Tax data shows MinnPost finished 2008 with "substantial deficit"
MinnPost, the nonprofit journalism Web site launched in late 2007 by former Star Tribune publisher Joel Kramer, burned through a pile of cash in 2008 as it ramped up its operation to provide a "thoughtful approach to news."
It made the figures public on its Web site today. Total expenses tripled for MinnPost in 2008 compared to 2007; the biggest increase came from salaries, which grew 300 percent. Total revenues in 2008 were down by a third compared to the previous year; contributions were also down, but other revue streams showed some robust growth.
Some of the hard numbers on the revenue side (you can download the full pdf file here):
Contributions and grants
2007: $1,522,042
2008: $832,220
Program service revenue
2007: $9,239
2008: $160,259
Investment income
2007: $5,034
2008: -$2,044
Total revenue
2007: $1,536,951
2008: $991,075
From the expense side:
Salaries (14 employees are listed on the form)
2007: $178,481
2008: $661,990
Other expenses
2007: $369,585
2008: $779,299
Total expenses
2007: $548,066
2008: $1,411,289
Bottom line
Subtract the revenue from expenses for 2008 and MinnPost shows it was in the red: -$450,214. That compares to $988,885 the previous year.
Kramer took note of the red ink this way:
MinnPost's financial report showed a substantial deficit for 2008, after a substantial surplus in 2007. This is because MinnPost launched late in 2007, and in 2008 -- our first full year -- we spent a lot of the startup money raised in 2007.
Kramer promises more up-to-date numbers for 2009 later in January.
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