20

09
FREE P R E S S 2009 ANNUAL R EP OR T
WHO WE ARE
Free Press is a national, nonpartisan,
nonprofit organization working to reform
the media. Our goals are to promote diverse
media ownership; quality journalism;
universal access to fast, affordable, open
Internet service; and vibrant public and
independent media.
We are among the most effective nonprofit
organizations in the country and the largest
focused solely on media policy. Through
research, education, organizing and
advocacy, we’re working to create a more
accountable, diverse and democratic media
system that truly serves the public interest.
Free Press is tax exempt to the extent
allowed by law under 501(c)(3) of the
IRC. Contributions to Free Press are tax-
deductible as charitable donations. Free
Press is supported by private foundations,
public charities and many individual donors
The 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 mobilize our
members to take action when the timing
is right and when the opportunity to win is
real.
The Free Press Action Fund is tax exempt
under 501(c)(4) of the IRC. Contributions to
the Action Fund are not tax-deductible as
charitable donations or business expenses
under IRC S162(e). The Action Fund is
supported by contributions from individuals
and from public charities. Lobbying is
critical to our success.

SUPPORT US!
We encourage you to get involved in our work. Visit our websites for frequent updates on
important media issues. Sign up to receive periodic e-mail alerts (we don’t SPAM). And equally
important, give us your financial support at a level that is meaningful for you. We accept
gifts by cash, check, credit card or stock. We also accept planned gifts. Automatic monthly
contributions may be made in support of the Free Press Action Fund. For more information,
call 877-888-1533 x 504 or visit www.freepress.net/donate
Dear Friend,
2009 was an exceptional year for Free Press and blogosphere, and we’re getting the word out through every means possible, including YouTube,
online social media sites like Facebook and Twitter, and other websites and online tools.
the Free Press Action Fund. A new administration In 2009, we launched our SavetheNews.org campaign to address the crisis in journalism and the
altered the political landscape, bringing reform newspaper industry. Through this campaign, we’re identifying policy solutions to support the
quality journalism our democracy needs, policies such as changes to the tax code and bankruptcy
opportunities we wasted no time in seizing. law and new nonprofit approaches. We’ve also been laying the groundwork to build support for
the expansion and revitalization of our public media system. A House vote in the fall of 2009 to
We played a pivotal role in the allocation of more than $7 billion in federal funds for issue new licenses to community radio stations across the country was the result of many years of
broadband buildout to under- and unserved communities. Our efforts helped to bring hard work by Free Press and our independent media allies.
about the long-awaited release of a National Broadband Plan that sets goals for broadband
This was also the year when media consolidation once again reared its ugly head. When the buzz
adoption and deployment for the next 10 years. And most recently, after years of sustained
began in early fall that cable and Internet giant Comcast was planning to take over NBC Universal,
advocacy by Free Press activists, the FCC announced the start of a rulemaking proceeding
Free Press quickly mobilized its base. This dangerous deal, which would result in higher prices and
for Net Neutrality, the principle that ensures consumer choice and the free flow of
fewer choices for consumers and less competition in our media markets, has proved to be a great
communications online.
on-ramp for new activists.
But now the real fight for better media begins — because the closer we get to
Finally, we convened the Free Press Summit for the first time in 2009, bringing together key
implementing these key public interest policies, the more opposition we face from
policymakers, public interest advocates, entrepreneurs, media makers, and hundreds of engaged
industry, which is employing dirtier tactics and has deeper pockets than ever before.
people to Washington, D.C. The central theme of this successful event was also the focus of our work
In order to control Internet traffic and to fight competition that could lower prices and this year: the need to develop a comprehensive communications policy framework that recognizes
expand consumer choice, the telecom industry has spent record amounts of money on the connection between Internet and journalism policy and seeks to ensure the future of both.
lobbyists to spin Net Neutrality as anti-business. They are seeding fake grassroots groups to
In short, 2009 has been a year of great accomplishment for Free Press and the Free Press Action
create the illusion of popular support for their anti-consumer practices. And they’re lining
Fund. And for this, we must thank our tireless activists and our loyal supporters for carrying the
the coffers of lawmakers willing to act as their shills.
torch during these exciting times. We are inspired by and grateful for all you do and look forward
And what we’re finding is that the promise of change that swept President Obama into office to a brilliant 2010.
at the beginning of 2009 has dissipated in a Washington that remains beholden to corporate
Onward,
special interests and the status quo. The names have changed for the leadership posts of
key committees and agencies, but the old ways of governing are still deeply entrenched.
Our challenge is to hold new leadership to earlier commitments, to engage our activists in
fighting new threats, and to promote media policy that serves the public interest.
And that’s exactly what we’re doing.
We’re producing groundbreaking papers that are serving as a roadmap for a vision
