Volunteer-run Guildford Dragon News made history as the UK's first charitable local publisher, but the benefits haven't materialised. A new handbook aims to help other newsrooms learn from their experience
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The Charitable Journalism Project (CJP) has today launched a free handbook to support local newsrooms across the UK in applying for charitable status, following the breakthrough case of The Guildford Dragon News, which became the first local news organisation to achieve charity registration last year.
The guide provides a step-by-step process specifically tailored for newsrooms, drawing on specialist legal expertise from charity law firm Stone King LLP (which supported The Guildford Dragon News's successful application).
It addresses the lengthy and expensive process that has previously prevented many newsrooms from pursuing charitable status. Even with subsidised legal support, the application process can take years and be challenging for resource-strapped local news organisations.
The Guildford Dragon News, a fully volunteer-run news outlet, has found itself unable to take full advantage of its new charitable status.
Charities receive certain tax relief in the UK, but The Dragon would not have paid much tax anyway prior to charitable status. Both charities and businesses turning over above £90k must pay VAT, while businesses with profits at £50k or less pay corporation tax at the lower rate (19 per cent). The Dragon has a turnover of £7k.
Charitable status was also seen as a way to unlock philanthropic funding, but the small team prioritised a 12-month application to the National Lottery Community Fund, only to see recently tightened criteria rule them out earlier this year.
The new criteria prioritises support for places, people or communities "experiencing poverty, disadvantage or discrimination" and "the decisions that affect their lives". Both criteria need to be met and the team did not feel confident in their eligibility.
Editor Martin Giles said the fund should consider a category for local journalism, and he is now eyeing up other revenue sources like subscriptions, donations or crowdfunding. As a charity, it would stand to gain an additional 25 per cent of revenue in gift aid on reader donations.
"The only way we keep going is the goodwill of my team," Giles told Journalism.co.uk.
The Dragon may have yet to see the benefit of being a charity, but Giles did not want to discourage others from trying: "Other people might have better ideas than us about how charitable status can be used."
CJP project manager Eliz Mizon pointed out that there are many other grant fundraising opportunities - both locally and nationally - which could benefit news operations.
"While grant fundraising is never easy - especially for many small news teams who might be entirely voluntary, or even an individual - charitable status will make it easier in so many cases," says Mizon, formerly the strategy lead for The Bristol Cable and no stranger to fundraising for independent news operations.
"There are a number of UK funders that restrict applications to registered charities only, so having charitable status would 'unlock' access to these, to new restricted funds as and when they appear, or if a funder's strategy pivots and your work becomes more aligned with their aims, for example."
Until 2024, charitable status had only been achieved by journalism-adjacent organisations such as the Public Interest News Foundation and Full Fact.
The new CJP guidance states that the eligibility of news publishers for charitable status depends on the newsroom's focus on 'public interest journalism'.
Two organisations - The Bylines Network and Positive Futures Magazine - have already confirmed they will use the handbook to submit applications to the Charity Commission this year.
