New reward — “Get our Homicide Data!” a smart idea hits the real world on Kickstarter

Crime-Scene-Tape3NOTE: I don’t know exactly what happened but this post was up and was kicked down along with the rest of my site. The Homicide KickStarter project was successfully funded Sept. 13 by 1,110 backers who pledged $47,450 total. As it turns the founders didn’t get any bites from newsrooms that wanted to buy their  homicide data crunching services, but the following items did sell. 

Pledge $500 ore more.
4 Backers Limited (6 of 10 left)

Lunch with Homicide Watch founding editor and 2013 Nieman-Berkman fellow Laura Amico at Harvard University in Cambridge, MA.

Pledge $1,000 or more

 1 Backer Limited (29 of 30 left)

Year in Review Sponsor. You get a preview of our 2012 Year in Review, plus a skype chat with the reporters putting it together, plus a sponsorship message, link and image on the splash page. This sponsorship won’t expire. You’ll also receive the entire collection of Year in Review stories packaged as a ebook.

Pledge $5,000 or more

 1 Backer Limited (4 of 5 left)

The Homicide Watch team will guest teach a class or lecture for an audience of your choice.

Looks like some folks with money see value in what Homicide Watch can teach them about being innovative in journalism.
Read my Huffington Post column on Homicide Watch.

 A One Year Student Reporting Lab within Homicide Watch DC by Homicide Watch » New Reward: Get Our Data! — Kickstarter.

This provokes some questions. The big resistance by government to opening data back when I was in government was that data was a potential revenue source for government. Of course, they were not necessarily thinking of crime data in this way, but other types of data was considered to be very valuable and government was making big money by selling it. Now here’s a new groups selling it, so how is that different?  so

Back in June, we published a six-month review of homicides in 2012: Decreases in Gun, Domestic Violence, at Forefront of 6-month Homicide Decline.

The story, which included a map and summation of half a year’s stats, took us about four hours to complete. We never had to file a FOIA. We just asked questions and our database started pouring out answers.

  • How many murders have happened this year, compared to this time last year?
  • Who were the youngest and oldest victims?
  • How many cases have at least one suspect under arrest?
  • What is the racial and gender makeup of victims (and suspects)?
  • Where did most homicides happen?

These are questions every news organization should be able to answer. We collect this information as part of our reporting process and store it in our custom-built database. Now you can use the same data.

For every victim and suspect, we collect a name, age, race and gender. For victims, we also record a date of death, homicide method (shooting, stabbing, etc), place of death (hospital or at the scene) and incident location. For suspects, we record arrest dates and case status.

If you work for a news organization, think about how long it would take to gather all of this information.

We’ll export the data at your request, so you can ask in September (when this campaign ends) or in January (if you want two calendar years) or any time later.

 

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The L3C from A to Z, June 6, 7 at NU’s Kellogg School, Levy Entrepreneurship Center

Americans for Community Development is hosting its first conference exploring the intricate financial and legal aspects of the L3C with true experts in the field. As Liaison for the Media Working Group for ACD, I’ll be hosting a conversation with others in the journalism field about the possibilities of an L3C newsroom. This is an everything you ever wanted to know about L3Cs, what they are and how they relate to 501(c)3s and the whole concept of social enterprise and sustainable social change.

The L3C (Low-profit Limited Liability Company) is a hot topic in the nonprofit sector that up until now has only received minimal attention at all the nonprofit conferences and meetings. It may change the way socially beneficial services are delivered. It may represent a whole new paradigm in private public partnerships. And it may finally bring substantial amounts of market rate investment dollars into the social sector.

Americans for Community Development and The Levy Entrepreneurship Center of the Kellogg School of Management at Northwestern University have partnered along with Supporting Sponsor Council On Foundations to present the first conference devoted exclusively to the L3C.

Do you work in the charitable sector, an economic development agency, a foundation, a government agency, social finance,
healthcare? Are you interested in how we can do more with less from government, while rebuilding our infrastructure? Is social enterprise your thing? If any answer is yes, you need to be in Evanston, Illinois June 6th and 7th, 2011.