of people-powered media policy. At the same time, we’re driving tens of thousands
of activists to contact the Federal Communications Commission and their elected
representatives and mobilizing hundreds of civic organizations and small-business groups.
We’re making sure media issues keep a high profile in the mainstream press and the
Josh Silver Timothy Wu
President & CEO, Chairman of the Board,
Free Press & Free Press Action Fund Free Press & Free Press Action Fund
 OPEN INTERNET
2009 Campaigns
Americans are consuming more and more media online, as
newspapers, radio, television and telephone service migrate
to digital platforms. For that reason, a viable long-term
agenda for media reform must address the quality of media
content as well as distribution of that content. Accordingly,
our policy efforts address three inter-related areas — Internet,
journalism and public media — within a comprehensive
framework. Building popular support for this reform agenda is
a critical component of each of our campaigns.
High-speed Internet — or broadband —
has become a basic public necessity, just
like water, gas or electricity. It enables
everyday people to have their voices heard
everywhere, by everyone, at the click of a
mouse. It’s also an increasingly vital engine
for education, employment, health and
safety, government services and recreation,
with uses ranging from telemedicine to
telecommuting.
Broadband has become essential to
economic growth and innovation. Now-
iconic firms like Google, eBay and Amazon
— all of which began as web-based startups
— demonstrate broadband’s promise and
economic power.
In their day, radio, TV and cable held similar
promise. But very quickly, these media came
under the control of powerful commercial
interests.
Now the telecommunications industry wants
to eliminate Net Neutrality by turning the
open Internet into a private toll road and
is intent on keeping new competitors out
of the broadband marketplace. As a result,
 Here are some of our Internet policy wins
in 2009:
• The launch of a Net Neutrality
rulemaking process at the FCC. After
years of concerted advocacy by our
activists and allies, the FCC in October
2009 announced plans to pass new rules
to protect Net Neutrality. In response,
the phone and cable companies
have resorted to scare tactics and are
spreading misinformation, claiming that
Net Neutrality will result in job losses and
widen the digital divide. Free Press has
• The release of the FCC’s National
been refuting these false claims through
the United States has some of the slowest,
our online and on-the-ground grassroots
most expensive and least accessible Internet
organizing, our critical research and
service among industrialized countries;
analysis, our outreach and educational
three out of 10 Americans still do not have
initiatives, and our earned media
broadband service.
strategies. A final rule is expected in 2010.
Free Press recognizes that access and
• The allocation of $7.2 billion toward
affordability are key elements of a free
broadband buildout in the American
and open Internet and that we must do
Reinvestment and Recovery Act. This
everything we can to bridge the digital divide
historic broadband stimulus package also
and bring the benefits of broadband to all
included requirements for minimum speeds
Americans.
and an open Internet — following award
• Our victory in stopping Time Warner
guidelines proposed in our white papers.
surcharges as high as $150 per month on
customers exceeding a very low monthly
usage cap (typically by downloading
video files that competed with the
company’s own cable service).
• Our successful advocacy for federal
antitrust investigations. When Apple
released its new iPhone in June 2009, Free
Press launched its FreeMyPhone initiative,
rallying more than 17,000 activists to
protest the exclusive agreements that
tether smart phone owners to a single
wireless carrier. Both the Department of
Justice and the FCC began investigations
Broadband Plan. Mandated as part
into anti-competitive practices in the
of the stimulus package, this plan —
wireless industry.
which Free Press has long been calling
for — aims to bring fast, open and
affordable Internet to all Americans. Free
Press activists submitted nearly 30,000
comments to the FCC’s open docket and
contacted the agency close to 85,000
times. Our research team filed hundreds
of pages of recommendations to help
shape the plan.
Cable’s price-gouging. Bowing to
protests by more than 15,000 Free Press
activists, Time Warner Cable shelved its
plans to impose unwarranted Internet
 JOURNALISM
& MEDIA OWNERSHIP
Journalism:
Between 2008 and 2009, more than 25,000
journalists and newspaper employees lost
their jobs. Dozens of major dailies have been
shuttered or face imminent bankruptcy, and
many of the remaining papers are critically
understaffed. This crisis in journalism is a
matter of vital public concern given a recent
Pew study showing that traditional media —
newspapers, as well as radio and television —
still produce 95 percent of original reporting.
While sinking ad revenues are partly to blame,
many profitable newspapers are folding
because their publishers are drowning in debt
from buying up other newspapers.
Bad policy decisions unleashed the rampant
consolidation that now endangers the health
of our press, and it will take good policy people, with 14 roundtable discussions. In it would trigger a new wave of media
decisions to reshape our media system November, we mobilized more than 2,000 consolidation as other companies try to build
and save journalism. people to submit comments to the Federal their own media empires.
Trade Commission on the state of local news
As a first step toward identifying in their communities Even before news of the deal became
policy solutions, Free Press in spring official, Free Press organized a protest calling
2009 convened a series of roundtable Media Ownership: for antitrust enforcement against it. More
