ProPublica Provides Journalism Without Ads

Non-Profit Tries to Fill Void in Newspapers' Investigative Reporting

Nov 26, 2008

ProPublica sees declining advertising as a threat to traditional journalism and hires writers to do investigative reporting. Can it sustain itself?

Investigative reporting is one of the first temptations to cut when newspapers lose as much advertising revenue as they are losing in 2008. That’s why the new ProPublica non-profit group says it is producing investigative articles and contributing them to media that will provide ample exposure.

"Investigative journalism is at risk," ProPublica says on its website. "Many news organizations have increasingly come to see it as a luxury. Today’s investigative reporters lack resources."

Though it publishes its articles on a website, ProPublica has no immediate plans to sell advertising to supplement the contributions on which it is currently operating. According to the New York Times, that funding iis topped by an estimated $10 million per year commitment from the Sandler Foundation.

Dick Tofel On Advertising

"We don’t have any current plans to sell advertising, but it is true that, in the long run, our business model will need to evolve," General Manager Dick Tofel wrote in an email. "Contributions are certainly welcomed."

For more than a century, practically all American journalism has been supported by advertising in newspapers, magazines, radio, television and even today's Internet websites.

ProPublica, which is headquartered in Manhattan, New York, began operating in January 2008 and published its first article in June. President and editor-in-chief is Paul Steiger, who served as editor of the Wall Street Journal for 16 years. Tofel, ProPublica’s general manager, previously served as assistant publisher and assistant managing editor of the Journal.

Herbert Sandler is Chairman

Herbert Sandler, the former head of Golden West Financial Corp., is chairman of ProPublica. That has already prompted the new organization to look inward for some of its material. In a November 21 "Report on Scandals," ProPublica noted that "the SEC and the Justice Department are investigating whether Golden West’s mortgage lending was tainted by fraud. (Golden West was controlled until 2006 by Herbert and Marion Sandler, whose Sandler Foundation is the principal founder of ProPublica.)"

According to Reuters and the Charlotte Business Journal, U.S. Attorney Joseph Russoniello of San Francisco has acknowledged that the Securities and Exchange Commission and the Justice Department are "looking at the sale of Golden West" to Wachovia and at Golden West’s mortgage lending practices.

In 2006, Golden West was purchased for $25 billion by Wachovia, which has since experienced heavy losses and was taken over by Wells Fargo in October 2008.

Because of Herbert and Marion Sandler’s previous heavy support of Democratic groups some media also have questioned whether ProPublica would be unbiased in its selection and handling of investigative subjects.

Jack Shafer Questions Independence

"How happy will they be if ProPublica gores their sacred Democratic cows? Or takes the "wrong" position on their pet projects: health, the environment, and civil liberties?" Jack Shafer asked in Slate.

Steiger has said he cleared those points with Sandler and a board of trustees has been set up to assure independence in ProPublica coverage. The test will come when Democrats take over the White House.

Investigative reporting is an easy area for newspapers to cut because it is expensive and readers do not miss it immediately. They expect their newspaper to have stories about breaking events, but they seldom anticipate an investigation on a particular subject.

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