IRS Nonprofit Designation and Early Challenges

Lauren Gustus — executive editor of The Salt Lake Tribune — joins the Chuck Toddcast ahead of Local News Day on April 9th to discuss how a legacy daily newspaper completely reimagined itself as a nonprofit and is now taking its paywall down entirely in May, betting that free access and a members-based support model is the path to long-term sustainability. Gustus walks through the Tribune's fascinating history: the newspaper once had a 50-person desk dedicated just to youth sports, was heavily supported by the Huntsman family, had a joint operating agreement with the Deseret News, and — like so many local papers — eventually became a target for private equity firms. She explains how the Tribune transitioned to its nonprofit structure, acquired the Moab Times and retained those subscribers, created unique member benefits that require a paid subscription, and is now experimenting with how to serve Utah as both a statewide and hyper-local paper. She emphasizes that local news consumers are incredibly engaged and curious, that reporters need to understand their audience before doing the work, and that there has to be a genuine public service aspect to local journalism or the whole model falls apart.

The conversation turns to the specific challenges of covering Utah — a state where the intersection of faith, business, and politics is uniquely intense. Gustus explains that the Tribune's reporters covering the LDS church are themselves LDS members, which she argues allows them to report honestly and with context rather than creating conflict of interest concerns. She notes that Utah politics is often described as divisive but more polite than elsewhere, and suggests that the state's tradition of mission service creates a more worldly electorate than outsiders assume. On the editorial page, Gustus says the Tribune still sends questionnaires to political candidates because voters need information, not instruction on how to vote, and reveals that the paper receives dozens of Trump op-ed submissions but declines to run them. She discusses the messy ongoing redistricting war in Utah, the potential opportunity created by the Nexstar/Tegna merger consolidating local TV news, and makes the case that the Tribune's model — nonprofit structure, reader engagement, statewide ambition, and free access — is fundamentally repeatable in other markets across the country, which is exactly the kind of story Local News Day is designed to amplify.

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Timeline:

(Timestamps may vary based on advertisements)

00:00 Lauren Gustus joins the Chuck ToddCast

02:30 SL Tribune is a legacy publication that’s been reimagined

03:30 The Tribune used to have a 50 person desk for youth sports

05:00 Huntsman family was a massive booster of the Tribune

05:45 Transitioning the Tribune to a nonprofit model

07:30 In May, the Tribune will be taking down their paywall

09:30 Private Equity bought newspapers in order to obtain their real estate

10:45 Tribune had a joint operating agreement with Deseret News

12:30 Local news has to constantly pivot between revenue sources

14:30 How many hybrid funding models were considered?

15:45 Acquired the Moab Times & subscribers kept paying

16:30 Creating unique member benefits that require a paid subscription

18:00 Local news consumers are incredibly engaged and curious

19:15 Reporters need to understand the audience before doing the work

21:15 There has to be a public service aspect to local journalism

24:30 Has local advertising gotten harder, easier or just different?

27:30 Are there different models for relationships with reporters?

28:30 Independent contractor/freelancer model hasn’t caught on in SLC

30:30 Stories should be tailored to the platform if resources allow

32:45 Instagram isn’t monetizable, but good for reaching a subscriber base

34:30 What model have you chosen for your editorial page?

36:00 Tribune still sends questionnaires to political candidates

36:45 Voters need info, don’t need to be told how to vote

38:30 Trib receives dozens of Trump Op-Eds, doesn’t run them

39:00 How do you cover the LDS church? 

40:30 Tribune team covering the church are LDS members, but still report honestly

42:00 Intersectionality of faith, business and politics is huge in Salt Lake City

43:30 Utah politics is seen as divisive but more polite… is that true?

44:00 Mission service creates a more worldly electorate in Utah

46:00 The redistricting war in Utah has been incredibly messy

47:45 Nexstar/Tegna merger will consolidate TV news, is that an opportunity for you?

49:00 Tribune strives to be a statewide & local paper for all of Utah

51:30 Tribune model is repeatable

52:00 Plans for Local News Day on April 9th?

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