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Isthmus is a nonprofit, pass it on!

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"Maybe you should take my blood pressure again,” I joked to the dental hygienist.

I had just learned, during some pre-procedure chit-chat about upcoming stories in Isthmus, that my dentist did not know that the paper had become a nonprofit more than four years ago. He had some vague notion that we were owned by the folks who own the Mallards.

I hadn’t heard that one before, but the timing was interesting. That very morning my co-workers and I had discussed how often we talk to people who have no idea that Isthmus transitioned to a nonprofit organization during COVID. Some think we’re still owned by Vince O’Hern, who co-founded the paper in 1976, or the trio that took over in 2014, Jeff Haupt, Craig Bartlett and Mark Tauscher — yep, the former Green Bay Packers offensive tackle. All have supported the paper’s transition in various ways.

Some people also have no idea the paper ceased publishing in print during the pandemic. Others think we still publish in print weekly. Many think we are still a staff of at least 25-30 people.

It’s frustrating but understandable. For more than four decades, Isthmus was privately owned and came out like clockwork every Thursday. But things changed when COVID-19 hit. The owners determined that they did not see a financial way forward and a small group of former staffers planned a transition to a nonprofit model. We tried to keep people apprised of our journey through our website and newsletters, but people are busy and have a lot on their minds.

Becoming a nonprofit is not just a change in tax status for us. It drives our coverage and has sharpened our community focus. Case in point: This month, we publish our second annual Nonprofit Issue, which shines a light on the good work being done in our own back yard, and the accompanying Volunteer Guide, which helps connect nonprofits with community members who want to donate their time to a good cause.

Nonprofit status also means that we depend on reader donations to support the work we do, so it’s important that readers understand who we are. In April we will celebrate five years as a nonprofit and 50 years as a newspaper. It’s a good time for a refresher.

1. We are a nonprofit, 501(c)(3) organization. Isthmus has not been privately owned since early 2021. We received our official determination letter from the IRS on March 31, 2021, informing us of our new status as a “public charity” under the Internal Revenue Code. That means we are eligible to receive tax-deductible donations. It also means we are independent. No corporation or billionaire owner is calling the shots. We are.

2. We are small. We are no longer a staff of 40 or even 30 or 20, depending on what decade we’re talking about. We have six full-time staffers, one part-time sales rep and a part-time sales rep who is an independent contractor. An independent contractor also handles our distribution efforts. For a bit of comparison: In its heyday, Isthmus had four full-time staff writers, five section editors (i.e. news editor), an editor-in-chief and a copy editor. There was a sales division devoted to classified ads (help wanted, i.e.) and one to display ads. There were also designers, a creative director, an office manager and other administrative staff and a full-time circulation manager. Since we returned to print as a monthly in August 2021, staffers help deliver the papers.

3. We do not have an office on King Street or State Street. We have a membership at StartingBlock, a co-working space on East Washington Avenue where a couple of us work and where we meet for weekly staff meetings, board meetings and other events. For many years Isthmus had a visible perch at 101 King St., where the restaurant Lucille is now located. From 2015 to 2020, our offices were at 100 State St.

4. We have one staff writer. I often get pitches asking if I can put “one of” our reporters on a story. We do not have a team of reporters. We have one staff writer, Liam Beran, and he is the only staffer whose sole responsibility is to report and write stories. He is passionate and works hard but can’t cover everything. The rest of us also write in addition to our editing and administrative tasks. We also work with freelance contributors — novices and veterans alike — providing a platform for ongoing coverage of issues they are passionate about or space for that one personal essay they’ve been wanting to write. This relationship with writers is unusual in the market. We also work with interns each semester, helping train the next generation of journalists.

5. We publish monthly in print, but that’s not all. Our stories can also be found on isthmus.com and we produce three popular newsletters — Word of Mouth, On Tap and Isthmus Insider — that are emailed directly to your inbox.

6. We run ads. There is a misconception that nonprofit news outlets can’t accept advertising or sponsorships. That’s not true. But we can be on the hook for taxes if there is a direct ask (T-shirts on sale for $20). These partnerships, which make up 60% of our revenue, support our bottom line and connect local businesses and groups with the community.

7. We write and edit stories the old-fashioned way. We do not use AI to create content, though many of us use AI-driven transcription services and sometimes use ClaudeAI or ChatGPT to brainstorm headline ideas. But when it comes to writing and editing, it’s all done by humans and checked by humans. There are usually three sets of eyes checking every story draft. We are in the process of developing an AI policy.

8. We no longer produce large food and drink events. At one point before COVID Isthmus hosted a beer and cheese event at the Alliant Energy Center that drew 6,000 people. Events were part of an effort to diversify the paper’s revenue stream, which otherwise relied on advertising. But they were a big lift. Isthmus had dedicated staff responsible for organizing and running both large and small events. We now don’t have the capacity to run large events, and see smaller gatherings aimed at engagement, including our Community Newsrooms, as more closely aligned with our mission.

9. We have a board of directors. We currently have nine board members, whose responsibility is chiefly fiduciary. Members act as ambassadors to the community and help raise money for the organization. They are also important sounding boards and bring different skills to the table. Treasurer Kirsten Houghton, for instance, is a CPA who shepherds our taxes, helps prepare our annual budget, and regularly reviews financial statements prepared by our third-party bookkeeper to make sure there are no irregularities. The board is not involved in editorial decisions.

10. We rely on reader support. As with most nonprofits, fundraising is a constant. We offer several ways to contribute, including online and by check. We have membership tiers and an editor’s club, for contributions of $1,000 and up. Some people pay annually; others monthly. One very generous supporter donates stock every year. Increasingly, readers are using such “tax-savvy” methods as donor-advised funds and qualified charitable distributions to contribute. We just launched our year-end NewsMatch fundraiser, which is our most important fundraiser of the year, and are building a community match to leverage as much as we can through the Institute for Nonprofit News grant. If you are interested in joining that effort please touch base with me ([email protected]) or publisher Jason Joyce ([email protected]). 

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