Nonprofit Local News Fosters Civic Health and Prevents Corruption

The quiet power of local journalism lies not in breaking news, but in the persistent, often unglamorous act of simply being present. This conversation with Michael Phillips, founding editor of The Richmonder, reveals how a nonprofit news outlet can fundamentally shift civic engagement by committing to consistent, watchful coverage, even when the immediate payoff is unclear. The hidden consequence of widespread local news decline, Phillips argues, is not just a less informed populace, but a more corruptible and costly one. This analysis is for anyone in media, civic leadership, or community organizing who seeks to understand the systemic impact of local news and how to rebuild it from the ground up. It offers a blueprint for creating durable community assets by embracing the unsexy work that truly matters.

The Invisible Hand of Oversight: Why Absence Breeds Cost

The most striking implication of Michael Phillips' work with The Richmonder is the profound, yet often overlooked, economic cost of a local news vacuum. While many lament the loss of local papers as a blow to civic pride or information access, Phillips points to a more tangible, systemic consequence: increased financial inefficiency and corruption. He highlights a Brookings Foundation study suggesting that towns without a newspaper incur significantly higher borrowing costs over time. This isn't a mere academic curiosity; it's a direct, measurable impact. The underlying dynamic is simple yet powerful: when no one is watching, opportunities for graft and mismanagement flourish.

Phillips frames this not as an indictment of individual actors, but as a predictable systemic response. "We're all different when we're being watched," he states, underscoring the deterrent effect of consistent journalistic presence. The Richmonder’s commitment to covering City Council meetings, an endeavor many larger outlets have abandoned, serves as a prime example. By simply showing up and reporting "here's what happened today," they create a civic feedback loop. This persistent, unsexy work of documentation and accountability builds a foundation of trust and transparency that, over time, can lead to more responsible governance and, as the study suggests, more efficient public spending. The immediate payoff isn't a scoop; it's the slow, steady, and often invisible work of preventing problems before they arise. This contrasts sharply with the conventional wisdom of prioritizing flashy, high-impact stories, which often fail to address the foundational need for consistent oversight.

"we cite a brookings foundation study when a town doesn't have a newspaper it ends up costing itself significantly more in costs to borrow money over time because corruption is just inevitable i mean we're all we're all different when we're being watched paul right"

-- Michael Phillips

The challenge for The Richmonder, and for any local news startup, is that this crucial function is not immediately profitable or attention-grabbing. Phillips acknowledges the difficulty in explaining this value proposition to potential investors or even the public, especially when competing against the allure of immediate, sensational news. He contrasts his nonprofit's mission with the market pressures that have decimated traditional newsrooms, noting how national entities like Axios, while doing good work, still operate within a framework where national decisions can influence local output. The "secret sauce," as Phillips calls it, is deeply local engagement-- reporters living in the community, building relationships, and processing information through a local lens. This is inherently difficult to scale or export, suggesting that true local impact requires a commitment to place that transcends purely business-driven models.

The "Blank Canvas" Advantage: Agility in a Declining Landscape

Phillips’ transition from a long-tenured role at a legacy newspaper to founding The Richmonder highlights a critical systemic advantage of the startup nonprofit model: unparalleled agility. While he speaks fondly of his time at the Times-Dispatch and cherishes the relationships built there, he candidly admits to seeing the "decline of local media" and recognizing that the traditional model was unsustainable. The established newspaper, despite its strengths, was bound by legacy structures, brand constraints, and a reluctance to "rock the boat." This created a bottleneck for innovation, where even good ideas could be stifled by the inertia of the organization.

The Richmonder, by contrast, offers a "blank canvas." This freedom allows for rapid iteration and adaptation, essential in the volatile media landscape. Phillips enthusiastically describes the ability to "do whatever we want," to "turn the boat" as needed. This agility is not just about operational flexibility; it’s about a fundamental ability to align the organization’s efforts with the evolving needs of the community and the media ecosystem. For instance, their decision to publish a newsletter three times a week was a strategic choice made after reader surveys indicated a preference for more thoughtful, processed content over the relentless "deadline news" cycle. This responsiveness, coupled with daily website posts and a strategic (though currently underdeveloped) social media presence, demonstrates a capacity to experiment and pivot that is often impossible in larger, more established organizations.

