Awarding Funds to For-Profit News Organizations

Philanthropic foundations typically award grants to 501(c)(3) nonprofits, organizations recognized by the IRS as having a charitable purpose. While a growing number of news outlets are nonprofits, many newsrooms operate as for-profits. In fact, of the 6,000 local news outlets across the country, and only about 500 are nonprofits. Press Forward local chapters and aligned funders should be open to and understand how to award grants to for-profit news organizations. Funding for-profit newsrooms can be a powerful way to support impactful, community-serving journalism and meet your foundation’s goals. 

Although awarding funds to for-profits is similar to nonprofit grantmaking, it requires some additional steps to ensure compliance with IRS regulations. This guide includes all the steps you need, from designing inclusive applications and reaching out to for-profit organizations to getting higher-ups on board and processing grant awards.

The Basics

• Nonprofits generate revenue to support a mission-driven purpose, focusing on charitable activities rather than profit. Because they exist solely for public benefit, grants to tax-exempt 501(c) (3) nonprofits can be allocated toward general operating support.
• For-profits generate revenue by creating products and services that meet consumer needs. Because for-profit organizations do not inherently have a charitable purpose, grants are restricted and extra due diligence is required to ensure that funds are used solely for charitable activities.

Download the full guide below.

This resource is provided by Press Forward. This toolkit was written in fall 2024 by Erin Mishkin and Katie Hawkins-Gaar. This is a living guide that will be periodically updated as new information becomes available and new insights can be shared from the field. If you have comments or questions about the guide, please reach out by emailing hello@pressforward.news.