For additional information or questions
Karen Woods: (231) 578-0905
Janice Lang: (914) 248-8443

To register, visit the ACD website.

Welcome to the birth of journalism!

Carnival of Journalism 2: Take a moment to reflect on your unique skills and circumstances. Then answer: What specific things can you do to increase the number of news sources for a local community.

What specific things can I do to increase the number of news sources for a local community? I can continue to work toward establishing the L3C as a business model for news.

Two things are important to know about the L3C as a business structure for news: 1) it encourages long-term ownership of a news organization that puts journalism first; 2) it is designed to accept an investment from a foundation as seed money.

The starting point for my thought is the current economic and cultural disruption, from which will emerge new ways of doing business. Among these innovations will be branded social enterprise, patient money, slow money and renewed interest in investing in all things local. There’s a lot of cash out there circulating looking for some kind – any kind — of return. The L3C returns 5% or less, and it is designed as a vehicle for investments by foundations, local businesses, institutions and others such as private equity funds.

The ideal owners of an L3C newsroom will be satisfied with this financial return and be enthusiastic about the intangible return, the social benefit delivered by a robust local news stream. Of course, since the foundation provides only seed money, the L3C newsroom in its business plan will have to persuasively describe the full complement of revenue sources for news that everyone is struggling with.

My career spans years in newsrooms, government and the independent sector, so the idea of the L3C newsroom struck me immediately as being worth a shot. But when I spoke to a group of journalism students at DePaul University recently, I was surprised by how easily they grasped the main concept of the L3C social enterprise. They didn’t get everything but they got the gist of it. It was a treat to think how unencumbered they are by the past. My attempt to explain the act of fitting copy on a page the old way could have been a comedy act – with me waving my hands in the air and them watching in puzzled silence. But in the end – who cares? Out with the old and in with the new!

I was also struck by how little the students knew about different types of businesses, including nonprofits. But instructors like DePaul’s Mike Reilley are wise, and they are integrating business concepts into the curriculum. Reilley has assigned the students the task of brainstorming a path forward for transforming their class assignment, “The Red Line Project” into a newsroom with a sustainable revenue stream.

The Knight Foundation points out that the main source of journalism has always been private enterprise and that marketplace incentives have fueled original and verified reporting.

Steve Yelvington, noted thinker on revenue models for news, said at a University of Minnesota School of Journalism event on Economic Models for News: “The truth is that journalism has never had a business model of its own. It’s always been a useful component of some other business model.”

My position is that for the first time, journalism has the potential to be thrown from its “newspaper” nest and born to a higher expression as a crucible for civic life.

Welcome to the birth of journalism as a social enterprise!

The L3C social enterprise is the bulkhead in a growing marketplace, one that values social benefit as well as investment return. There are signs of this emerging marketplace everywhere. Take a look at this recent article in the Harvard Business Review, Shared Value.

Inspired by the Peoria Newspaper Guild and its investigation into the viability of an L3C for the Peoria Journal Star, I brought the idea to my former paper, the Chicago Sun-Times. It didn’t exactly resonant with the Newspaper Guild or the Sun-Times corporate ownership. To answer our Carnival of Journalism question: To help increase the number of news sources I could always knock on the door of the Sun-Times again.

Just as the economy is seeking a foothold to stem foreclosures, create jobs, feed people and improve our lives and communities in systemic and sustainable ways, journalism is now preparing to crawl, then toddle and start to walk on its own. The two can be coupled.

I believe we could we bring together street level metrics and journalism in a mutually supportive system and change the way our society measures wealth while also changing the way we pay for journalism. It’s a nice blue sky thought.

It’s possible some of this blue sky could be added to The Red Line Project as an L3C. I could see adding some community development bells ands whistles – an added plus for foundations that are looking for systemic fixes. Maybe that’s where I should put my effort to increase the number of news sources.

