Hartford Business Journal

8 Hartford Business Journal • February 8, 2016 www.HartfordBusiness.com CT Nonprofit News Organization's Financial Health REVENUES 2009 2010 2011 2012 2013 2014 Connecticut News Project* $605,995 $849,744 $892,071 $758,254 $806,305 $1,166,590 Connecticut Public Broadcasting Network $20,185,334 $20,729,699 $18,138,194 $19,636,482 MARGINS 2009 2010 2011 2012 2013 2014 Connecticut News Project $453,188 $107,814 $(8,339) $(181,681) $(177,212) $331,735 Connecticut Public Broadcasting Network $2,275,577 $954,620 $1,359,075 $1,372,295 * C T N E W S P R O J E C T I S T H E N O N P R O F I T P A R E N T O F T H E C O N N E C T I C U T M I R R O R A N D I T S S I S T E R W E B S I T E S . S O U R C E : G U I D E S T A R 9 9 0 I R S T A X F I L I N G S FOCUS NONPROFITS two newer sister websites, CT Viewpoints (www.ctview- points.org) and TrendCT (www.trendct.org), rose more than 25 percent last year. Alone, The Mirror also posted double- digit increases, but at a lesser rate than the group, he said. "I think we've become very useful and have become a good part of the stream of good journalism that's done in Connecticut," Albert said. Launched in 2009, the Connecticut News Project Inc., which publishes The Mirror and sister sites, reported its highest year for revenues in 2014 ($1.2 million), according to IRS filings, and 2015 will be comparable and in the black, according Bill Cibes, co-president of the project's board. The Mirror's last six IRS filings showed half with rev- enues exceeding expenses, including a $331,735 mar- gin in fiscal 2014. The three prior years, The Mirror lost money, but early grants served as reserves helping avoid any fiscal stress, Cibes said. "The best practice and one we try to follow — the expenses for each year are matched by the revenues for that year," Cibes said. "We've been pretty success- ful in following that model." The Mirror continues to enhance its product and grow, he added. "We started off with the intent to engage the citizenry of Connecticut with journalism that matters and we continue to do that," Cibes said, noting increasing readership, reach and influence as other media pick up Mirror stories. A key question that remains, however, is longevity. Nonprofit news sites, which have grown in number across the U.S. in recent years, face the stiff task of finding rev- enue opportunities beyond just grants, which account for a majority of their budgets but also can be fleeting. A 2013 study by the Pew Research Center said many nonprofit news organizations were working to diversify their revenue streams, but were struggling to find the time or resources to do it with such limited staff. Cibes said about 5 percent of The Mirror's revenues come from syndication fees charged to other media that use its content; 5 percent from advertising; 10 percent from individual donations; 10 to 15 percent from spon- sorships; and the rest from grants. Nonprofit radio Jerry Franklin, president and CEO of Connecticut Public Broadcasting Network (www.cpbn.org), the parent company of Connecticut Public Television and WNPR, also is optimistic about the future. "Business is booming for us," Franklin said, citing double-digit audience growth last year and strong rev- enue gains. The nonprofit reported $19.6 million in rev- enue in fiscal 2014, up 8 percent from a year earlier. Its $1.4-million margin was largely flat from 2013. The audience growth includes the combined operations of radio, online, "What's On!" magazine supplement and CPTV, which includes CPTVKids, CPTV Sports and CPTV4u. "And much of the audience growth … came from our news focus, whether it's John [Dankosky] or Colin [McEnroe's] show or Faith [Middleton's] foodie follow- ers," he said. "We've made a conscious effort to continue to invest in journalism here." "We clearly are trying to take advantage of what some of the commercial stations are not doing," Franklin said. "When I first came to town 30 years ago, there were several radio stations with a really robust local news team and we know what's happened to those stations — they're no longer doing local Connecticut news, but we're trying to fill that void." The newspaper industry has been hit, too, said Franklin, who reads four papers a day and is a strong proponent of their importance in society. "People are still hungry in Connecticut for real news, unbiased … as much as humanly possible unbiased news," he said. "Yes, we have a good product, but we are trying to take advantage of some of the weakness in the marketplace." CPBN is serious about nonprofit journalism in the state, he said, noting investments locally in the news product and CPBN's plan to expand its reach beyond the Hartford-New Haven marketplace. CPBN is working to open an innovation center in South Norwalk that will include a news bureau. Helping support that bureau and CPBN's other community engagement there will be South Norwalk-based Palace Productions, a for-profit company CPBN acquired last year, creating a joint venture called Palace Productions MediaVision. The new company offers strategic marketing communications, design and media production services to businesses. Revenue from Palace will help pay the rent for the South Norwalk location and support CPBN's commu- nity engagement, which includes the news, plus educa- tion and veterans training programs. CPBN