HOW NEWS WORKS
FUNDING AND OWNERSHIP
Trust is a key component in people’s willingness to pay for the news. If they don’t think a news product is worthy of trust, they probably don’t think it’s worthy of their dollars, either.
It makes sense that people like to know where their money is going and how it will be used. But we know the public is uninformed about the business side of news, and when people don’t understand something, they often make inaccurate assumptions.
We know people often assume that newsrooms have a lot of money or that their coverage is mostly dictated by ownership and funding — but neither assumption is true for most news outlets.
Our research has shown when newsrooms provide explanations and insight into their processes, it helps people not only better understand your goals and motivations, but it also improves peoples’ perception of your news organization.
That means you can combat accusations and build trust by getting on the record about where you get your money, how it influences your coverage and why you rely on community support. This Trust Kit walks you through how.
We know people assume that newsrooms have a lot of money or that their coverage is mostly dictated by ownership and funding — but neither assumption is true for most news outlets.
Your Turn! Use the sample language and examples in this Trust Kit to explain your newsroom’s ownership and funding. As you create explanations, add them to your website and then link them prominently so they are easy to find. Share them on-air, on social, in newsletters — anywhere you’re in conversation with your audience.
Goals
This Trust Kit helps you:
- Clear up public misconceptions about your ownership and funding
- Explain where your funding comes from and how that funding does — or doesn’t — influence coverage
- Explain why news costs money
- Ask for public support and donations
Explain your ownership and funding
For many journalists, the impact of who owns your newspaper, website, TV or radio station, or other product might not be felt daily. But do you tell people that?
People often assume owners or financial interests dictate news coverage. So, while you may not be thinking about your ownership and association with a corporation, many of your users are. That’s why it’s important you get on the record about it.
Here are three steps to take.
1. Get clear about who owns your organization
Write about who owns your news organization and make sure it is easy to find. Consider adding it to your organization’s About Us page.
If you are in a position to draw attention to the independence of the decision making in your newsroom, do it. If you’re locally owned, make that clear.
2. Explain what being an affiliate or chain means
Really spell it out. For example: If your station is an NBC affiliate, you don’t have any control over what happens on the “Today” show. Be transparent about what an affiliation means, but also be clear about the limitations. You could also provide information for how people can get in touch with shows you air but don’t have control of (like “Today” or “Good Morning America”). Take inspiration from this piece from our partners at WITF, explaining how an episode of Morning Edition comes together.
3. Share how you make money
If you’re able, get really clear about how you make money. We love this example from The Coloradoan, where they let readers know how vital subscriptions were by talking about their funding breakdown at the time.
It reads: About 60% of our revenue comes from advertising. The other 40% comes from subscriptions. To sustain the future of local news in Northern Colorado, we are dependent upon support from readers, like you.
If you don’t have permission or the ability to talk specifically about the percentages of what funds your work, you could still share in more vague terms that you’re funded from a mix of revenue streams. Here’s an example from WITF: We rely on contributions from listeners, underwriting support from businesses, grants from foundations, and funding from both the state and federal governments.
We have sample language you can copy and use to explain your funding in this Trust Kit. Keep scrolling, or jump ahead to that section here.
Disclose how funding influences coverage
The perception that news is dictated by funding can easily lead to audience distrust, especially since we know the public already makes assumptions about how corporate owners and the newsroom’s financial interests dictate news coverage. We continually hear from the public that news decisions are made based on ratings or clicks, and we don’t often see journalists explaining whether that’s true.
If no one outside your local newsroom has influence over your news products, share that. But there are actually many ways funding and ownership *do* typically influence news coverage, such as:
- You receive funding or grants allocated for specific reporting (e.g. investigative grants)
- You cover fewer topics or stories due to layoffs and reduced staffing
- You prioritize content valued by the members of the public who contribute financially
- You prioritize content that drives subscriptions
- You’re mandated to publish certain editorials or segments each week from a corporate team
- You publish sponsored content that’s controlled by an advertiser, or have content that’s underwritten by an advertiser but the newsroom has editorial control
If any of the above situations apply to you or your newsroom, consider them opportunities to clue people in on how you operate.
Take action
Explain what your funding sources do and do not mean for your organization, and get transparent about any influence money might have. Talk about how you’ll handle any possible conflict of interest, and share how you’ll disclose when you report on funders. Share why people can trust your organization’s integrity by linking to any policies and examples that highlight how you stick to your ethics.