Or I could concentrate on the system of news blogs we have developing here in Chicago and evolving it into an L3C; the Red Line Project could be an arm of it.

Or perhaps I could pitch in at Village Soup, a local news site that is making money and likes the L3C model.

Currently, I know of only one newsroom established as an L3C that has seed money from a foundation and that is the Pt. Reyes Light in the Bay Area. They have the structure in place and the money to get started, but when I spoke with them last fall they were hitting some road bumps in their set up.

It’s been slower going than I would like getting this idea launched and off the ground. Despite limited personal resources I have attended conferences of the Social Enterprise Alliance, BALLE and the PRI-Makers [a group of 100 foundations who make PRIs for systemic change.] I have also attended the FTC hearings on the Future of News, CitiCamp Chicago [Gov2.0] and dozens of events in Chicago about the future of news, as well as numerous technology- and journalism-based events. Thanks to the generosity of the Reynolds Journalism Institute, I was able to attend Journalism that Matters- Detroit, where my systemic community development ideas first started to percolate. I am scheduled to attend the Web2.0 conference in March in San Francisco, as a journalist, where I will be reporting on the latest ideas in developing online revenue.

It’s been slow going because new ideas take time to integrate into the mainstream and there is always push back from existing power centers. The foundations I spoke with at the PRI Makers conference are open to the idea of the L3C and other new economic models for news, but they tend to move slowly and with caution. It’s understandable. In conversations, I found more foundation officers who were open than skeptical. In conjunction with this Carnival of Journalism piece, I am posting a statement from the PRI-Makers on L3Cs and other business models as a kind of sidebar.

One common criticism of the L3C is that it is unnecessary, that there are many ways in which a regular LLC- limited liability company, can be structured to achieve the same purpose. Although it is true that many LLCs have been established in conjunction with 501(c)3s for social benefit, they lack the branding power of the L3C – which some foundation executives see as valuable. As the volunteer convener of the L3C for Media working group at trade association Americans for Community Development, I respond as quickly and thoroughly as I can to questions directed my way. We are all learning together.

To appease the legal industry that has historically profited from PRIs as well as those who have other concerns, Americans for Community Development has drafted Federal legislation to streamline the L3C/PRI process at the federal level. If so moved, the community of journalism thought leaders could join ACD in supporting this legislation. That might give a considerable boost to birthing the future of news as a social enterprise and increasing the number of news sources for a local community.

There is much work to be done. I am confident that with the assistance of many partners, we can establish social enterprise newsrooms that will deliver every possible flavor of credible news for local communities.

As dots connect, whole emerges for future of news

First published Huffington Post, June 12, 2010

The online dots are quickly connecting. Gov2.0 entrepreneurs are building a strong backbone for a hyperlocal new stream. And much of the innovation is seated here in Chicago.

Everyblock and SeeClickFix have formed a partnership.

Many Chicago alderman are signed up for SeeClickFix. We are forming new communication channels on the Web for talking to our governments, creating a crowd-sourced complaint system and measuring the quality of government’s response to our complaints and requests for service. [I’ve embedded it here on my website – so give it a spin.] More to come on the feedback systems that could drive all this.

I haven’t talked with OutsideIn for a while but I see that the creators of the conceptual framework of the Emerging Ecosystem of News Delivery have a robust stream of information coming in from news blogs.

There’s no formula for bringing all this together and making it all work like a well-oiled machine. But – as was evident from a panel on models for news and the optimistic viewpoint of Steve Rhodes about revenue models at Chicago’s Community Media Workshop last week, we have many reasons to look brightly to the future.

We also have the “Big” thinkers now stepping forward and touting tools for getting the information you want, many of which James Fallows outlined in this June piece in the Atlantic Monthly. Give GoogleNews a spin – you’ll like it. Even the New York Times Magazine is taking notice of the plight of New Journalism Entrepreneurs in this May 10 piece by Andrew Rice “Putting a Price on Words.” It’s something I first noted in a ChuffPo post last year.

