A new study conducted by NORC at the University of Chicago in partnership with Media Impact Funders and The Lenfest Institute for Journalism that examines the role of philanthropy in American journalism found strong growth in support for nonprofit news over the past five years, an increase in funding to for-profit newsrooms, and a growing focus on communities of color. At the same time, the study reveals the need for more newsrooms to disclose donors and adopt clear conflict-of-interest policies to protect editorial independence and public trust.

A total of 129 funders and 431 news organizations responded to the survey. The study received additional funding from the MacArthur Foundation and Arnold Ventures, and builds on the last comprehensive survey of funders and newsrooms in 2015 by the American Press Institute (API).

More than half of funders said their journalism grantmaking had increased in the last five years, with roughly a third reporting funding journalism for the first time. The trend is set to continue, with more than half saying they anticipated bigger investments in the future. These philanthropic investments follow more than two decades of decline in commercial revenue for the U.S. daily newspaper industry, which peaked at $89 billion in 2000.

The new study offers mixed signals about the perceived editorial independence of news from funding sources. Newspaper publishers historically maintained firewalls between advertisers and newsrooms to protect editorial independence, and having multiple advertisers meant no one could have undue influence. But most nonprofit newsrooms are small, some are focused on a single topic, and some funders are also advocates in the issue areas covered.

The survey shows progress on funding disclosure and conflict of interest policies since the 2015 report. Seven in 10 nonprofit news operations now have written policies about disclosing funders, up from four in 10 eight years ago. Nearly half have written guidelines about what money they will accept, up from just over a third.

But the risk of conflict of interest has grown alongside funding. More funders are financing journalism in areas where they also do policy work (57% vs. 52% eight years ago), and four in 10 outlets take money to do specific reporting suggested by a funder, though that percentage has dropped significantly from 59% eight years ago.

Read the full article about funding for journalism at The Lenfest Institute.