Then, add those explanations in an editor’s note or link to them in stories connected to the funding, sponsorship or advertising.
Feel free to copy any language in the below sample disclosures to help get on the record about this with your audience.
(Looking for more specific ways to disclose your funding? We have more strategies and guidance here.)
Sample disclosure: Receiving grant funding
This reporting was made possible because of [name of grant and organization]. For decades, local news has faced significant struggles due to declining advertising revenue and decreased circulation. [Name of organization] is not immune to these financial struggles, so we’re grateful when organizations like [name] invest real dollars into ensuring we can provide critical information to our community. While we accept grants from philanthropic organizations, we maintain independence between editorial decisions and funding. That means that funders don’t sway the facts of the story, impact which people we talk to for our story or control what gets published. Learn more about how our organization is funded here, and if your budget allows, please consider financially supporting our work [here].
Sample disclosure: Acknowledge shrinking staff
For decades, local news has faced significant struggles due to declining advertising revenue and decreased circulation and [name of organization] is not immune to these financial struggles. Ten years ago we used to have around XX journalists in our newsroom. Today, we only have XX journalists. We are continually prioritizing coverage based on our current capacity. If you think we’re missing an important story, please let us know by reaching out [here]. And, if your budget allows, consider supporting our work [here]. Your dollars go directly to helping ensure local journalists continue reporting on the topics most important to our community.
Sample disclosure: Covering a bill that leads to public funding
Local news has faced significant struggles due to declining advertising revenue and decreased circulation. This bill would allocate [this much funding/support] for local news organizations in the state, including [name of your organization]. While our organization would likely financially benefit from this bill being passed, we remain committed to our ethical standard of maintaining independence between editorial decisions and funding. That means outside funding doesn’t influence *what* we cover or *how* we cover it. We’re committed to continually reporting the facts about this issue, despite the potential impact to us. Learn more about our ethics and funding [here] and if you spot a possible conflict of interest, let us know [here].
Sample disclosure: Sponsored or underwritten content
Sponsored content: As part of our advertising offerings, we publish content produced by and paid for by outside organizations, or advertisers. This content is separate from the content our newsroom produces and doesn’t meet the same standards as our independent journalism. [Link here to an ethics page or policy if you have one!] We’ll always include a disclaimer in these stories acknowledging that it’s sponsored content and will clearly label this content with the word “Sponsored” in the headline. This is considered common practice in the advertising world, and the revenue from this content helps support our local journalism. For more about our sponsored content policy, head here. [Link to policies page.]
Underwritten content: This story/podcast/video was underwritten by [advertiser], meaning it was financially supported by [organization name]. Although this content was paid for by an outside organization, outside funders don’t have input or influence over this coverage. This content is produced by our local journalists and meets the standards of our independent journalism. [Link here to an ethics page or policy if you have one!] We’ll always include a disclaimer in these stories to be transparent that it’s been underwritten. When organizations underwrite content, it helps our news outlet ensure we can continue producing fair and independent coverage. Read more about our policy for underwritten content here. [Link]
Explain why news costs money (if yours does)
Many people don’t consider the need to pay for news. Instead, they have the perception that journalism is, and should be, free.
That’s sometimes true, of course. Plenty of news isn’t behind a paywall. If that’s true for you — if everything you produce is free for anyone — that’s likely a selling point for you.
But as some newsrooms move to stricter paywalls, publish subscriber-only content or produce sponsored (or advertising) content in an effort to bring in more revenue, journalists in those newsrooms are finding themselves needing to more regularly defend why their journalism costs money.
Here are five ways you can do that.
1. Share the value of your news
It’s fair that people often think they can get the news elsewhere for free (because, most of the time, they can!). So why is yours worth paying for? What unique news do you offer to your community? How is your approach different? Is it deeper? More contextual? More focused? Based on staff expertise not available elsewhere? Or is it faster? Does it cover a wider area? Whatever your value proposition or competitive advantage is, explain it, and link to specific examples whenever possible.
2. Talk about which content is free and which is not
How will your news organization decide which content will be free and which content people will pay for? Is there a number of stories per week that will be marked subscriber-only? What if someone can’t pay for a subscription? Or what if there’s breaking news that impacts public safety? Get on the record with these answers publicly so your team can easily point to them when questions and complaints arise.