At this rarified high level of information exchange online, there’s much going on front stage and behind the scenes. There are more moving parts than can be counted.

I was reminded last week that all this blue sky can quickly go gray from the clouds cast by the lack of online access for underserved communities. Committed community news activists and journalists (no longer news-room bound) gathered in Detroit for “Create or Die” an open space on Journalism that Matters.

That’s a conversation that is continuing at a higher pitch and urgency June 24 at “From Blueprint to Building: Making the Market for Digital Information,” which Bill Densmore calls an action congress for trust, identity and Internet information commerce serving newspapers and beyond. Trust is our currency on the Web, and we’ve made much progress defining that since Pierre Omidyar made his first discoveries on eBay. Now even Omidyar has gotten the news bug and has launched Honolulu’s Civil Beat. Densmore hopes his “Blueprint” will dot the “i’s and cross the “t”s on the next phase of online trust. We’re hopeful and we will see.

As the Chicago News Cooperative continues to explore the idea of the low-profit limited liability, or L3C, business structure, the Pt. Reyes Light in Marin County says it is taking the plunge and will become a mission-driven newsroom.

As Steve Yelvington explained so well in this presentation last year at the University of Minnesota Economic Models for News, journalism has never had a business model of its own. My thinking is that it is about time it does, as I explained at Community Media Workshop panel last month. That’s why I am continuing to follow and braid the threads leading to a social enterprise news stream.

It can’t be long now before this all comes together, and when it does it will be in several robust forms that will provide access to volumes of information we’ve not had access to before. And it will be up to a diversity of journalists to do the job of helping to create, vet, sort and distribute these streams.

Hold on for a wild ride.

Follow Sally Duros on Twitter: www.twitter.com/saduros

As dots connect, whole is emerging for future of news

Chicago Journalism Townhall
Chicago Journalism Townhall (Photo credit: sally garden)

As dots connect, whole is emerging for future of news

The online dots are quickly connecting. Gov2.0 entrepreneurs are building a strong backbone for a hyperlocal new stream. And much of it is happening here in Chicago.

Continue reading As dots connect, whole is emerging for future of news

The Emerging Ecosystem of News Delivery

Steven Berlin Johnson over at OutsideIn, which I wrote about in June 2007 for the Chicago Sun-Times, brought wonderful clarity to the situation of legacy news operations yesterday at a presentation at South By Southwest. He envisions an evolving news ecosystem and with clarity places newspapers as a foundational gathering operation. He also cautioned that it is important to move forward to a vision rather than cling to the old.

But in times like these, when all that is solid is melting into air, as Marx said of another equally turbulent era, it’s important that we try to imagine how we’d like the future to turn out and set our sights on that, and not just struggle to keep the past alive for a few more years.

Steve says so well what I have been stumbling around trying to articulate here in Chicago. In evidence of the beauty of the Web, I was able to read his comments and see a video of him presenting the day after he did it – glorious access to information!

At a Poynter Institute event here in Chicago yesterday, the reality Steve describes was coming sharply into focus in the discussion. It is so sad that newspapers and some other legacy media do not see the preciousness of their brands and how important it is to preserve THAT so that they can have a place in the new ecosystem. Could be that they think their brand is a logo and marks, not something organic that emerges from the way that they operate.

Newspapers don’t need to go more deeply into the “swamp” of disinformation or useless eye candy to have a role in the new forest. They need to do a LOT more of what they do well — good local reporting — and spread cooperatively through their value systems to work with partners. Unfortunately, some newspapers like the Sun-Times where I used to work have been sucked dry of their newsroom resources by their business operating model. The Sun-Times is operated by a hedge fund, and all it wants is a dollar return. Hedge funds don’t value one bit the social return that is evident in a well-done newspaper newsroom.

It’s one reason why I am on the soap box for theL3C hybrid for news businesses. It’s great to hear Steve’s vision and here in Chicago, many of us are working to develop a healthy new ecosystem. Below is Steve’s flow chart for news delivery. You can watch a video of the presentation here.

