Senator proposes nonprofit status for newspapers

[David Farber <dave () farber net>]

Begin forwarded message:

From: GLIGOR1 () aol com
Date: March 27, 2009 8:28:17 AM EDT
To: dave () farber net
Subject: For IP: Senator proposes nonprofit status for newspapers

Senator proposes nonprofit status for newspapers

By LARRY MARGASAK, Associated Press Writer

Tuesday, March 24, 2009

(03-24) 09:57 PDT WASHINGTON, (AP) --

Struggling newspapers should be allowed to operate as nonprofits  
similar to public broadcasting stations, Sen. Benjamin Cardin, D-Md.,  
proposed Tuesday.

Cardin introduced a bill that would allow newspapers to choose tax- 
exempt status. They would no longer be able to make political  
endorsements, but could report on all issues including political  
campaigns.

Advertising and subscription revenue would be tax-exempt, and  
contributions to support coverage could be tax deductible.

Cardin said in a statement that the bill is aimed at preserving local  
newspapers, not large newspaper conglomerates.

"We are losing our newspaper industry," said Cardin. "The economy has  
caused an immediate problem, but the business model for newspapers,  
based on circulation and advertising revenue, is broken, and that is a  
real tragedy for communities across the nation and for our democracy."

Cardin said his proposal may not be the best choice for some major  
newspapers, but "should be an option for many newspapers that are  
struggling to stay afloat."

Speaking on the Senate floor, Cardin added, "As local papers are  
closing, we're losing a valuable tradition in America — critically  
important to our communities, critically important to our democracy."

The head of the newspaper industry's trade group called the bill a  
positive step.

John Sturm, president and chief executive officer of the Newspaper  
Association of America, said the proposal "recognizes changes in the  
law might be necessary to provide a boost to newspapers trying to  
weather this difficult economic period."

He agreed with Cardin that his approach may not work for all  
newspapers, but said the legislation is a starting point for  
discussions already under way on ideas to help the industry.

The association is a nonprofit organization representing the $47  
billion newspaper industry and more than 2,000 newspapers in the  
United States and Canada.

Reports of layoffs and furloughs at newspapers around the country have  
become common in recent months. Gannett Co., which publishes 85 daily  
newspapers, announced Monday that it was asking most of its 41,500  
employees to give up a week's pay for the second time this year. The  
same day, Advance Publications, which publishes daily papers in nearly  
two dozen cities, said it was ordering 10-day furloughs and a pension  
freeze at nearly all its daily newspapers.

http://sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/03/24/national/w083008D40.DTL



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