Philanthropies pledge $500 million to address 'crisis in local news'

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Philanthropies pledge $500 million to address 'crisis in local news'
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The new coalition of donors, led by the MacArthur Foundation, says one out of every five Americans lives in a 'news desert' with little to no reliable local news.

And there are innovations happening in the industry. Older digital outlets such as the Voice of San Diego and the Texas Tribune have been joined by others such as the non-profit Baltimore Banner; Report for America has placed dedicated reporters in existing and upstart newsrooms around the country; the American Journalism Project has helped news outlets refine their business strategies; the National Trust for News has enabled the acquisition of news organizations by not-for profits.

"You cannot have news reporting if you don't have reporters - and you can't have reporters if you cannot afford to pay them," Ibargüen says."We've been on a search to look: What's the model?" Many major newspaper groups — including Gannett, McClatchy, and the old Tribune and MediaNews publications — are now controlled by investment funds which have embarked on severe rounds of repeated cuts. In the case of the two latter groups, it's Alden Global Capital, which has been criticized as a"vulture capitalist" outfit.

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