Newspapers Should be Endowed?!

The theory expressed in the op-ed piece "News You Can Endow," written by David Swensen and Michael Schmidt, is one I've never heard before. In the piece, they argue that in order for newspapers to survive their current economic situation, newspapers should become endowed just like colleges and universities. They reason that endowments would increase newspapers' independence and allow for greater financial stability. Furthermore, Swensen and Schmidt agree that there would be less pressure on newspapers from stockholders or advertisers, thereby making news organizations more honest and better run. In theory, I think this idea is very sound; in fact, by their logic, the only negative aspect would be that newspapers could no longer endorse a political candidate due to legal constraints on endowments. Additionally, I -- as well as most others -- agree that newspapers' current business model must be amended or updated in order for newspapers to remain viable in today's digital age where most people get their news from the Internet. However, the amount of money needed to finance a single newspaper, much less all of the newspapers in the nation, is extraordinary. Who will finance these papers? In the article, they mention that The New York Times would require an endowment of $5 billion -- certainly no small amount of money. Additionally, while papers would no longer have to answer to shareholders, would those putting their money into the paper want something in return? In the end, newspapers may find themselves answering to a whole new group of people. While Stensen and Schmidt make a strong argument for endowments, I'm not 100 percent sold on the idea. Fundamentally, however, their argument has resonance: Newspapers must change their business models to survive.