Steven Berlin Johnson’s News Flow

Newsrooms must die! Long live newsrooms!

Does a social enterprise hold promise for the future of newsrooms in Chicago?

“Yes,” said Terry Mazany, President and Chief Executive Officer of The Chicago Community Trust.

It was hard to hear Mazany over the din of 400 chattering reporters, editors, bloggers, photogs, commentators and independents from all sectors of Chicago’s newsgathering world present at the Chicago Journalism Townhall (CJTH) Sunday, Feb. 22, organized by perpetual do-gooder Ken Davis and his wife Linda.

I am certain Mazany said “Yes” to the L3C idea because I caught him on tape, actually I recorded him in digital. But let’s not get lost in the analog vs. digital, paper vs. web, long-time pro vs. citizen journo, columnist vs. blogger, corner news box vs. click-through discussions that so-much dominated the conversation at the Townhall Sunday. Let’s just say Sunday’s gathering proved there’s reams of tactical knowledge to be exchanged, enough to forge a new cluster or two of media-savvy newsroom start-ups and connect the dots between the points until the Chicago region is a glorious virtuous circle of high-quality news and revenue streams. You can catch up on the sticky details articulated by writers and journalists far more informed and clever than I over at the CJTH blog.

Me? I am excited about the Chicago newsroom of the future, a journalist’s dream come true that could rise from a floor of foundation cash and be sustained by a stream of revenue and profit. My theoretical newsroom, let’s call it The Times Democrat, would be a new kind of company, an L3C, or Low Profit Limited Liability Company.

Mazany added currency to this idea when he said that Information has risen to the level of being a most pressing need for a community in our current democracy. More than ever, a newsroom must be a mission-based place.

Mazany’s comments are useful for anyone thinking big about the newsroom of the future. He said that not only is our democracy at stake, but so is the Chicago region’s competitive advantage in a shifting world. To better understand this viewpoint read Richard Florida on the rise of the Creative Class.

This conversation lifts the perspective up 10,000 feet and takes a shrewd look down. Let’s agree that journalism must live for the future of our democracy. Let’s also agree that the newsroom of The Times Democrat will be an amalgam of the best and most innovative practices we have online and in print, and that it will evolve to be something recognizable as newsgathering measured by a few key virtues. These include a culture of accountability and quality control that includes editors and fact checkers. And in fact, credibility and audience relevance will be the currency that moves the market of readers, or “news consumers,” from news org to news org locally and nationally. In this scenario, it’s likely everyone at the CJTH will get to play at The Times Democrat. Much revered will be those who have learned how to make money from the ads and play of the Web.

But to get there, journalism needs one thing more than anything else to operate well: that thing is money, specifically re-birthing cash. That’s what our L3C newsroom, The Times Democrat, is about.

So, what would the business model of The Times Democrat look like? It would simply be a modified Limited Liability Company that has the primary goal of serving a socially beneficial purpose and as such it could accept foundation money.

Americans for Community Development, a coalition sponsored by our nation’s first L3C – L3C Advisors — says that the L3C is the for-profit with a nonprofit soul. The nonprofit soul of a newspaper arises from the recognition that newspapers are the only business specifically recognized in the U.S. Constitution and that the information they provide is vital to the proper function of a democracy.

The Times Democrat L3C can operate as a business with a social purpose because its structure releases arcane IRS rules related to how foundations like The Chicago Community Trust, the John D. And Catherine T. MacArthur Foundation and the McCormick Foundation — all present at the CJTH Sunday — invest their considerable sums of money.

Red tape be gone! When The Times Democrat presents its business plan [drawn together by the savviest business people, investors, journos and web innovators far and near to Chicago], foundations will find it that much easier to invest because of the L3C.

A foundation like the Chicago Community Trust, having taken first position in the tranched investment, has also taken on most of the risk, making The Times Democrat a safer investment for others. Other investors like pension funds and private equity funds would more quickly follow suite. But you wouldn’t see venture capital firms. The returns aren’t fast enough or large enough, said Steve Miller of Chicago’s Origin Ventures.