also is forming an association with the Stam- ford Innovation Center to develop the South Norwalk Center for Innovation, essentially an incubation space for individuals or startup companies who could "live" with CPBN and receive administrative support, graphics services and the like, in return for a piece of equity in the company. As those companies become profitable, profits would be invested into CPBN community engagement in the area, including the news, Franklin said. The center, which Franklin hopes to open in summer or early fall, would help the economy by growing new companies while helping support CPBN's mission and expand and strengthen its ties in the state. He believes the model is a first in his industry. "Public media's had 50 years now, in some markets 60 years, of developing a rapport, developing a reputa- tion, so people trust us and we take that very seriously and since we don't have profit demands on us, a good year for us is break-even," he said. The founder Paul Bass is the founder and editor of the New Haven Independent (www.newhavenindependent.org), an Q&A Merger aims to give nonprofits louder, sustainable voice Q&A talks with Jeffrey Walter, interim CEO of the Connecticut Community Nonprofit Alliance. Q: The Connecticut Asso- ciation of Nonprofits (CT Nonprofits) and the Connecticut Community Providers Association (CCPA) have agreed to a merger of the two organizations, to create a new 600-member group called CT Community Nonprofit Alliance (CT Nonprofit Alli - ance). Why was the merger necessary? A: CCPA and CT Nonprofits have repre- sented a wide range of nonprofit organizations for more than 35 years. Connecticut's nonprof- its have always battled for adequate state funding. But with the 2008 recession and slow economic recov- ery, there is even more pressure today to stretch limited state dollars. As the CT Nonprofit Alliance, our collective voices will be stron- ger and more effective, advocating for funding, policies and supporting best business practices. Q: One of the organization's stated goals is to maximize lim- ited state dollars. Given that Gov. Malloy has proposed $570 million in funding cuts in fiscal 2017, what are some of the goals of your group when it comes to funding? A: Advocacy in support of state funding will be a priority for CT Nonprofit Alliance. Our state funded members constantly worry that their funding will be cut. CT Nonprofit Alliance strives to be a louder, more effective voice for non- profits. The more policymakers see the impact of state spending on the individuals and families who rely on nonprofits, the better decisions they can make. We have been successful in recent years in preserving bare- bones funding for critical health and human services. Our goal is to protect that funding in the short term, and to work with the state to support and expand more cost- effective services in the long term. Q: Besides funding, which is the 800-pound gorilla of course, what other issues might you be tackling in the upcoming session? 1. Contract reform: Connecti- cut is the second worst in the nation for imposing needlessly complex contract-reporting requirements. Additionally, we're third worst for changing contracts in mid-stream, and sixth worst when it comes to the state not covering the full cost of contracted services. 2. Institutional care versus best-practice care: There is mount- ing evidence that out- comes for individuals living in community settings are bet- ter than for those in institutions. We need to explore options that are in the best interests of these populations and also save taxpayers money. 3. The Gover- nor's Second Chance Initiative: We laud the governor's leadership to recognize that suc- cessful re-entry into society is a moral obligation of our state. However, critical com- munity support services for these individuals must be protected in the state budget or the initiative's success will be jeopardized. 4. Pursuit of the Massachusetts model to fund the cost of services with a focus on the reality of the cost of living: Chapter 257 is the law in Massachusetts that requires the state to determine and pay non- profits the true costs of delivering health and human services after decades of chronic underfunding. This landmark legislation could be replicated in Connecticut and would establish a path to sustain - ability, if not prosperity, for our nonprofits. Q: The mission of the new organization will be to advocate and build capacity for commu- nity-based, nonprofit organiza- tions. Given your size, is there a risk that groups within the organization may be working against each other on certain issues? A: Our combined work has long reflected a need to advocate for issues that our members have in common and to understand and navigate those that are different. That is the challenge of any asso- ciation, and it will continue to be part of the work of CT Nonprofit Alliance. Nonprofits, collectively, are sig- nificant players in the state econo- my. With such a large membership, we are now in a much stronger place to give voice to the sector as a whole and be heard. n JEFFREY WALTER Interim CEO, Connecticut Community Nonprofit Alliance from page 1 Nonprofit media evolves Jerry Franklin, president and CEO, Connecticut Public Broadcasting Network Continued on page 10

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