Media Forward Fund launches first funding round across three countries

This Monday, the Media Forward Fund launched its first funding round to support journalism.  The Fund is the first cross-border funding programme for journalism across Germany, Austria and Switzerland.  The fund is committed to promoting more independent, quality media with viable business models that publish strong, trustworthy content and have long-term sustainable financing.  This initiative aims to strengthen diversity in journalism and thus democracy itself.

The cross-border Media Forward Fund is an initiative of the Schöpflin Foundation, the Mercator Foundation Switzerland, the Volkart Foundation, the Rudolf Augstein Foundation, the ZEIT-STIFTUNG BUCERIUS, the Stiftung für Medienvielfalt (the Foundation for Media Diversity), the ERSTE Foundation, and the DATUM-Foundation for Journalism and Democracy.  Other backers include the impact investors, Karma Capital, and Publix – House for Journalism & Public Interest.  The Fund is currently endowed with six million euros.  The Fund also received a grant from the German government’s Department for Culture and Media.  Three funding rounds are planned per year: the funding will either take the form of €200,000 for specific projects; or €400,000 for organisations and per medium over a two-year period.

Independent Funding for Independent Journalism

The criteria for the allocation of funds are: transformation; a focus on the user; diversity; independence; and quality.  The aim is to support public-interest-oriented media that sustainably strengthen the media landscape and its role in society.  "For journalism to be sustainably financed, we need media creators who have the courage to experiment with new business models – and also investors who provide the necessary capital for this," says Martin Kotynek, founding managing director of the Media Forward Fund.  "The fund provides media creators with funding from foundations, impact investors and private individuals – the goal being for us, together, to overcome this acute transformation crisis within the media."

"Supporters need to put their money where their mouth is!"

"Journalism needs a lot more money from many more people.  This is the only way our democracies will survive.  Supporters now need to put their money where their mouth is!" says Hans Schöpflin, chairman of the Schöpflin Foundation, speaking about his philanthropic engagement with the Media Forward Fund.  "What we’re talking about here is protecting and strengthening democracy through a strong, functional, independently-operating media landscape," says Schöpflin.  

"A resilient democracy needs a vibrant media landscape; and this is precisely what the Media Forward Fund will defend and strengthen," says Manuel Hartung, chairman of the ZEIT STIFTUNG BUCERIUS.

Andrew Holland, the managing director of the Mercator Foundation Switzerland, says the Fund will provide opportunities for international collaboration.  "The challenges being faced by journalism and democracy can only be solved through cross-border collaboration,” he says.

Impact investor, Sebastian Klein, the founder of Karma Capital, said of his reasons for investing in the Fund, "No one invests in media – and that urgently needs to change.  My goal with the Media Forward Fund is to lead the way and show that it can be done.  I want to encourage others to join in.  It's about mobilising capital," he says.

Boris Marte, CEO of the Austrian ERSTE Foundation, notes that critical journalism is under threat everywhere: "We have been promoting independent journalism and media diversity in Eastern Europe for many years.  But fact-based reporting is also at risk in established democracies like ours.  Now it’s time for action!"

For Stephanie Reuter, the managing director of the Rudolf Augstein Foundation, the Fund is "a strong signal of new beginnings.  Shoulder to shoulder, we are supporting those pioneers working for a well-informed public.  This is the best way to combat news deserts and disinformation campaigns."

Fund with Pooled Resources

Ten initiators have so far pooled resources in the newly founded Media Forward Fund.  "The advantage of a joint pool is that it means no one foundation partner can support a single medium, which could then be associated with specific content.  Instead, the Fund engages more broadly in strengthening media diversity," explains Martin Kotynek.  "There is also a clear separation between donors and the independent fund-awarding jury.  This ensures that funding decisions are not influenced by the donors, either internally or externally."

Who is Eligible for Funding?

The Media Forward Fund is open to projects after the initial idea phase – in other words as soon as a business plan and ideally a first test of product/market suitability report are available.  Media that fill gaps in local and regional reporting are particularly encouraged and will be strong candidates for funding.  Special attention will be given to target groups that – to date - have had little access to journalism.

For smaller media – i.e. up to 30 full-time employees across an entire company – the Fund provides organisational funding of up to €400,000 per grantee.  This means smaller media can then decide for themselves where the funds are best utilised.  Larger organisations are also eligible for funding if they can demonstrate they are oriented towards the common good.  Project grants can then be provided on a 50:50 co-financing basis, with the organisation in question providing 50 percent of the funding.  These latter grants will usually be for a maximum of €200,000 per grantee.  In addition to financial support, the Fund offers organisational assistance, relating for example to media law or business model development.

The MFF Vision

"In an ideal world, the Fund would one day no longer be needed because the transformation crisis in the media sector will have been overcome and quality journalism can once again rely on functioning business models," says Kotynek.  Until then, the Media Forward Fund vision is that foundations and private sponsors will take the lead to establish a privately organised structure for media funding for the three countries in question – namely Germany, Switzerland and Austria.  It aims to demonstrate in practice how independent quality journalism funding works, with the idea that public funding will follow.

For more information, visit www.mediaforwardfund.org