From Bennett Roth at CQ Politics (which is itself up for sale):
*The nonprofit-newspaper legislation could boost efforts by a Bay Area investor to takeover the Chronicle. SF Appeal
"We’re losing our local papers and it’s tragic. We need to look at a different model to save local newspapers,” said Sen. Benjamin L. Cardin , D-Md.
Cardin introduced a bill Tuesday that would permit newspapers to operate as nonprofits, or 501(c)3 corporations, much as public broadcasting now does.
Under this arrangement, advertising and subscription revenue would be tax-exempt, and contributions to support coverage or operations could be tax-deductible.
Such a structure would require at least one significant change for most newspapers: They would not be allowed to make political endorsements, a staple of many editorial pages.