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Granite State Report’s Democratic Business Model — and how it can actually save local journalism

By Granite State Report

Short version: Local news doesn’t have a revenue problem so much as an incentive problem. Granite State Report is fixing the incentives by making the newsroom democratically owned, transparently governed, and revenue-diverse. That combination builds trust, resilience, and impact—without chasing clicks or courting hedge funds.


The problem we’re solving (no euphemisms)

  • Ad markets are captured by platforms; programmatic pennies won’t fund watchdog reporting.
  • Newsroom consolidation has stripped communities of accountability and context.
  • “Membership” without real power is just a subscription with a tote bag.
  • Trust is broken because readers are treated like leads, not owners.

If we want different outcomes, we need a different ownership structure—and a budget designed for service, not volatility.


The GSR model in one page

Structure: Granite State Report operates as a mission-locked, multi-stakeholder cooperative with a public-benefit charter. One-member-one-vote for people, not dollars. Three member classes share governance:

  1. Community Owners (readers) – majority of seats, because the public interest is the point.
  2. Worker Owners (journalists and staff) – guaranteed seats and profit-sharing tied to newsroom health, not pageviews.
  3. Civic/Business Partners – capped influence; they help sustain the ecosystem without steering coverage.

Mission lock: Our bylaws hard-code editorial independence, a firewall between revenue and reporting, and reinvestment requirements before any surplus distributions.

Open books: We publish an easy-to-read monthly dashboard: cash in/out by category, reserve levels, donor and advertiser rolls, and a public contracts list. Sunlight beats vibes.


How money works (and why it’s sturdier)

Target mix to avoid single-point failure:

  • 40% Member Revenue – tiered memberships with sliding scale, patronage dividends when there’s a surplus, and real voting rights.
  • 20% Ethical Underwriting/Local Ads – sold through a regional co-op with frequency caps and clear labels. No surveillance, no click quotas.
  • 15% Services & Studio – explainers, data visualizations, and civic-tech tools for community groups and small businesses via a separate subsidiary with an ironclad editorial firewall.
  • 10% Events & Training – town-hall series, “how local government works” workshops, and FOIA bootcamps.
  • 10% Philanthropy – for startup capital and high-cost beats (investigations, data desk). Donors get gratitude, not steering.
  • 5% Marketplace – community classifieds, job board, obits, and a transparent rate card.

We build and maintain a 6-month operating reserve and a Restricted Investigations Fund so big stories don’t depend on a monthly CPM.


How power flows (so trust can return)

  • Annual Public Assembly sets coverage priorities and elects board seats across all classes.
  • Beat Councils (e.g., housing, education, environment) advise reporters, pressure-test assumptions, and surface under-covered angles.
  • Citizens’ Jury convened for sensitive calls (e.g., naming minors, graphic material).
  • Independent Ombuds with authority to publish unedited findings.
  • Transparency by default: open meeting notes, open-source methodology, and a public corrections ledger tied to each story.

This is governance you can feel, not just a mission statement on stationery.


What we publish (service first, spectacle never)

  • The Accountability Desk: investigations with receipts—contracts, data, documents—plus a replicable “how we reported this” appendix.
  • Explainers & Guides: “What is this board and why does it raise your taxes?” in plain English, with timelines and checklists.
  • The Meeting Project: every consequential public meeting summarized within 24 hours—agenda, votes, who showed, what’s next.
  • Elections, without theater: side-by-side positions, money flows, and a “claims & sources” tracker.
  • Text-line tips + FOIA tracker: you can follow your records request like a package.

Impact isn’t a vibe; it’s a ledger entry: dollars saved, policies changed, and problems fixed. We’ll publish those metrics quarterly.


Guardrails that matter

  • No undisclosed sponsored content. Ever.
  • No political endorsements. We cover power; we don’t anoint it.
  • No data brokerage. We don’t sell your attention or your inbox.
  • Clear conflict-of-interest disclosures for staff and board.
  • Editorial decisions are unidirectional: business does not cross the firewall.

Why this can scale beyond one newsroom

Democratic ownership + transparent budgets change incentives. When readers are owners:

  • Trust rises because people can inspect the sausage—and help make it.
  • Costs drop as community expertise plugs holes money can’t fill.
  • Revenue stabilizes because diversified lines cushion shocks.
  • Talent sticks because staff share in governance and surplus.
  • Replication is real because the playbook is open: bylaws, dashboards, and toolkits anyone can fork.

We want this model copied. Please, steal the ideas and improve them. The state wins when every town has a durable watchdog.


What we’re doing now (tangible, not theoretical)

  1. Publishing our bylaws, budget template, and rate card for public comment each year.
  2. Launching Beat Councils for housing and schools first—where policy meets people’s wallets.
  3. Standing up the Meeting Project with a volunteer-to-freelancer pipeline and micro-grants for coverage expansion.
  4. Opening the Investigations Fund with named donors and quarterly reports on spend and outcomes.
  5. Piloting the ad co-op so local businesses buy reach without buying influence.

How you can participate

  • Become a member-owner. You get a vote, not just a newsletter.
  • Underwrite a beat or series—with labeling so crystal-clear it’s boring.
  • Join a Beat Council and lend subject-matter expertise.
  • Pitch a public meeting your neighbors should know about.
  • Partner on training if you’re a school, library, or community org.

If you’re a newsroom leader elsewhere, we’ll share the docs, the math, and the missteps. If you’re a funder, invest in capacity, not vanity metrics. And if you’re a reader, hold us to our own rules—loudly.


The bet we’re making

When ownership is democratic, incentives re-align around service. When money is diversified, journalism stops living month-to-month. When processes are transparent, trust compounds. That’s how Granite State Report plans to make local news boring in the best way: predictable, durable, relentlessly useful—and absolutely fearless.

Let’s build the kind of press a self-governing community deserves.

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