Comma Community Journalism Lab hit its $2 million fundraising goal, allowing The Spokesman-Review to move forward with its shift to nonprofit ownership. The transition aims to preserve local journalism by adding philanthropy as a "fourth leg" to the newspaper’s business model.

Following more than a century of Cowles family ownership, the Cowles family has pledged to match the fundraising efforts with a $2 million grant and transfer ownership of the newspaper to the nonprofit — a process that will take an estimated 90 days to complete, explains The Spokesman-Review Publisher William "Stacey" Cowles.

The iconic Spokesman-Review Tower, at 999 W. Riverside, will remain under the ownership of the Cowles Co., he adds.

"It's another piece to the puzzle," Cowles says. "We still have a lot of work to do though."

True to its name, the Comma Community Journalism Lab is acting as a testing ground. By making their business plans, models, and other details available for reference by other outlets, they are effectively offering a case study on how a century-old, family-owned paper can successfully move to nonprofit stewardship while keeping its brand, content, and ownership local, explains Cowles.

Cowles says the transition to a nonprofit was prompted by the economic realities that have reshaped the newspaper business over time.

"The newspaper industry took a hard hit with the onset of the internet and has declined since," Cowles says. "The Spokesman-Review is pulling 70% less ad revenue than it did nearly 20 years ago."

Traditional advertising revenue, once the financial foundation of newspapers, continues to fall, and Cowles asserts that these have become increasingly difficult to secure as businesses move toward digital marketing platforms.

"Revenue is very tough to come by because people aren't as confident in advertising in traditional print media," Cowles says. "Advertisers can control all of the ad provisions when they do it online and can see statistical feedback with internet ads. It is a very hard battle for print media."

Despite those challenges, Cowles says newspapers remain critical civic institutions, arguing that communities lacking reliable news coverage can experience broader consequences. 

"In areas that don't have stable active news coverage, the political atmosphere can become disconnected," he says.

Spokane's political participation is considered active and is influenced in part by its active media environment, adds Cowles.

"Spokane has an above-average voter population and more candidates run for office because of the daily coverage," he says.

Cowles contends that the nonprofit model offers the strongest path forward because it keeps the newspaper connected to the community it serves.

"Plus, it really serves to honor the wishes of my great grandfather. He wanted to ensure the community would always have a stable source of accurate information," says Cowles.

Despite having opportunities to sell, the Cowles family ignored interest from hedge funds, arguing that such models "never end well" for local journalism, he says.
Investment groups often reduce operations or close publications while seeking value elsewhere in the real estate or other assets, he contends.

Rob Curley, executive editor of The Spokesman-Review, describes the nonprofit approach as an effort to preserve local journalism while building a sustainable future for the organization. Curley also leads Comma as its founder and president. A hybrid approach plan has been in the works for 12 years, Curley says. The idea started when he was editor of the Orange County Register, in California, and has evolved since.

"When a publication has engagement, ads, and revenue, that is only three legs of the stool," Curley says. "When you add philanthropy, that adds the fourth leg, and brings new, stable opportunities."

Curley maintains that engagement is still a priority, explaining that inviting the community in the newsroom to discuss what gets reported has already proven beneficial.

Converting to a nonprofit model will allow supporters to donate and receive an active subscription for donations. The hybrid approach has already netted nearly $1 million in donations within a year and can provide long-term revenue, Curley says. Donations are expected to increase year over year, he adds.

"You can go right to the site and see the numbers in real time," Curley says. "You can also see that some of these donations are $25,000 or $50,000, and that is for the public good." 

This isn't the first time the Spokane community has come together to support a similar project, says Comma board member Bill Simer, a retired certified public accountant who was recently named an Icon by the Journal. For instance, the Spokane Symphony has been operating as a nonprofit for decades. In 2000, supporters worked to buy the Fox Theater for $1.1 million, followed by another $31 million raised to renovate the space to provide a stable venue for the symphony, Simer says.

"This community has always cared about and come together when situations like this arise," he says.

The ownership transition also comes as The Spokesman-Review has increasingly aligned with national efforts intended to strengthen local journalism, Curley says. The newspaper has worked with Report for America, a national initiative that places journalists in local newsrooms to cover underreported communities and topics.

The newspaper previously received support to expand its reporting in Olympia, Washington, and Washington, D.C., becoming one of the smallest newspapers in the nation with a dedicated congressional correspondent focused specifically on Inland Northwest issues, Curley says.

Report for America has evolved into a significant player in efforts to address newsroom losses nationwide, Curley says. According to statistics on the website, Report for America, of Boston, has placed over 750 journalists into more than 400 newsrooms in nearly every state, Puerto Rico, and Guam. The program also helps pay portions of journalists' salaries and has helped generate nearly $60 million for participating news organizations since being founded in 2017. Report for America data also shows over 80% of program alumni are still working in the journalism field.

The broader decline in journalism employment has been steep. According to Report for America data, newsroom employees dropped by 57% between 2004 and 2020. The Spokesman-Review has received four Report for America positions in recent years, helping expand coverage areas regarding health care, state government, and federal policy issues affecting the region. Curley says the program has even sent reporters to cover international stories such as the Russia-Ukraine war.

Founded in 1894, The Spokesman-Review remains Eastern Washington's largest newspaper.