discussions with leaders in journalism, In December, cable and Internet giant than 20,000 people voiced their outrage to
academia and philanthropy in New Comcast announced its plan to buy NBC lawmakers in Washington. And Free Press and
York and Washington, D.C. Participants Universal. Comcast is both the largest Consumer Federation of America produced
discussed a range of alternative models U.S. cable company and the largest U.S. a report, Why the Comcast/NBC Merger Poses
for news delivery and the federal or state residential Internet service provider. a Major Threat to Video Competition that
legislation that would be needed to Antitrust Authorities Cannot Ignore.
make these models viable. The merger would mean higher prices and
fewer choices for consumers across the Free Press will continue to mobilize the public
country. It will likely lead to layoffs at local to fight this merger in 2010.
We are exploring policies that would
media outlets and will stifle competition
ease the path for news outlets to become
in cable and online services. Even worse,
nonprofit or low-profit organizations
committed to a social good; alter
bankruptcy laws to encourage local
and diverse media ownership; improve
media literacy and journalism education;
and put young journalists to work in the
communities that need them most —
just to name a few.
In addition to leading the search for
policy fixes to the crisis in journalism,
Free Press is also getting the public
involved in this effort. In September,
Free Press organized Saving the News:
Denver and the Future of Journalism,
an event attended by more than 200
PUBLIC MEDIA
The decline of commercial journalism
makes the need for well resourced,
politically insulated, diverse public media
all the more urgent. But is there sufficient
private revenue – in the form of ads,
subscriptions and philanthropy – to pay
for the necessary international, national
and local journalism our society needs?
The answer is no.
Public media, which include National
Public Radio and the Public Broadcasting
Service, offer a model on which to build,
but the current system faces a long list
of structural problems. Necessary fixes
include significant increases in public
subsidy; a stronger political firewall
between funding and content; benchmarks
for improved station management and
leadership; and an expanded definition of
what constitutes public media (community
radio and television, for example, should be
included in any definition).
To address these challenges, Free Press has
launched our NewPublicMedia.org campaign
to reinvent public media in America. We’ve
been developing relationships within
the public broadcasting community and
working collaboratively with independent
media organizations to identify and
promote policies to preserve, strengthen
and expand public media.
In December, Free Press and our allies in the
decade-long and hard-fought campaign for
community radio achieved a huge victory
when the House of Representatives passed
the Local Community Radio Act.
This landmark bill would expand Low Power
FM radio across the country, opening the
airwaves to hundreds of new community
radio stations. The win in the House is an
important step in the fight to build and
diversify local radio, and is the farthest this
legislation has ever come. Senate passage is
expected in 2010.
EXAMPLES OF 2009 Free Press Activities
In 2009, Free Press:
• Spread the message about the need
for media reform, garnering more than
900 press hits. We also appeared on
radio and TV more than 150 times.
• Produced dozens of YouTube videos
and three multimedia series – America
Offline, Wired Less and Five Days on the
Digital Dirt Road – about life without
broadband access in rural and urban
America.
• Broadcast 52 editions of Media
Minutes, our weekly radio show
reaching 60 stations and thousands of
podcast listeners.
• Maintained a presence of more than
50,000 fans on popular social networking
sites like Facebook and Twitter.
• Drove our e-activists to contact
members of Congress and the FCC more
than 250,000 times.
• Worked closely with hundreds of other
groups both within and outside the
media reform movement to achieve
common public interest goals.
• Published 29 sets of comments and reply
comments to the FCC and 16 stand-alone
studies that support our arguments and
debunk industry myths, while providing a
roadmap for policymakers on current and
emerging issues.
• Convened a major D.C. policy summit,
three journalism roundtables and three
broadband forums, events that generated
new ideas, inspired people to take action
and forged important connections among
allies with shared interests.
2009 SUMMIT:
Changing Media
The room was packed at our sold-out Free Press Summit:
Changing Media, held at the Newseum in Washington,
D.C., on May 14, 2009.
Supported by the John S. and James L.
Knight Foundation, the summit was Free
Press’ first, and it brought together more
than 500 top journalists, philanthropists,
public broadcasting and independent
media producers, educators, policymakers,
grassroots activists, telecommunications
industry entrepreneurs and civic leaders.
We broke the typical D.C. summit mold by
balancing speeches and panel discussions
featuring leading policymakers and industry
leaders with the voices of everyday people
and public interest groups.
The day kicked off with a presentation of our
new book, Changing Media: Public Interest
Policies for the Digital Age. The book provides
groundbreaking research and analysis on
achieving universal, open and affordable
Internet access, answering the crisis in
journalism, and building a world-class public
media system.
Speeches from FCC Acting Chairman
Michael Copps; Vivian Schiller, president of
National Public Radio; and Susan Crawford
of President Obama’s National Economic
Council followed the Changing Media
presentation.
Just before lunch, the summit featured a
roundtable discussion on our changing


