I learned this week that Joseph Atkinson intended the Toronto Star to be run by a charitable trust after his death, which came in 1948. It didn’t work out that way though because of the Charitable Gifts Act, passed after his death, which prevented a charity from owning more than 10 per cent of a business entity.
The Atkinson Charitable Foundation was incorporated in 1942, something the publisher undoubtedly thought reassuring. “There need be no worry on that, ” Atkinson said, responding to a reporter’s question about the fate of the paper after his death. “I am fixing things so nobody can destroy my paper.”
The idea of establishing a charitable foundation and leaving the paper to it was not entirely new to him, his chronicler wrote. He saw newspapers as “public institutions and not simply private enterprises.”
Atkinson left an estate of more than $8 million, the bulk of it to his namesake foundation which, said his will, would direct the profits “for the promotion and maintenance of social, scientific and economic reforms which are charitable in nature, for the benefit of the people of the province of Ontario.”
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On the final page of his book, Harkness stated that while taxpayers gave up $5.6 million in succession duties on Atkinson’s estate in 1948, over the next 14 years they got back more than $7.2 million in grants for educational, medical and charitable purposes. Since 1959, the foundation has distributed a total of $58.9 million to Ontario charities. There remains debate on how much more or less might have been generated for charity if the foundation had retained control of the newspaper.
– Atkinson’s will kept Star’s resolve Toronto Star 6 Nov 2002
Atkinson’s son and four other from the Star’s senior management — including John Honderich’s father Beland — created Torstar Corporation and the Voting Trust to hold the controlling share.
I am still not clear on what the actual share structure is for Torstar, but it would seem to be similar to other newspapers that have some kind of purpose other than profit like the St. Petersburg Times, which is owned by the Poynter Institute journalism school; the Guardian, which is owned by the Scott Trust, or Independent Newspapers Inc., owned by INI Holdings. In the Star and those cases there are principles, like the Atkinson principles, to be upheld or also the flow of profit goes to supporting charity or reinvested in the news operations.
With Torstar profits do go to shareholders, though the company announced today it was cutting the dividend.
This story shows how there have been obstacles to furthering news as a public good.
