January 25, 2011
MinnPost reports first surplus, diverse revenue sources are key
On Monday, MinnPost reported that in 2010 this regional digital news org did better than break even—it actually ran a surplus. That’s right: a digital news startup with a geographic focus has turned a profit…
Admittedly, the MinnPost 2010 surplus of $17,594 (on spending of over $1.2 million) may sound pretty small in comparison to the budgets and profits of established daily news organizations. But that’s not the point.
MinnPost founders Joel and Laurie Kramer wrote: “This is tremendous vindication for our business model, because it resulted from 18 percent revenue growth, not budget-cutting.”
Which is more than most established news organizations can say.
MinnPost’s 2010 annual report notes its diverse revenue sources:
“We ran deficits of $605,000 in 2008, our first full year of operation, and $126,915 in 2009. (We were spending down the start-up funds we raised in 2007.) So it has taken us just three years to reach break-even.Most notably, our advertising and sponsorship revenue rose 42%, from $217,734 in 2009 to $309,508 in 2010. That’s on top of a 35% increase the previous year. Revenue from individual and corporate donors and from MinnRoast increased a more modest 5%, to $482,190. But in a sign of strong community support, 631 new donors joined the MinnPost family, an increase of 37%, bringing the total donor base to 2,338. And 170 donors gave more in 2010 than they had in 2009.
We launched a new Corporate Leadership Circle in 2010 with donations from the Medtronic Foundation and the General Mills Foundation, to support coverage of issues critical to the future of Minnesota.”
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Tags: business models, nonprofit, start up
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