Unbiased and accurate local journalism is vital to a healthy democracy and thriving society. Communities rely on local news to establish a mutual understanding of the unique issues in their neighborhoods, build a sense of shared connection and place, and hold their elected officials accountable. Widespread access to fact-based local news is a panacea to divisive and hyperpartisan national cable news; Americans, regardless of political party affiliation, hold local news in higher regard than national news.

The backbone of local journalism—newspapers—has been steadily disappearing for decades at an average of two newspapers closing each week. Today one-fifth of Americans do not have a local newspaper or are at risk of losing theirs.

The collapse of local news has been disastrous for democracy. Research shows that strong local journalism increases civic engagement, reduces bias when voters consider political candidates, and serves the public good by exposing corruption and monitoring government spending.

Reversing the decline of local news is daunting but there is reason for hope. Bold and innovative organizations are advancing effective solutions and need philanthropic funding to scale. To encourage more investment in local journalism, we have outlined the sector’s most pressing needs:

• Supplement the Business Model

The print newspaper business model that was built on advertising revenue and subscriber fees has been eviscerated as more than eight-in-ten Americans now get their news digitally. Local newspapers have struggled to transition to digital platforms, especially in less population-dense areas, creating “news deserts” throughout the country. Policy solutions that involve profit-sharing between Big Tech companies and local news outlets are being explored, but progress will likely be slow.

For the foreseeable future, philanthropy must be a significant part of the business model to stabilize and restore local news organizations, which is common for industries that serve the public benefit. Art museums, for example, are similarly integral to a thriving society and rely on philanthropy to fill an average 30% revenue gap.

There have been many efforts to identify and experiment with new revenue models, however no miracle solution has emerged nor should we realistically expect it to. The best way forward is for philanthropy to step up with long-term, flexible funding that enables local journalism organizations to meet vital community news and information needs.

• Advance Racial Equity

Communities of color that need trustworthy information the most often live in areas where it is difficult to support a local news publication or organization. Only 6% of grants for journalism and news have been awarded to organizations that specifically serve people of color. In addition, racial diversity is lacking in newsrooms, and 52% of journalists believe their news organizations do not have enough employee diversity.

Despite over 40% of the U.S. population being people of color, today’s mainstream journalism is predominantly oriented towards white audiences. Racial equity needs to be a critical component of local journalism.

• Counter Disinformation in the Media

The impact of rampant, often partisan, mis- and disinformation in the media is weakening public confidence in the news. Only 34% of Americans trust the mass media to report the news “fully, accurately, and fairly”. Simultaneously, the rapid rise of AI is presenting even greater challenges to ascertain fact from fiction, such as realistic AI-generated videos and images.

Countering fabricated stories and content in the media will require responsive new tools to address emerging technologies like AI, and a deeper commitment to verifying the legitimacy of information before it is distributed.

• Strengthen Hyperlocal Publications

An often-overlooked type of local news are hyperlocal publications that serve specific racial, cultural, and identity groups. These publications are staffed by community members and have deep expertise on the issues and concerns that matter most to their audience. They are prominent platforms for community activism and events that build cohesion and power for groups whose voices are underrepresented in more mainstream media.

Yet these outlets are often the most resource-constrained and rely on volunteerism to regularly publish stories affecting their communities. It will take more philanthropic attention and investment for hyperlocal publications to survive and fill their critical role for communities.

The challenges facing local journalism are formidable, but there are sources of inspiration from successful partnerships between philanthropists and organizations. NewsMatch, a fundraising campaign launched by the Knight Foundation, has raised $394 million for emerging newsrooms and independent media outlets.

NewsMatch is one example of the tremendous opportunity for impact when funders treat local news as a core part of civic infrastructure. Philanthropy is uniquely positioned to fill the gaps that market forces have not closed: providing the long-term, flexible capital that allows newsrooms to rebuild public trust, diversify their coverage and staff, and reach communities who need accurate information the most. Local journalism is fundamental to the vibrancy of our communities and the survival of our democracy.