The Public Press model will allow it to hire professional journalists to produce high‐quality, substantive news coverage at less expense than traditional newspapers. Cost‐saving opportunities include tax avoidance due to nonprofit status, content sharing with strategic partners and reduced materials use.
Some examples of major costs and potential savings:
PROFIT REINVESTMENT
As a nonprofit venture, revenue gains are returned to the project, not distributed to investors.
SLIMMED DOWN PRINTING
The Public Press will use about 40 percent as much paper as a daily newspaper with the same size news hole — shrinking a typical 60‐page broadsheet paper to 24 pages. This reduces a major materials expense burdening the entire newspaper industry.
COLLABORATIVE NEWS GATHERING
The Public Press will save money by sharing content with other nonprofit and independent media outlets, including radio stations and web‐based publications.
TAX EXEMPTION
As a 501(c)3 tax‐exempt nonprofit organization (initially through fiscal sponsorship), The Public Press will pay no corporate taxes. State law also specifically exempts advertising‐free and membership‐based newspapers from tax on sale of both the finished newspaper and its component materials.
NEXT GENERATION TECHNOLOGY
The Public Press has the opportunity to invest in a next‐generation publishing platform (through a web‐based, possibly open‐source content management system) that will help it leapfrog ahead of existing papers that have sunk investment into older technologies.
DISTRIBUTION
To minimize delivery costs, distribution will grow from a nucleus of one or a few neighborhoods. The paper will save on fuel by relying primarily on bicycle delivery — a possibility only because of the more compact, lightweight ad‐free design.
Next: Revenue – A Balanced Portfolio
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