Nonprofit newsrooms are a response to the news industry's financial difficulties transitioning to the digital economy. Foundations and other civic-minded investors fund investigative and socially important journalism that democracies depend on, but that can no longer be cross-subsidized by control of advertising channels like classified ads.

Suggested reading:

• Media Impact Funders' report, Community Foundations & Media.
• A 2023 study "examines the role of philanthropy in American journalism found strong growth in support for nonprofit news over the past five years, an increase in funding to for-profit newsrooms, and a growing focus on communities of color. At the same time, the study reveals the need for more newsrooms to disclose donors and adopt clear conflict-of-interest policies to protect editorial independence and public trust."