Free Press - Annual Report 2008

20 08

FREE PR E S S 2008 annual report

F ree Press a n d t h e F ree Press Ac tion F und

Who Are We and What Do We Do? Free Press is a national, nonpartisan, nonprofit organization working to reform the media. Our goals are to promote diversity of media ownership, quality journalism, universal access to fast, affordable, neutral Internet service, and vibrant public and independent media. We are among the most effective non-profit organizations in the country and the largest organization solely focused on media policy. We use research, law, popular education, direct advocacy and the support of more than 500,000 members to create a media system that serves all people and truly supports our democracy. Our staff have diverse experience as artists, community developers, economists, lawyers, marketing experts, philanthropic advisors, and social entrepreneurs. The volunteers who serve on our boards of directors are academics, entertainment producers, media critics, labor organizers, philanthropists, thought leaders, and writers. Our two organizations employ different strategies to achieve tangible results: Free Press conducts research on how the current media system influences the development of important public policies and who ultimately benefits from those policies. We help people understand the impact of media on their daily lives. We convene citizens across the country to take part in discussions about the media and we facilitate submission of comments into government and regulatory proceedings to ensure that everyday people have a voice and direct impact on policies as they take shape. Free Press is featured regularly in high profile media outlets, and we issue a daily digest of media news and produce a weekly radio show. We disseminate a wide range of resources in print and online publications and at nationwide workshops, conferences and other special events. We are dedicated to making media reform a bonafide issue in America. Free Press is tax exempt under 501(c)(3) of the IRC. Contributions to it are deductible as charitable donations. Free Press is supported by private foundations, public charities and the generosity of many individual donors.

Free Press Action Fund advocates and lobbies for media policies in the public interest. Our policy team regularly meets with members of Congress and their staff to champion specific policy proposals and to counteract the steady stream of propaganda from industry lobbyists. We educate, inspire and mobilize our members to take action when the timing is right and when the opportunity to win is real. Outnumbered and outspent nearly 200-to1 we regularly demonstrate how lawmakers can and should listen to their constituents and how citizens can and do make an impact. Free Press Action Fund is tax exempt under 501(c)(4) of the IRC. Contributions to it are not deductible as charitable donations or business expenses. Free Press Action Fund is supported by membership donations and contributions from public charities and individuals. Support of our lobbying work is critical to the fight for media reform.

Support Us! We encourage you to get involved in our work. Visit our Web sites for frequent updates on important media issues. Sign up to receive periodic email alters (we don’t SPAM). And, equally important, give us your financial support at a level that is meaningful to you. We accept payment by cash, checks, credit cards or stock donations, and can set up automatic monthly payments or planned giving options. For more information, call 877-888-1533 x502 or visit www.freepress.net/donate

Dear Friend, When we first started Free Press, our goal was to give the American people a voice in shaping media policy. Five years later, the public has won a seat at the decision-making table, and we now have shifted into a new phase of operations. Whereas the initial focus of nearly all of our work was to keep bad legislation from being enacted, we began in 2008 to pursue a vision of what our media system should look like. Instead of merely fighting mergers, we’re now exploring new models for journalism that will bring the American people the quality news they deserve. We’re not only refuting government claims that the digital divide has been bridged, we’re advocating for broadband buildout that will connect every American to fast, open and affordable Internet. In addition to challenging illegal corporate interference with Internet traffic, we’re working to pass Net Neutrality legislation that will permanently preserve a free-flowing Internet. And rather than just fight cuts to public broadcasting, we’re identifying and advancing policies that will create a vibrant, sustainable public media sector, from NPR and PBS to Low Power FM radio, PEG channels and more. In short, we’ve successfully shifted from defense to offense this year, as a result of several factors: We’ve become better organizers. Our work has always been directed by the concerns of the public we serve. In 2008, we engaged a broader segment of the population, building alliances with more institutions, nonprofit leaders, civic organizations and businesses than in previous years. We also convened our fourth National Conference for Media Reform, drawing more than 3,500 people to Minneapolis to debate, discuss and deepen their knowledge of media reform. Our educational materials are more persuasive, accessible and forward-thinking. We’ve redesigned nearly all of our Web sites, making them easier to navigate and to find clear, accurate information, whether you’re a newcomer to the issues or a seasoned policy expert. We’ve also added audiovisual features that bring home the personal stories at the heart of our work. We’ve elevated our national profile inside and outside the Beltway. We have seen the president, members of Congress, dozens of organizations, civic leaders and hundreds of journalists refer to our data, incorporate our message, and advocate for our specific policy proposals. In just one year, Free Press has doubled its major press hits with dozens of mentions in major publications like the New York Times, Washington Post, and Wall Street Journal. Our staffers have been on the road tirelessly, getting the word out at conferences and gatherings about why media reform is central to the issues that affect people’s lives the most. None of this would have been possible without the support of those who fund us. We are immensely grateful for all you do.

