Editors' pick: Originally published Feb. 1.

By Rem Rieder

Traditional news outlets, particularly newspapers, are facing enormous financial challenges. With tensions between the Trump Administration and the media already high, a vigorous press is more critical than ever.

An intriguing experiment in Philadelphia aims to improve the prospects that journalism, regardless of platform will survive and thrive.

Last September, Gerry Lenfest, owner of The Philadelphia Inquirer, Philadelphia Daily News and philly.com, donated his holdings to a new nonprofit, the Institute for Journalism in New Media. Lenfest, a billionaire philanthropist whose mission is to preserve the news organizations for the sake of the region and not to amass big profits, hopes the new approach can be a test lab for innovative ways of safeguarding quality journalism.

Ken Doctor, a top media analyst who writes at newsenomics.com, sees the initiative as a promising effort.

"I'm impressed by the caliber of digital advisers that (institute CEO and Executive Director) Jim Friedlich is now bringing to the questions of Philly's future," Doctor said. "I believe that the models -- in reporting, in design, in mobile products, in new ad models and social distribution -- no longer need to be invented. They need to be applied to the local/metro press from the learnings of the increasingly successful national pioneers.... So the challenge, I think here, is fast innovation."

Says Rick Edmonds, who analyzes media economics at Florida's Poynter Institute, a nonprofit journalism training organization, "It's a very interesting experiment." In October, Poynter honored Lenfest with its Distinguished Service to Journalism Award.

In a recent interview, Friedlich, four months into his new gig, stressed the institute is strictly nonpartisan. At the same time, without mentioning the president, he emphasized the urgency of the undertaking.

"There's little doubt that this mission is more important now than ever before," he said. "Journalists play a vital role as watchdogs of government, but don't always have the resources to properly do their jobs. Right now, some in government are fiercely critical of the media. A strong and independent press is fundamental to our democracy, but the news industry requires a sustainable business model to effectively meet its responsibilities. There is a need for a non-partisan institute devoted simply to making journalism more successful, more effective and more sustainable irrespective of politics."

The institute is funded by an endowment, jump-started by Lenfest's $20 million donation and augmented by an additional $5 million gift from institute board member David Haas and the Wyncote Foundation. Once the institute has developed a track record, it will pursue fund-raising in earnest.

While the Philly news outlets belong to a nonprofit, they still function as a business. But Lenfest converted Philadelphia Media Network, the parent company, into a public benefit corporation aimed at long-term sustainability rather than short-term profit.

"Thanks to the structure, there is no debt, no debtors, no public shareholders or security analysts at the door," said Friedlich, a former Wall Street Journal business executive. "That's enormously liberating for the business and the journalism."

It's important to note the Philly news outlets can't rely on the institute for handouts to cover losses. They have to make their own way. But they can benefit from both grants and expertise from the institute as well as the more forgiving corporate structure.

Lenfest said supporting journalism is as critical as supporting museums and orchestras. He once said that while he has given away more than $1 billion, he has never undertaken anything as important as trying to save the Philly news organizations, given their essential role in a democracy.

Friedlich said the institute has three objectives. The first is to support "the need and opportunity for heritage news organizations to evolve in the digital age, to develop new digital content, to communicate on new mobile and social platforms, and to find new ways to inform and delight readers."

The second goal is to foster "fundamental innovation," news outlets or journalistic initiatives "that are built from scratch, native digital products and services that ultimately may disrupt heritage organizations." He cites Vox, Vice, Mic.com, Billy Penn and Quartz as examples.

The third leg of the tripod is new tools that amplify the impact of great journalism. Said Friedlich, "We support investigative, enterprise and watchdog journalism, but seek to do so in a way that engages diverse new audiences, builds new organizational muscles and new technical skill sets. We are interested in experimenting in Philadelphia in ways that others can replicate around the country."

The institute's first two grants went to the home team, the Philly news outlets. The first is for soon-to-begin cutting-edge digital training for the Philadelphia Media Network newsroom-social media, multimedia, analytics, digital storytelling, you name it.

The second is to build on the news outlets' powerful project on environmental poisoning called Toxic City, a piece Friedlich found particularly impressive. The grant will cover additional environmental testing, outreach to affected communities, collaboration with local radio station WURD, investment in software for SMS messaging for areas with high cellphone but low Philadelphia Inquirer penetration, and reporting on public policy approaches by other cities with lead problems.

In addition, the institute works with the news organizations day to day on such matters as best strategies for paid digital content; improving the mobile product; and building partnerships with other local news outlets.

As for grants to other organizations and entrepreneurs in the region and across the country, the institute is brainstorming just where the innovation dollars should go. The current thinking is that given the enormous amount of innovation already in the works, it may well be most effective to support a number of initiatives rather than build its own lab.

Meanwhile, word of the institute's work is spreading: Friedlich spent the holidays in Australia courtesy of the Sydney Morning Herald and the Melbourne Age. The institute is also working with the Dallas Morning News, New York's Daily News and Minneapolis' Star Tribune.

"The mission has become national if not global," Friedlich said, "sustaining great metro journalism wherever it is practiced."

And it's clear that Friedlich is finding that mission exhilarating.

"I feel like I've died and gone to heaven," he said, "except for the dying part."