Gannett gives paper to foundation

By: Lucia Moses Charity begins at home

Gannett Co. Inc. has divested The Marietta (Ohio) Times to Ogden Newspapers Inc., using a strategy that lets it realize a tax benefit while funding its foundation's nonprofit activities.
Gannett donated the paper last month to the Gannett Foundation, which in turn sold it for an undisclosed sum. Proceeds will fund the foundation, which makes grants to nonprofit organizations in communities where Gannett has operations. The foundation gave away $8.8 million in grants and employee matching gifts last year.
Gannett has used this strategy twice before, when it shed the Niagara Gazette in Niagara Falls, N.Y., to Community Newspaper Holdings Inc. in 1997 and The Saratogian in Saratoga Springs, N.Y., to the Journal Register Co. in 1998.
Gannett wouldn't give details about the benefits of the strategy. Contributing the paper to the foundation could help Gannett avoid paying heavy taxes on profits from the sale, while the foundation may be exempt from tax liability if it uses proceeds for its nonprofit purpose.
The Times may have lost strategic importance to Gannett, which has sold three nearby papers in recent years. It is a good fit with Ogden, which owns the nearby Parkersburg (W.Va.) News and Sentinel, plus six other dailies in Ohio.
Ogden was represented by Dirks, Van Essen & Murray.

(Editor & Publisher Web Site: http://www.editorandpublisher.com)
(copyright: Editor & Publisher June 11, 2001)