3. Clearly label stories
Don’t try and play “gotcha” with your audience by avoiding labeling the stories or pretending there’s not a paywall — that likely won’t make anyone want to subscribe. Instead, clearly label any subscriber-only stories. Be mindful of how (or if) that label shows up on platforms beyond your website, like in a newsletter or on social media.
4. Explain shifting revenue sources
It’s natural that most people think ads pay for the news, so explain where your money comes from and why you count on reader support. Talk about how ad revenue has decreased and how that’s put more importance on other revenue streams. (Find language you can copy and paste to explain this below in this Trust Kit).
5. Explain how advertising works
Although revenue streams are shifting, many newsrooms still heavily rely on advertising revenue to stay afloat. While most people know newsrooms make money from ads, they might not know advertising is separate from the newsroom, or that advertisers don’t have control over what the newsroom does or doesn’t cover. Share how you’ll disclose when you report on advertisers and that you’ll still be critical and pursue the facts.
It’s also worth explaining the economic side of advertising to your audience, especially during times of economic hardship. Explain that when local businesses suffer, they spend less money on marketing and promotions. And when community members spend less on goods and services, businesses cancel their advertising budgets, which can greatly impact newsroom revenue. Explain that a surge of online website traffic or viewership is not likely to offset the decline of ad revenue, and that your organization’s finances typically reflect the state of the local economy. These explainers might work best when tied into asks for financial support from the public. (Jump ahead in this Trust Kit where we walk you through how to ask the public for support.)
Once you’ve gotten on the record about why news costs money, publicize the answers and make them easy to find. Think about any other perspectives or complaints people may have. Compile answers in a column or FAQ and then link to it every place a person may bump up against the paywall. Link to it from the box that pops up telling them they need to subscribe. If you’re asking people to pay, make it easy for them to find out why.
To level up: Actively draw attention to it. Link to it from your About Us page, and share it on social platforms and newsletters, inviting conversation from your community.
Ask for public support
Research from Pew confirms that many people do not understand the financial crisis local news is in. This survey found that most adults (63%) think their local news outlets are doing “very well or somewhat well” financially.
This, of course, is far from our reality. The mismatch of perceptions shows that if you want your community to fund your work, you need to communicate clearly about why their support is needed and what will happen if it’s not there. Plus, research has shown if people understand local news lacks sufficient resources, they are more likely to say they’re willing to pay in the future.
Here are two steps to do that.
1. Talk about the cost of your journalism.
We’ve seen that by just talking about the cost of reporting the news, you can build community support around your coverage and build trust with your users.
Below is sample language you can copy and adapt to help talk about the cost of your journalism.
Sample language: Subscription models
In general, about two-thirds of our revenue comes from advertising and about one third from subscriptions. We charge advertisers for the ability to reach and engage with our audiences. Advertisers pay based on how many people their ads will reach and also how many people click on their ads. They want engaged users, not just a lot of eyeballs. Our news organization’s finances typically reflect the state of the local economy. The bottom line is that surges in online traffic to our website are not likely to offset the decline in advertising revenue. That brings us to the other one third of our income: subscriptions. For us to continue to providing high-quality news to our community, we’re relying more than ever on your financial support. If your budget allows for it, please subscribe.
Sample language: Commercial TV
The vast majority of our revenue comes from advertising — xx% on air and xx% online. As news outlets have since the beginning of commercial media, we charge advertisers for the ability to reach our audiences. But it would take a dramatic shift in our broadcast ratings or online traffic to make a real difference in our overall revenue, and our decision making isn’t driven by chasing views. In addition, local advertising is extremely dependent on the local economy. When local businesses suffer, they often spend less money on marketing and promotions. When community members spend less on goods and services, businesses cancel their advertising budgets. The cancellation of just one big ad contract could cost us thousands of dollars a month. Our news organization’s finances typically reflect the state of the local economy.
Sample language: Donation or membership models
In general, about xx% of our revenue comes from advertising and about xx% from donations/membership. We charge advertisers for the ability to reach and engage with our audiences. But local advertising is extremely dependent on the local economy, and even surges in online readership of our website don’t offset the decline in advertising revenue. That means we are more reliant than ever on your financial support to continue providing high-quality news for our community. If your budget allows for it, please sustain or increase your contribution.
