Posted by chicagomedia.org on April 14, 2009 at 20:11:04:
Magazine sold by homeless may fold
April 14, 2009 6:34 PM
StreetWise, the weekly Chicago magazine for the homeless, has fallen victim to a hobbled economy and could be forced to close its doors by June if it cannot replace hemorrhaging foundation support, its managers say.
A shutdown would end 16 years of publication and put at risk a non-profit publication that employed homeless Chicagoans as writers and vendors.
"We've been in trouble for a long time, but now we're feeling like we can't dig ourselves out so easily," said StreetWise executive director Bruce Crane.
Trying to stem the tide, the publication has switched from a weekly newspaper to a magazine, changed the makeup of its board and slashed staffing, services to the homeless and costs. The organization has sought to replace lost income with stepped up fundraising and grant-writing, and expanded its efforts to seek out advertisers.
Nevertheless, the savings and new funding sources are not enough to cover the loss of major foundation support that has kept the publication afloat in the past.
"If we get no grants, no economic stimulus funds, if nothing else would happen, we'd be 45 days from going out of business," said StreetWise board vice chairman Pete Kadens.
It costs StreetWise 35 cents to print an edition of the magazine, which it sells to homeless vendors for 75 cents. The vendors sell copies on the street for $2. With the money StreetWise keeps, the non-profit provides job placement and counseling services to its vendors. That service - once provided by paid full-time employees - has been slashed.
There are 225 vendors selling the paper right now, Crane said. But circulation has fallen from 9,000 a week to nearly 7,000. Foundation support has dropped by about 60 percent in the economy, and payments to the paper's printer are in arrears.
"They're really in trouble," said Ald. Manny Flores (1st), who is trying to rally support for the paper. "They're in danger of going out of business. I think a lot of people don't know this. I think they think this is government subsidized, but it's not."
Flores sponsored a resolution honoring the organization on March 18. A news conference to publicize StreetWise's troubles will be held Wednesday to coincide with a City Council Committee on Human Relations hearing on its plight, he said.
"There are real faces behind this organization," he said. "This is not your typical local newspaper. This is a local newspaper with a unique component - people on the verge of being down and out. These are moms and dads who have kids."
Supporters are hoping to buoy the homeless paper's finances with Community Development Block Grants, stimulus funding or stepped up philanthropy, he said.
--James Janega, Chicago Tribune