Sincerely,

Josh Silver

Timothy Wu

Executive Director, Free Press/Free Press Action Fund

Chairman of the Board, Free Press/Free Press Action Fund

2008 Campaigns OPEN INTERNET

Seeking fast, affordable and universal broadband In little more than a decade, high-speed Internet, or broadband, has completely changed how we do business, engage with our government, teach our children, and interact with one another and the rest of the world. It has created immense entrepreneurial opportunities, allowing newcomers with good ideas and minimal capital to start businesses like craigslist, Google and ebay. It also has become a powerful tool for organizing social networks and sharing information, giving voice to disenfranchised groups, prying open governments, and engaging millions of people in political affairs. In short, having a connection to a fast, open and affordable Internet is no longer a luxury — it’s a necessity. So it’s hard to fathom that the United States, the birthplace of the Internet, now has one of the slowest, most expensive and least available broadband systems in the developed world.

What’s at Stake? A 2007 study by the Brookings Institution and MIT estimated that a one-digit increase in U.S. per capita broadband penetration equates to an additional 300,000 jobs. If our broadband penetration were as high as a country like Denmark’s, we could expect approximately 3.7 million additional U.S. jobs.

Today, more than 4 in 10 Americans, mostly living in poor and rural areas, do not have access to this vital resource, and the United States has fallen to 22nd place in the world in terms of broadband adoption. Bringing the country’s high-speed Internet services to a competitive level with our overseas counterparts would translate into millions of new jobs and hundreds of billions of dollars in increased economic activity for the United States. But a high-speed connection is valuable only if Internet users have the freedom to visit any Web site and use any services and applications they choose, without interference by network service providers. This principle of openness, known as Net Neutrality, was built into the basic architecture of the Internet and has made it a level playing field. Some service providers, however, want to implement technology that would filter, block or slow down content, services or the use of certain applications. If these practices are allowed, they could create an Internet where Web sites would have to pay up to ride in the fast lane. The loss of an open Internet would devastate the diversity of perspectives,

cultures and voices that we can now access through our computers. These discriminatory new traffic management practices could also steer users toward content, applications and services offered by the Internet provider and away from those offered by competitors. With so much at stake, Free Press focused much of our work this year on bringing an open and affordable broadband connection into every home and business in America. Here’s what we accomplished: ➔➔ Launched InternetforEveryone.org. Free Press forged a groundbreaking alliance of business leaders, legal scholars, public interest advocates and civic leaders to deliver the Internet to every American. In December 2008, we held the first of several town hallstyle forums in Los Angeles to give people a chance to shape our broadband future. ➔➔ Played a key role in historic FCC Censure of Comcast. When cable giant Comcast got caught secretly blocking Internet users’ access to legal online content and services, the FCC responded to Free Press’ formal complaint and comments by more than 35,000 activists by punishing the company — a FCC first and a major milestone in the battle to preserve Net Neutrality. ➔➔ Improved broadband data collection. In response to our “Broadband Reality Check” reports exposing flawed FCC data on the availability, speed and value of U.S. broadband connections, Congress passed the Broadband Data Improvement Act in September 2008. ➔➔ Lobbied successfully for FCC decision to release unused spectrum for wireless broadband. With a 4-1 vote, the FCC opened portions of the public airwaves (“white spaces”) to expand wireless broadband and connect millions of people to the Internet. The decision marked a major victory for Free Press and our allies who have fought the broadcast industry for years to open up the white spaces.