media landscape with former FCC Chairmen
Michael Powell and Reed Hundt; Free
Press Policy Director Ben Scott; Google
founding board member Ram Shriram; and
congressional aide Jessica Rosenworcel. The
roundtable was moderated by Ray Suarez, individual input was shaping the discussion.
senior correspondent for The NewsHour on PBS. This model — which we have also begun using
in our other forums — allows us to better craft a
The second half of the day featured small group policy agenda based on public input.
discussions about the future of media.
More information on the 2009 summit,
Representatives from a variety of backgrounds including transcripts and videos, is available
were seated together. Gathered at one table at www.freepress.net/summit09. Information
were two retired journalists, a Native American on our successful 2010 summit can be found
telecom expert working at the FCC, an advocate at www.freepress.net/summit.
for minority advancement in communications,
and a teacher.
After debating a broad range of ideas,
participants used wireless keypads to vote Date Report Summary Outcome
on their policy priorities. This technology
allowed Free Press to gather real-time feedback
through a computerized polling system, and
participants could instantly see how their
2009 Saving the
News:
Dismantling
Digital

Research
Deregulation:
Toward a
National Toward a National
Journalism Broadband
Strategy Strategy

Highlights: April 2009

Lays out specific policy fixes to the
crisis in journalism.
Impact
Free Press Policy Director Ben Scott
May 2009
Analyzes the failed policies at the root of
America’s broadband decline and makes
specific recommendations for reform.

Impact
is invited to testify before Congress The FCC’s March 2010 National
Putting the Deep Packet on policy solutions proposed in the Broadband Plan includes numerous
report. reforms proposed in the Free Press report.
Angels in the Inspection:
Details
The End of the
A Roadmap Internet as We
for Broadband Know It? Digital Deja Finding the
Stimulus Vu: Bottom Line:
Success
Old Myths in The Truth
the Network About Network
Neutrality Neutrality &
February 2009 March 2009 Debate. Investment
Offers specific recommendations Sheds light on a little known technology
to federal agencies for ensuring the that allows phone and cable companies
short- and long-term success of the to spy on their customers’ Web activities
$7.2 billion broadband stimulus and control online content.
investment. Impact
Free Press is invited to testify September 2009 October 2009
Impact Debunks ten myths spread by Rebuts industry misinformation that Net
The two federal agencies charged before Congress on the issue.
The FCC relies on our findings in broadband providers to confuse the Neutrality will reduce network investment.
with setting award guidelines public and policymakers about Net
adopt nearly all of Free Press’ announcing the start of its process Impact
to pass new Net Neutrality rules. Neutrality.
recommendations —including The report is relied on extensively
open Internet requirements. Impact by Net Neutrality supporters and
In October 2009, the FCC announces discredits a primary talking point of Net
it will begin a rulemaking process to Neutrality opponents.
secure Net Neutrality.
MAJOR
Steve & Paula Child Foundation Park Foundation

Cutts Foundation Quixote Foundation Inc.

