This article first appeared in the St. Louis Beacon, April 8, 2011 - The Editor's Weekly is a weekly (clearly) email regularly written by Beacon editor Margaret Wolf Freivogel. It goes out on Fridays to all donors of $1 or more for whom we have email addresses, and it ranges in topic from a "view from the newsroom" perspective, to Margie's own take on a current event, to a recap or update on happenings on the business side of things at the Beacon.
From time to time, like this week, when Margie is traveling, someone will guest write the Editor's Weekly. Because the subject matter is so central to who we are at the Beacon, we've decided to make this week's Editor's Weekly public. Text follows below.
Dear Beaconites -
On Wednesday evening at the annual James C. Millstone memorial lecture at Saint Louis University, the Beacon was pleased and excited to announce gifts from Emily Rauh Pulitzer, Richard Weil and others totaling $2.6 million. The funds, along with pledges announced earlier in the year, are targeted toward business and technology infrastructure for the Beacon.
For the past two years, the management team at the Beacon has been focusing intensely on the issue of sustainability. We love what we do, and we're perfecting how we do it -- but all that becomes moot if we cannot sustain it. We are not alone in this quest. All over the country, different organizations similar to ours grapple with the same question. And I strongly believe that the answer will be different for each of us.
For us, the answer comes from who we are, how we've grown, the contributions and the partnerships we've brought to the region and the realities of what we see happening around us. But just as importantly as what the answer is, is what the answer isn't. Having a clear sense of what won't work and who we aren't remains one of our most powerful tools.
Below is an outline of where we are today -- what we commonly refer to as our stake in the ground. Initially we developed these questions and answers for internal use, but immediately realized that if we're true to our mission, "internal" means our supporters, our readers and anyone invested in the future of the Beacon.
Thank you, as always, for the part you have played and will play in the growth of the Beacon.
Nicole Hollway
General Manager, St. Louis Beacon
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St. Louis Beacon sustainability plan frequently asked questions
Where is this money going?
The Beacon is in year two of a five-year plan to increase earned revenue and reduce dependency on philanthropy. This money will be treated as a capital investment and go toward the technology, staff and resources needed to increase earned revenue.
What is the Beacon's budget?
In 2010 is was $1.3 million. 2011 is budgeted at $1.9 million.
What was the Beacon's total revenue for 2010?
$693,000 ordinary revenue; $1.5 million special project revenue.
What is the Beacon's revenue mix?
For 2010:
Project Donations - $1,500,000
(percentages below do not include project income)
Donations - 450,000 (65%)
Foundations - 101,000 (15%)
Events - 138,000 (19%)
Sponsorship/Adv/Other - 4,000 (1%)
What is your ultimate revenue mix? How do you plan to reach sustainability?
As with any plan, you have to adjust for reality, but we're currently targeting the following by 2014:
Donations - 30%
Foundations - 14%
Events - 6%
Sponsorships/Advertising - 33%
Other income - 17%
What is "other income"?
We anticipate business opportunities that might be parallel to but separate from our core business. This might include information products, specialized content, tangible items, partnerships, etc. Part of the purpose of the project money is to give breathing room to discover what avenues make the most sense.
How much more do you need to raise?
It depends on how you look at it. Ongoing fund raising (currently targeted as 30% of the operating budget by 2014) will continue to be a part of our revenue mix. So we'll continue to seek community support and involvement as part of this venture. As for the money targeted to build the infrastructure to enable our earned revenue to grow as projected, we've made significant progress. The latest gifts bring our goal clearly in sight.
Specifically: We have secured about $4 million in project specific money and seek an additional $1 million (pledged over the next 3.5 years). Ongoing fund raising is targeted at $325,000 for 2011 increasing by about 40% in 2012 and 50% in 2013 as we wean off of the capital created by the project money, then leveling off to a modest increase (20%) year over year.
How many stories do you publish per day?
An average of nine stories a day, including weekends (weekday-only average is 11).
What does your traffic look like?
March 2011 saw 63,000 unique visits.