Comcast’s seat-warmers hard at work.

Comcast Seat-Warmers Comcast was caught last fall interfering with the popular file-sharing protocol BitTorrent, denying users the right to access the Internet applications of their choice. In response to a complaint from Free Press, the FCC launched an investigation and scheduled a hearing in Cambridge, Mass., to get public input. Free Press worked tirelessly with local groups to get the word out. Hundreds of concerned citizens showed up to speak out on the importance of an open Internet. Many people took the day off work. But when they reached the door, they were turned away. The reason? Ninety minutes before the hearing began, more than 100 seat-warmers hired by Comcast arrived en masse and occupied almost every available seat, in which many promptly fell asleep. Comcast initially denied the ruse, which was discovered by a Free Press staffer. Later, in a highly publicized acknowledgement, the media giant admitted to stacking the room in its favor. On Aug. 1, in a major victory for an open

Internet, the FCC voted to sanction Comcast ➔➔ Promoted the inclusion of $7.2 billion in stimulus funding for for illegal Internet blocking. broadband infrastructure. As soon as Free Press learned that President-elect Barack Obama was proposing a massive economic stimulus package, we began preparing a detailed proposal for reviving the economy by building a new, world-class broadband infrastructure. Down Payment on our Digital Future: Stimulus Policies for the 21st-Century Economy was released only six weeks after the election and made comprehensive recommendations on the amount and types of broadband funding that should be included in the stimulus package. The document helped shape the allocation of $7.2 billion for high-speed Internet. Particularly noteworthy was the inclusion of language in the bill requiring any subsidized networks to operate without outside interference — a Net Neutrality stipulation we pushed for from the start.

The U.S. Broadband Decline Change in Broadband Penetration Rankings 2001-2007.

Rank

2001

2007

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

South Korea Canada Sweden United States Belgium Denmark Netherlands Iceland Austria Germany Japan Switzerland Norway Finland Spain

Denmark Netherlands Iceland Norway Switzerland Finland South Korea Sweden Luxembourg Canada United Kingdom Belgium France Germany United States

Source: OECD Broadband Statistics as of December 2001; 2007

The United States Broadband Market—Price and Speed Broadband is far more expensive in the United States

Broadband is slow in the United States

Rank

Country

Avg. Monthly Subscription Price (USD, PPP)

Rank

Country

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Finland Germany Switzerland United Kingdom Sweden Japan Denmark France Netherlands Ireland Korea Italy Greece Belgium New Zealand Turkey Austria Luxembourg Canada Australia Portugal United States Norway Poland Hungary

$31.18 $32.22 $32.69 $33.34 $34.00 $34.21 $34.34 $36.70 $39.06 $40.41 $40.65 $41.09 $41.77 $46.08 $48.66 $50.04 $50.08 $50.84 $51.07 $52.26 $52.61 $53.06 $55.74 $56.57 $57.22

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Japan France Korea Sweden New Zealand Italy Finland Portugal Australia Norway Luxembourg United Kingdom Germany United States Canada Spain Greece Hungary Belgium Czech Republic Denmark Switzerland Netherlands Slovak Republic Austria

Source: OECD Broadband Statistics as of December 2007

Avg. Advertised Broadband Download Speeds (Mbps)

93.7 44.2 43.3 21.4 13.6 13.1 13.0 13.0 12.1 11.8 10.7 10.6 9.2 8.9 7.8 6.9 6.6 6.4 6.3 6.0 6.0 5.5 5.3 5.2 4.9

STOP BIG MEDIA

The campaign for local, diverse and competitive media Saying No to Bigger Media In the last weeks of 2007, the FCC voted along party lines to allow one company to own a television or radio station and the major daily newspaper in the same market. Free Press alerted our members, and more than 250,000 people voiced their outrage to the FCC and their elected officials. Not that long ago, we would have been heartened had a few members of Congress publicly voiced their displeasure with the FCC. But in May 2008, the Senate voted — almost unanimously — to rebuke the FCC by passing a formal Resolution of Disapproval. While the House version of the resolution ultimately stalled amid the elections and a certain presidential veto, the Senate vote sent a clear message to media conglomerates that further consolidation will not be tolerated by the American people.

