executives are considering a system that would treat print and digital subscriptions as gifts to readers, in exchange for donations — akin to the keepsakes given to donors of public radio,” Napier-Pearce said.
According to Napier-Pearce, Huntsman’s status as owner and publisher of the Tribune will also change.
“Paul Huntsman will no longer own The Tribune, but he will remain a critical participant in our success as chairman of the board. His ongoing commitment remains key to our success,” she said.
Questions remain about how the new non-profit status will affect the Tribune’s Joint Operating Agreement with the Deseret News. According to the Tribune article, the JOA between the two organizations has existed for nearly 60 years. Napier-Pearce said she cannot comment on the JOA, except that the contract will expire by the end of 2020.
The publication’s new future as a community asset comes at a time when many journalists are being laid off across the country. The Tribune is no exception, as it was forced to lay off over a third of its staff in the last year. When asked if this could be discouraging for future journalists, Napier-Pearce remained optimistic about the future and committed to the importance of independent journalism.
“Journalism is absolutely essential for our democracy, and I’m heartened by the commitment, skill and enthusiasm I see in the next generation of reporters and editors. It’s crucial that The Tribune finds a way to thrive financially to support the journalists who provide this vital public service,” she said.
The Tribune currently expects IRS approval for their new tax status within the next year.
taylorcripe@gmail.com
@cripe_taylor