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Through an agreement with UK-based , PND is pleased to be able to offer a series of articles about global philanthropy.

The Media Philanthropy Space in 2017

The Media Philanthropy Space in 2017

Philanthropies now support media and journalism to a spectacular degree — some $1.3 billion annually between 2011 and 2015, a stunning amount by news industry standards.

The authoritative source on the matter, the , which is maintained by  and , indicates how charitable foundations distribute this bounty.

More than two-thirds goes towards what could be described as services: awareness campaigns for social or other charitable causes (including international development), education, or information-oriented platforms. Another fifth is awarded to the thematic cluster of press freedom, open access, and technological innovation in media.

That leaves on average just 17 percent of the available funding for journalism in the narrower sense — that is, the production of independent journalistic coverage.

In absolute figures, this translates into journalism grants worth more than $220 million a year — even more if we account for European and other journalism grantmaking worldwide that has not yet made it into the Media Grants Data Map. A recent study commissioned by the  revealed that the UK market alone is estimated at close to $40 million annually. 

Kartsen_chart

Two reasons why the U.S. gets the biggest share

And yet, charitable journalism funding largely remains a U.S. affair — both in terms of donors and beneficiaries. More than 90 percent of grant money flows to U.S.-based organizations, with some 6 percent of funds allocated to Europe and only about 1 percent to media outlets in the developing world. 

The vast majority of foundations engaging in the sector are also based in the U.S. The reasons are two-fold. First, Europe generally has a less-developed philanthropy culture than the U.S. Second, it traditionally has strong public- or state-funded media and far-ranging media subsidy systems in place.

Hence, potential donors habitually do not perceive media and journalism as particularly in need of extra funding but rather focus their efforts on social issues, science, and the arts. This may have changed recently, though — there is a noticeable European equivalent to the "Trump bump" . 

Like goes to like

Nonprofit recipients attract the better part of journalism-related grant revenues; less than 3 percent of the total grants budget is funneled directly into commercial news organizations.

That figure is higher, though, if sub-grants made by nonprofit intermediaries such as the European Journalism Centre are counted. Indeed, existing rules and regulations make it more difficult for charitable foundations to subsidize businesses than to fund fellow charities. Keeping the money within the tax-exempt ecosystem is the path of least resistance. 

That said, the mutual reservations between foundations and commercial news outlets suggest that their interests are not always perfectly aligned.

Foundations often see media and journalism as proxies of their own issue-driven campaigning. Catering to this demand comes naturally to similarly inclined NGOs but not to general-purpose journalism organizations.

What the latter rather hope for is that foundations "embrace the model of journalism," as one participant in the European Journalism Centre's Journalism Funders Forum : journalism in the public interest as a purpose in and of itself. 

Nevertheless, it should be noted that thematically targeted foundation funding, such as the Bill & Melinda Gates Foundation's international support for development coverage, still goes a long way toward supporting a healthy news ecosystem.

Where issue-driven funders respect editorial independence, they enable quality journalism and give a boost to journalistic talent in a way that the ailing industry itself is increasingly unlikely to afford. 

Between 2011 and 2014, just 7 percent of funding went into unrestricted operational support for journalism organizations (not counting the Newseum in Washington, D.C., which is the single largest recipient of philanthropic journalism funding at an accumulated $231 million — ten times as much as ProPublica).

The  and the  are among the main donors in this space, helping organizations such as ProPublica, the Center for Investigative Reporting, and the  perform their work independently and shielding them from the whims of the market. 

Finally, this trend has also caught on in Europe. In Germany, the  has made a substantial investment in , which could be described as the German ProPublica, while the  has pledged almost $30 million to the creation of a future House of Non-Profit Journalism.

In the UK, the  and the  have received grants from, among others, the , the , and .

Even inside the European Union bloc, most funding opportunities remain tied to domestic interests, although funders from the Netherlands in particular distinguish themselves by making cross-border grants. 

Finally, one of the most remarkable aspects of this new development is that an increasing number of foundations without a background in news are coming into the picture. While unconditional funding for journalism used to emerge almost exclusively from donors fueled by old newspaper money (Knight and Brost are examples), the times are such that foundations with different backgrounds have come to appreciate the public value that lies in independent journalism.

A great opportunity — but one for which journalism must step up to the plate as well. 

Eric Karstens ([email protected]is a grant consultant for the  and other clients. The author thanks Sarah Armour-Jones and  for access to their database and valuable advice. All figures are based on the author’s own calculations.