A New Focus on Quality Journalism In April, the New York Times exposed a secret Pentagon program to spread favorable views of the Iraq war by recruiting and planting military analysts in the nation’s news media. Free Press swiftly launched a campaign demanding that Congress investigate the propaganda pundits. More than 100,000 activists and allies responded, and, in late May, the House passed an amendment to the annual defense bill banning the dissemination of Defense Department propaganda to the American people. In August, after several journalists — including Amy Goodman of Democracy Now! — were arrested at the Republican National Convention, Free Press led a petition-signing campaign that resulted in the delivery of more than 60,000 signatures to St. Paul Mayor Chris Coleman and prosecuting attorneys. All charges against the journalists were dropped. In September, Free Press and the Tyndall Report created a “Citizens Media Scorecard” so that viewers from around the country could rate the media’s performance during the four presidential and vicepresidential debates. Thousands of citizens from across the political spectrum weighed in at our “Rate the Debates” Web site. Given that President Obama’s FCC is likely to be far more skeptical of mega-media mergers Free Press is focusing our fight against media consolidation on tangible, citizen-driven policy solutions to the crisis in journalism.

Big Media Wall of Shame When the FCC voted to lift media ownership rules despite massive public opposition, more than 5,000 people posted their photos and comments on our StopBigMedia.com Web site. Right before the Senate vote on the FCC’s decision to lift media ownership protections, Free Press turned this online photo patchwork into a powerful poster, copies of which were delivered to offices on Capitol Hill. On May 15, 2008, the Senate passed the “Resolution of Disapproval” in a near-unanimous vote.

PUBLIC MEDIA

Seeking sustainable noncommercial and independent media Noncommercial, not-for-profit sources of media provide hardhitting coverage of public affairs, as well as the highest quality children’s programming and educational fare. Yet despite their value, U.S. public media are chronically underfunded, receiving less money per capita than public media in nearly all other industrialized countries. Public media like NPR and PBS are forced to seek private corporate financing and yearly appropria­tions from Congress — both of which come with substantial political pressures. Perennially short on resources, public and community broadcasters are not able to adequately serve audiences starved for quality news and other programming. Lack of funds has also limited public broadcasters’ ability to fully realize the potential of digital conversion and multimedia delivery over the Internet. Meanwhile, commercial media have gone to great lengths to stifle other forms of community and noncommercial media. Cable television providers have underfunded public, educational and governmental television channels and hidden them from viewers. Low Power FM radio licenses have been limited to all but the most rural markets at the behest of the commercial broadcasting lobby. Once it became clear — with Obama’s election — that the political climate for noncommercial media would likely improve, Free Press went to work preparing for the relaunch of our public media campaign. We began creating content and design for our new Web site, NewPublicMedia.org, which will be the portal for taking action and keeping informed about this renewed initiative. We are also continuing our collaboration with allies like Prometheus Radio Project to pass a bill that would open up the radio dial to thousands of new Low Power FM radio stations, ushering in a new era of vibrant local radio.  At the same time, we’ve started organizing a broad coalition of public media stakeholders that will be pushing for increased funding for the Corporation for Public Broadcasting, for better CPB governance, and for digitization of audio and video resources currently held by noncommercial networks and individual stations. We will also continue the fight to preserve funding for community media centers and to reverse a postal rate hike that threatens the viability of independent print publications.