DONORS
craigslist Charitable Fund Rockefeller Family & Associates

Democracy Alliance Sandler Foundation

Dudley Foundation Streisand Foundation

Ford Foundation Surdna Foundation

Free Press and the Free Press Frances Fund Wallace Global Fund

Action Fund are grateful for Otto Haas Charitable Fund William B. Wiener, Jr. Foundation

support from the following John S. and James L. Knight Foundation Woodcock Foundation

major funders: Open Society Institute

Free Press and the Free Press Action

Fund are supported by individuals,
foundations and public charities. We
do not accept funds from businesses,
government or political parties.
BY THE REVENUE PIE CHART

NUMBERS
■ Gifts and Grants 92.42% 3,732,504
■ Membership 5.88% 237,504
■ Special Event 0.02% 928
■ Interest 1.67% 67,556
Total Revenue 100.00% 4,038,492

SUMMARY: STATEMENT OF FINANCIAL POSITION1 FREE PRESS FP ACTION FUND COMBINED

CURRENT ASSETS EXPENSE PIE CHART

Cash & Equivalents 999,106 276,715 1,275,821
■ Program 81.88% 3,247,305
Investments 2,272,758 0 2,272,758
■ Management & Administration 7.92% 314,264
Accounts Receivable 325,024 1,320 326,344 ■ Membership & Fundraising 10.19% 404,299
Accrued Interest Receivable 21,463 0 21,463 Total Expenses 100.00% 3,965,868
Prepaid Expenses 59,759 2,663 62,422

Advance to Affiliate 0 75,000 75,000
Security Deposits 14,685 0 14,685
Total Current Assets: 3,692,795 355,698 4,048,493
SUMMARY: STATEMENT OF ACTIVITIES2 FREE PRESS FP ACTION FUND COMBINED
PROPERTY & EQUIPMENT
REVENUE
Furniture and fixtures 30,746 0 30,746 Contributions (Gifts & Grants) 3,577,203 155,301 3,732,504
Leasehold Improvements 229,146 0 229,146 Membership 0 237,504 237,504
Accumulated Depreciation (69,733) 0 (69,733) Educational Materials 0 928 928
190,159 0 190,159 Interest & Dividends 66,693 863 67,556
Total Assets 3,882,954 355,698 4,238,652 Total Revenue: 3,643,896 394,596 4,038,492

LIABILITIES
EXPENSES
Accounts Payable and Accrued Expenses 110,367 63,090 173,457 Future of the Internet 1,102,662 91,446 1,194,108
Accrued Personnel Expenses 94,277 0 94,277 Media Ownership 561,419 43,407 604,826
Advance from Affiliate 75,000 0 75,000 Public Media 477,719 26,860 504,579
Total Liabilities: 279,644 63,090 342,734 Movement Building & Membership 682,053 114,744 796,797
Conferences & Special Events 146,994 0 146,994
ASSETS
Total Programmatic Expenses: 2,970,847 276,458 3,247,305
Unrestricted Assets 603,310 292,608 895,918
Management & Administration 303,097 11,167 314,264
Board Designated Reserve Fund - Program 1,500,000 0 1,500,000
Fundraising 350,048 54,251 404,299
Board Designated Reserve Fund - Operations 1,500,000 0 1,500,000
Total All Expenses: 3,623,992 341,876 3,965,868
Total Net Assets: 3,603,310 292,608 3,895,918
NET REVENUE AFTER EXPENSES 19,904 52,720 72,624
TOTAL NET LIABILITIES AND NET ASSETS 3,882,954 355,698 4,238,652

#1: This information is excerpted from audited financial statements prepared by Kostin, Ruffkess & Company LLC #2: Report includes inter-organization consolidating eliminations
 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
Free Press and the Free Press Action Fund
bridged, we’re advocating for broadband buildout that will connect every American to fast, open and affordable
40 Main Street, Suite 301, Florence, MA 01062
Internet. In addition to challenging illegal corporate interference with Internet traffic, we’re working to pass Net
501 Third Street NW, Suite 875, Washington, DC 20001
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,