The Americans for Economic Development website says this: Because the foundations take the highest risk at little or no return, it essentially turns the venture capital model on its head and gives many social enterprises a low enough cost of capital that they are able to be self sustainable. “Self sustainable,” two of the most beautiful words in existence today. Not filthy rich, but instead, enough.

And if filthy rich simply happens because The Times Democrat is great at meeting its mission, that’s OK, too. It can reinvest some profits to make the newspaper better.

That means the newspaper L3c won’t have to ask its reporters to work for free or its editors to limit their earnings to $30,000 per year. Unfortunately, we heard a lot of this kind of hope-crushing talk at the CJTH Sunday.

Obviously small newsrooms and no pay don’t sit well with Bernard Lunzer, president of The Newspaper Guild, which represents Chicago Sun-Times employees.

“The problem,” Lunzer said, “is academia and a lot of people are saying we will have these new operations of 10-15 people and that will replace what we formerly had as major newsgathering organizations.”

“We will keep pushing the conversation,” Lunzer said.

Lunzer has been visiting the Hill to forward Federal legislation related to the social purpose of newspapers and L3Cs.

Draft legislation called the Program Related Investment Promotion Act of 2008 is being considered by staff in the Senate Finance committee, and is currently looking for sponsors.
Here in Illinois, Bill SB 239 creating the L3C hybrid was introduced to the Illinois legislature Feb. 4 by Sen. Heather Steans (D-Chicago). I’ve not yet had an update on that.

“Our goal is to get our communities through to the other side,” Lunzer said. “We believe the L3C is an important vehicle.”

“The beauty of the L3C is its simplicity;” Lunzer said. “You accept that you will not have high profit but you will have some profit. And at some point [once a newsroom is recovering, it] could move back to a normal LLC.

“For democracy to work, we need transparency in government. We need credible info and that has always started on the news side with print,” Lunzer said.

Can a newsroom like the Sun-Times be reborn?

“For the Sun-Times, what’s got to happen is you have to find a way to separate the product that is the Sun-Times from the debt that was incurred by business owners,” Lunzer said.

That echoes something Mazany said at the CJTH. To be fair, organizer and moderator Ken Davis said it first, rather gruesomely.

“Is there a point at which someone could wait until the Sun-Times (or the Tribune) either dies or can no longer survive, [and then] plucks out the beating heart of the newsroom and makes that a separate company, a new newsroom?” Davis asked.

After some thought The Chicago Communty Trust’s Mazany answered in the affirmative. He rephrased it to me this way later.

“Is there a way of bringing in some intervention for the shuttering of a newspaper and creating some dollars that could go into an endowed fund or to support the transition to new forms of journalism and community information?” Mazany asked. “Yes.”

Could that happen despite the fact that the assets are not desks and chairs and buildings and paperclips, but instead intangible assets like institutional knowledge and people?

“Yes,” Mazany said.

So how can those of us who care help make that rebirth happen?

The Newspaper Guild’s Lunzer has some ideas.

“We need people to try and find real investment in the Sun-Times,” Lunzer said.

“It will take community will and political will but that is what must happen,” he said.

“And we might have to open ourselves up to the idea that government could flow money into newspapers. It may well be that we see a situation where we see some government aid to get through the worse of this.”

Lunzer said that all over the country, newsrooms are emerging in different forms.
Certainly the L3C would allow foundation money to flow in, he said. But it’s just one of many ways including co-ops and ESOPs that The Guild is working with.

Read More: Bernard Lunzer, Bloggers, Chicago Journalism Townhall, Chicago Sun-Times, Chicago Tribune, Chicago-Illinois, Death Of Newspapers, Democracy, Future Of Journalism, Heather Steans, Journalism, Ken Davis, l3c, Low Profit Limited Liability Company, Main Stream Media, Newspaper Industry, Newspapers, Social Enterprise, Terry Mazany, The Chicago Community Trust, The-Newspaper-Guild, Chicago News