How We Do It Our Strategies Free Press aims to reach people from every walk of life to demonstrate why media are a gateway to the issues they care about most. We don’t just wait for people to stumble upon the problem of the media — we reach out, both virtually and in communities across the nation. Here’s how we do it: ➔➔ We’re  on Capitol Hill, talking to policymakers nearly every day. Our lobbying work is one of our most direct and potent media reform tools and is conducted through our 501©4 advocacy arm, the Free Press Action Fund. ➔➔ We  keep our Web sites current with up-to-the-minute information. The Free Press Web site and our collaborative campaign sites offer breaking news on media reform developments. Users can access the latest research, find out about local media reform events, watch must-see videos — and, with a few clicks, they can contact their elected officials or file comments with the FCC. ➔➔ We publish easy-to-read print materials. Beginners can learn about the issues by surfing through our comprehensive online library or by downloading fact sheets. ➔➔ We  create compelling videos. In the past two years, our in-house production studio has created more than 100 videos distributed through popular sites such as YouTube, Facebook and MySpace. More than 3 million people watched these videos and forwarded them on to a friend. ➔➔ We  broadcast our own radio show. Media Minutes, produced in our in-house recording studio, is played weekly on radio stations across the country and can be downloaded as a podcast, too. ➔➔ We  get lots of press coverage on the issues. Our press releases reach more than 7,000 journalists and bloggers, earning us regular mention in both the mainstream and alternative press. We also appear on hundreds of television and radio programs annually and contribute op-eds to a range of national and international publications.

➔➔ We  build powerful coalitions. Free Press collaborates with hundreds of nonprofit and public interest organizations and businesses with whom we submit joint legal filings, co-author research studies and co-sponsor events. ➔➔ We produce groundbreaking research. Our top-notch reports provide the basis for our policy positions, counter the misinformation generated by the media industry, and bolster the efforts of other organizations that need quantifiable data to support their own reform efforts.

Research Highlights In 2008, our research team rolled out an unprecedented volume of high-quality reports on pressing media issues. Among this year’s highlights: ➔➔ Two months before President Obama signed his historic economic stimulus package into law, Free Press authored Down Payment on Our Digital Future: Stimulus Policies for the 21st-Century Economy, a comprehensive set of policy proposals for stimulating the U.S. economy by building a new, world-class broadband infrastructure. Free Press ultimately played an important role in getting broadband funding included in the stimulus bill. Our insistence that funding be restricted to open networks that protect Net Neutrality also made it into the final version of the bill. ➔➔ Free Press staff testified before the FCC during its investigation of cable giant Comcast for blocking consumers’ access to legal online content, and we testified before the Senate on the importance of preserving Net Neutrality. ➔➔ As part of the FCC’s public record, we filed 20 in-depth comments and reply comments on a range of issues, including reforming the Universal Service Fund, accurate broadband data collection, and illegal network management practices. ➔➔ With our ally Public Knowledge, we published NebuAd and Partner ISPs: Wiretapping, Forgery and Browser Hijacking, a study of how Internet service providers are partnering with online marketers to spy on customers’ online communications. In response, Congress launched an inquiry and within months, all companies had put the practice on hold.

Movement Building While Free Press is proud of its successful online initiatives, bringing activists and policymakers together face-to-face continues to be a vital part of our movement-building work:

FCC Hearings In February 2008, through our SavetheInternet.com Coalition, Free Press partnered with national and local organizations to bring hundreds of people to an FCC hearing held at Harvard University (see “Comcast Seat-Warmers” above.) Free Press also organized turnout at FCC hearings at Stanford University in April and at Carnegie Mellon University in July. All five commissioners were present at these hearings, which ultimately resulted in a formal sanction against Comcast as well as increased local media reform activism in the Boston, Pittsburgh and San Francisco Bay areas.

InternetForEveryone.org Broadband Forums In December, hundreds joined our InternetforEveryone.org initiative for the first in a series of unique, interactive town hall meetings to kickstart the movement for better Internet in the United States. The forum featured an inspiring lineup of local speakers, including Rep. Maxine Waters (D-Calif.), short documentarystyle films and small group conversations. In these “deliberative democracy” discussions, participants spoke out about their experiences online and offline and how they envision the future of the Internet. We also launched an online “virtual town hall” to allow people throughout the nation to participate in the discussion. Free Press has been organizing these forums to gather public input on a set of broadband policy ideas and recommendations to the Obama administration and Congress.