"we can do whatever we want like it's a blank slate it's a blank canvas we can turn the boat as as we're nimble -- and i love that energy about this startup space and i love seeing what other people are creating too"

-- Michael Phillips

This startup energy is contagious, as evidenced by their willingness to share ideas with and learn from other nascent news organizations, like the group in Fredericksburg. This collaborative spirit, born out of necessity and a shared mission, stands in stark contrast to the competitive, often siloed, environment of legacy media. The "secret sauce" of local connection is difficult to export, but the agility to serve that local connection is a transferable advantage. This agility, when coupled with a clear mission, allows organizations like The Richmonder to not only survive but to actively shape the future of local news, rather than merely react to its decline. The delayed payoff here is building an organization that can endure by being relentlessly adaptable.

The Unsexy Payoff: Building Sustainable Revenue Through Deep Roots

The financial success of The Richmonder, exceeding revenue expectations by 11% in its first year and projecting a $650,000 budget, is a testament to a strategy that deliberately eschews the "sexy" funding priorities in favor of deep, local roots. Phillips is refreshingly candid about the limitations of relying solely on small monthly donations from engaged readers, acknowledging that "we cannot keep the lights on at that number." The real engine for sustainability, he explains, lies in securing larger donors, corporations, foundations, and national groups. However, the path to these larger investments is paved by the organization's undeniable local impact and its commitment to being "unapologetically general news for a general audience."

This commitment to broad appeal, while potentially less attractive to niche grant-makers, is precisely what builds the broad-based support necessary for long-term viability. Phillips contrasts this with the market pressure to consolidate and specialize, which he believes dilutes the unique value of local news. The Richmonder’s strategy involves actively engaging with the community--at coffee shops, through newsletters, and by having reporters who "live in the community." This grounded approach makes the case for their indispensability, not just as a news provider, but as a civic asset. The impact report, detailing their coverage of City Hall and the subsequent return of multiple media outlets to that beat, serves as tangible proof of their influence.

"we have 1200 people giving us money right now which is awesome beats my expectations for the first year -- 1200 people at 10 a month you can do the math paul we cannot keep the lights on at that number -- and so we need larger donors we need corporations we need foundations"

-- Michael Phillips

The delayed payoff of this strategy is the creation of a durable revenue model built on genuine community value. It requires navigating the "boomer bust" cycle of grant applications and major donor asks, but the underlying principle is sound: demonstrate undeniable local impact, and the funding will follow. Phillips’ willingness to share their successes and challenges with other news leaders underscores a systemic understanding: the survival of local news is a collective endeavor. By focusing on the unsexy, foundational work of consistent coverage and community engagement, The Richmonder is building a moat of trust and relevance that larger, more transient funding sources can only admire from afar. This is where immediate discomfort--the struggle for funding, the focus on less glamorous beats--yields a significant, lasting advantage.

Key Action Items:

• Immediate Action (0-3 Months):

  • Deepen Community Engagement: Actively solicit feedback through surveys and direct conversations with readers to understand their evolving information needs and preferred content formats.
  • Develop a "Why We Matter" Narrative: Craft compelling, concise messaging that clearly articulates the economic and civic costs of local news absence, backed by data (like the Brookings study), for use with potential major donors and foundations.
  • Strengthen Local Partnerships: Formalize collaborations with other local media outlets (e.g., The Richmond Free Press) to cross-promote content and share perspectives, demonstrating a commitment to a healthy local media ecosystem.

• Short-Term Investment (3-9 Months):

  • Invest in Development Capacity: Hire or contract a dedicated grant writer or development professional to systematically pursue foundation and corporate funding opportunities.
  • Experiment with Niche Content: While maintaining a general interest focus, explore producing limited, high-impact content series on specific, underserved local issues that can attract targeted funding and demonstrate specialized impact.
  • Build a Local Business Advisory Board: Convene a group of respected local business leaders to provide strategic guidance and act as ambassadors for The Richmonder within the corporate community.

• Longer-Term Investment (9-18+ Months):

  • Develop a Sustaining Donor Program: Focus on converting a portion of monthly donors into larger, recurring annual commitments by demonstrating consistent impact and providing exclusive engagement opportunities.
  • Explore Ancillary Revenue Streams: Investigate non-advertising revenue opportunities such as events, workshops, or data services that leverage the organization's unique local knowledge and community trust.
  • Establish a "Watchdog Fund": Create a dedicated fund, potentially with specific donor commitments, for investigative and long-term accountability journalism that requires sustained resources and may not have immediate public appeal but offers significant downstream civic benefit.