Sample language: Address misconceptions about sensationalism
We know some news outlets might intentionally sensationalize news stories for profit, but that’s not the case at [outlet name]. Yes, we do pay attention to which stories resonate most with you because our business model depends on our ability to provide coverage that is consistently interesting, useful and valuable to you. Part of the way we gauge that is by monitoring which stories get clicked on and shared most. However, it would take significant spikes in advertising (or ratings) to influence our overall revenue. And at [outlet name], revenue considerations simply do not take priority over meaningful public service.
2. Share how you rely on public support
Anytime your newsroom asks the public to pay for your news — through subscriptions, memberships or donations — you have an opportunity to share the unique value your newsroom offers or explain why you rely on financial support from the public
At Trusting News, we get excited when we get to test how trust-building strategies can influence revenue. Below are some experiments we’ve done with partner newsrooms related to funding:
- Through an experiment with News Revenue Hub, we confirmed that different messaging worked better for different organizations, highlighting how each newsroom has unique relationships with their own audience.
- With PolitiFact, we found adding mission language and behind-the-scenes information increased clicks on donation buttons.
- The Coloradoan found including individual reporter mission statements alongside subscription asks helped increase subscriptions.
Here are three strategies to try when asking for money with sample language you can copy. (We suggest you look at the below recommendations and decide which strategies might have the most impact with your own products and audiences.)
Here's our ethics and integrity
We can’t assume people understand the ethical framework behind our work, the thoughtfulness of our decision making or the goals that drive us. We need to articulate them.
Here’s language you can copy and adapt:
Many people are skeptical about the integrity and ethics of news outlets like us, and we don’t blame them. Historically, journalists haven’t always done the best job of being transparent about their own work — and that’s why we’re so committed to doing things differently at [Org Name].
Our work is based on a foundation of ethical principles and values that drive our day-to-day decisions.
A few things we believe (customize these):
- Our commitment to accuracy.
- Our independence from political, financial and personal interests.
- One additional policy tied to ethics, transparency, etc.
Just as we hold other organizations to account in our reporting, we invite you to hold us accountable for staying true to these values and ethics — and if you value journalism that is truly transparent and answers to you, we have a favor to ask. [funding appeal]
Here's why we need your money
Your audience doesn’t know where your money comes from. They don’t know how your business model has shifted, what revenue sources have dried up or emerged, or what percentage of your budget relies on community support. Sharing that information can help you tell a compelling story of why their support is vital to your ability to serve your community.
Here’s language you can copy and adapt:
You probably know that our work would not be possible without [contributions / donations] from people like you. Today, as we ask for your financial support, we want to also share some information about why we rely on that support.
Our work is funded by several primary sources:
- xx% Members / donors
- xx% Large donations from individuals and foundations
- xx% Events
- xx% Advertising
As you might imagine, our primary expense is our staff. So one way to look at that breakdown is that of our xx member team, xx of them have their salaries paid by you, the people they aim to serve with their journalism. This revenue is extremely important to us, because it shows that the work we’re doing is valued by the people we do it for.
We're committed to covering a specific topic
What do you cover better than anyone else? Articulate that commitment, with examples of previous coverage, the impact it has had on the community, and your goals moving forward.
Here’s language you can copy and adapt:
Here at [Org name], we cover a lot of issues we feel are deeply important: X, Y, Z, and more. Today, we want to talk a little bit to you about our [topic] coverage.
Readers like you have told us in a multitude of ways how much you value stories around [topic]. These stories are highly read, with long engagement time — which tells us people aren’t just clicking headlines but are diving deep on [topic] stories. In our most recent annual audience survey, we heard that [topic] is something people turn to us for and see as highly valuable. And when people donate to us, we see [topic] cited time and again as what inspired them to give.
In addition, we see evidence that the coverage makes a difference. For example, XYZ.
We want to go even deeper on [topic] In the next year, we want to do [project] and investigate [issue], just to name a few things. (And we’ll continue to incorporate your questions and priorities . Share them anytime by responding to this email.) But we can’t do this work without your support.
See how other newsrooms do it
For inspiration, here are some examples of how newsrooms and content creator journalists have talked about funding and ownership. For more examples, check our our example database.
We’re here to help!
We know money can be tricky to talk about (or to get *approval* to talk about). If you need some help and guidance on how to get on the record about your funding, we’re here to help. If you’re already doing this type of transparency work around your funding, we’d love to see examples!
Reach out to our team via email, or get in touch on X, BlueSky or LinkedIn.
This Trust Kit was last updated Jan. 14, 2025.