National Conference for Media Reform In 2008, Free Press held its fourth National Conference for Media Reform, the largest gathering of media reformers in the country. More than 3,500 people met at the Minneapolis Convention Center on June 6-8 for this extraordinary assembly of activists, media makers, policymakers, journalists, scholars and concerned citizens. $65,000 in travel and registration assistance was distributed among more than 260 individuals, who might otherwise have been unable to attend the event. Participants met to network, share ideas and tactics, tell their stories, listen to electrifying speeches and brainstorm with one another about how to take back the media. They were joined by such media luminaries as legendary journalists Bill Moyers, Dan Rather and Amy Goodman; noted author Naomi Klein; Internet visionaries Lawrence Lessig, Tim Wu and Arianna Huffington; civil rights leaders Kim Gandy and Van Jones; and political leaders and policymakers including Sen. Byron Dorgan (D-N.D.) and FCC Commissioners Michael Copps and Jonathan Adelstein. In addition to its impressive roster of plenary and keynote speakers, the three-day weekend was packed with more than 100 breakout sessions and nearly 75 hands-on workshops, film screenings and interactive panels. Sessions covered a dizzying range of media topics, including: media ownership, the future of the Internet, war coverage, public broadcasting, media and elections, copyright, the First Amendment and online activism. The conference attracted incredible press coverage, with journalists, bloggers and media makers documenting the event in hundreds of mainstream and non-traditional media outlets across the nation. More than a dozen radio hosts broadcast live from the event. Live streaming video and audio recording allowed thousands of people to experience the event from home; we also had ongoing live video coverage, with the Free Speech TV crew providing extensive coverage of panels and conducting interviews with many speakers. The citizen video group “The Uptake” captured additional NCMR footage through their interviews of participants. They also caught the now infamous Fox News “ambush” of Bill Moyers during his book-signing — seen by more than 400,000 on YouTube alone.

Operations 2008 marked Free Press’ fifth year. With a staff of nearly 40, we’re navigating the challenges inherent in making the transition from a start-up to an organization that can be sustainable over the long run. To ensure our longevity, we’re bolstering our management capacity by training junior staff to take on increased decisionmaking and supervisory responsibilities. In the interest of streamlining our operations, we’ve also merged our campaign and outreach teams into a new program team that is employing a more holistic approach to the planning and implementation of our work. In April 2008, Free Press passed a major milestone when Board Chair Robert W. McChesney stepped down from the position he has held since he helped found the organization in 2003. Bob took on an extraordinarily hands-on role during Free Press’ early

Janice Wood, In Memorium

(1955 - 2008) There are lots of well-known media reformers, but there are many others who work quietly and effectively behind the scenes. Janice Wood, Free Press’ finance manager, was one of those people. Janice joined our staff in October 2005 and died suddenly in August 2008. Her honesty, integrity and clarity helped Free Press build a strong foundation from which to carry on our work to reform our media and strengthen our democracy. She was a superb manager and a wonderful colleague, and she’ll be greatly missed.

years, and worked tirelessly with our development team to secure the resources needed to get us off to a solid start. We are immensely grateful for all that he has done and thankful that he will remain a member of the board. Taking over as chair of both Free Press and the Free Press Action Fund boards is Columbia Law Professor Tim Wu. Wu is a leading authority on telecommunications law and coined the term “Net Neutrality.” He is the co-author of Who Controls the Internet? and is a regular contributor to Slate magazine. He previously worked at Riverstone Networks in Silicon Valley and was a law clerk for Judge Richard Posner and Justice Stephen Breyer. He graduated from McGill University (B.Sc) and Harvard Law School, and has taught at the University of Virginia, the University of Chicago and Stanford Law School.

Major Donors Free Press and the Free Press Action

Steve and Paula Child Foundation

Fund are grateful for support from the

Democracy Alliance

following major funders:

Dudley Foundation Ford Foundation Frances Fund Glaser Progress Foundation Haas Charitable Trust Media Democracy Fund Morgan Family Foundation Nathan Cummings Foundation Open Society Institute Overbrook Foundation Park Foundation Philanthropic Collaborative Quixote Foundation Revson Foundation Rockefeller Brothers Fund Sandler Supporting Family Foundation Streisand Foundation Surdna Foundation Town Creek Foundation Wallace Global Fund William B. Wiener Woodcock Foundation

2008 Free Press Board of Directors: Tim Wu, Chair (appointed 4/08) Marcy Carsey (appointed 4/08) Olga M. Davidson Susan Douglas (resigned, 12/08) James Counts Early Kim Gandy Van Jones Lawrence Lessig Robert W. McChesney (Chair, through 4/08) John Nichols Josh Silver

2008 Free Press Action Fund Board of Directors: Tim Wu, Chair (appointed 4/08) Linda Foley Martin Kaplan Lawrence Lessig Robert W. McChesney (Chair, through 4/08) John Nichols Josh Silver

By the Numbers Revenue Breakdown

Gifts and Grants

86.57%

Special Event

5.69%

Membership

5.43%

Interest & Other

2.31%

Summary: Statement of Activities1

Free press

FP Action Fund

combined

Revenue Contributions (Gifts & Grants) Membership Special Event Interest & Dividends E-commerce

3,951,549 0 284,936 114,220 0

384,020 272,078 0 1,354 42

4,335,569 272,078 284,936 115,574 42

Total Revenue:

4,350,705

657,494

5,008,199

Expenses Future of the Internet Media Ownership Public Media Movement Building & Membership National Conference for Media Reform Total Programmatic Expenses: Management & Administration Fundraising

1,204,389 632,730 118,836 926,645 883,959 3,766,559 91,546 469,132

157,211 161,715 6,573 269,038 0 594,537 34,139 52,177

1,361,600 794,445 125,409 1,195,683 883,959 4,361,096 125,685 521,309

Total All Expenses:

4,327,237

680,853

5,008,090

23,468

(23,359)

109

net Revenue after Expenses

E xpense Breakdown

Summary: Statement of Financial Position

Free Press

FP Action Fund

combined

Current Assets Cash & Equivalents Investments Accounts Receivable Accrued Interest Receivable Prepaid Expenses Advance to Affiliate Security Deposits

343,320 3,170,866 100,902 6,206 56,518 0 14,685

170,526 0 69,361 0 968 75,000 0

513,846 3,170,866 170,263 6,206 57,486 75,000 14,685

Total Current Assets:

3,692,497

315,855

4,008,352

30,746 229,146 (40,669) 219,223

0 0 0 0

30,746 229,146 (40,669) 219,223

3,911,720

315,855

4,227,575

Liabilities Accounts Payable and Accrued Expenses Accrued Personnel Expenses Advance from Affiliate

175,814 77,500 75,000

75,966 0 0

251,780 77,500 75,000

Total Liabilities:

328,314

75,966

404,280

Assets Unrestricted Assets Board Designated Reserve Fund - Program Board Designated Reserve Fund - Operations

583,406 1,500,000 1,500,000

239,889 0 0

823,295 1,500,000 1,500,000

Total Net Assets:

3,583,406

239,889

3,823,295

3,911,720

315,855

4,227,575

Property & Equipment Furniture and fixtures Leasehold Improvements Accumulated Depreciation Program

87.08%

Membership & Fundraising

10.41%

Management & Administration

2.51%

Total Assets

Total Net Liabilities and Net Assets

2

1 This information is excerpted from audited financial statements prepared by Kostin, Ruffkess & Company LLC 2 Report includes inter-organization consolidating eliminations

Free Press and the Free Press Action Fund 40 Main Street, Suite 301, Florence, MA 01062 501 Third Street NW, Suite 875, Washington, DC 20001