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Page 1: magazine and Mother-assets.motherjones.com/about/MotherJones_AnnualReport_2004.pdfsive analysis of critical issues. Mother Jones is the largest-circulation independent progressive
Page 2: magazine and Mother-assets.motherjones.com/about/MotherJones_AnnualReport_2004.pdfsive analysis of critical issues. Mother Jones is the largest-circulation independent progressive

The nonprofit Foundation for National Progress publishes Mother Jones magazine and Mother-Jones.com, produces “Mother Jones Radio,” and directs the Mother Jones Internship Program.

Mother Jones produces revelatory journalism that, in its power and reach, seeks to inform and inspire a more just and democratic world.

M I S S I O N S TAT E M E N T

Contact Information

222 Sutter Street, 6th floorSan Francisco, CA 94108

(415) 321-1700(877) GIV-MOJO

www.MotherJones.com

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CONTENTSA Letter from Mother Jones’ Publisher

What We Do

Impact: By The Numbers

Media Outlets

How Does A Magazine Make A Difference?

2004 Feature Stories

Financial Statement

Contributors And Supporters 2004

Staff

Board Of Directors 2004

Giving Opportunities

Guide To Cover Timeline

5

6

8

8

10

17

18

21

23

25

26

28

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M O T H E R J O N E S A N D T H E F O U N D A T I O N F O R N A T I O N A L P R O G R E S S A N N U A L R E P O R T 2 0 0 4�

Dear friends,

As I write this, well into 2005, the events, accomplishments and frustrations of 2004 seem far away. Today, though, I have enjoyed reflecting on last year with the benefit of a longer view.

What strikes me most forcefully is how the troubling saga of the news business has continued to unfold. Last year the profound limitations of the commercial news media were there for all to see (Remember the broadcast news’ treatment of the “Swift Boat Veterans” and “Rather-Gate”?) But if anything, the state of “the media” in 2005 has moved even more clearly into view as one of the central political chal-lenges of our time.

This year, let’s not forget, Time Inc.’s Norman Pearlstine capitulated to a court order for a reporter’s notes, while New York Times reporter Judith Miller was sent to jail for refusing to disclose sources for a story she never wrote. The nation still has no clear idea of the disaster unfolding in Darfur, or of the worsening situation in Afghanistan or Iraq, or of the tremendous threat posed by global warming. Given the chance, the Bush administration continues to manipulate the press, trying to disguise a dangerously incompetent political regime and to hide its cronyism behind a wall of secrecy and the fig leaf of national security.

Perhaps with Hurricane Katrina, the commercial media has found some backbone. This much is clear, however: there has never been a more important time for a fearless independent press. Mother Jones is extremely proud to be a part of that tradition. And we are evermore grateful to you, our friends and supporters, for being there with us.FR

OM

TH

E PU

BLIS

HER

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A N N U A L R E P O R T 2 0 0 4 M O T H E R J O N E S A N D T H E F O U N D A T I O N F O R N A T I O N A L P R O G R E S S �

MOTHER JONES MAGAZINE

The flagship project of the Foundation for National Progress, Mother Jones magazine was launched almost thirty years ago to provide a diverse national audience with investigative journalism and thoughtful, progres-sive analysis of critical issues. Mother Jones is the largest-circulation independent progressive magazine in the United States; six times a year, more than 250,000 readers pick up a copy to get the best in-depth re-porting on the issues of the day. MOTHERJONES.COM

In 1993, Mother Jones became the first general-interest magazine on the Internet. From its inception, MotherJones.com has broadened the reach and impact of the Foundation for National Progress through its blend of original content and material first presented in the pages of Mother Jones magazine. MotherJones.com serves over one million page views and an average of 300,000 unique visitors per month. Through its free weekly newsletters, MoJournal, Must Reads, and Informed Dissent, the site maintains regular contact with over 50,000 readers each week.

WH

AT W

E D

O

A MAGA ZINE AND MORE

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M O T H E R J O N E S A N D T H E F O U N D A T I O N F O R N A T I O N A L P R O G R E S S A N N U A L R E P O R T 2 0 0 4�

MOTHER JONES RADIO In mid-2005, “Mother Jones Radio” went live on the Air America Radio Network, reaching audiences across the country who otherwise might not have access to Mother Jones’ in-vestigative reporting. Every Sunday, listeners can now tune to their AM band and hear host Angie Coiro talk with the likes of columnist Paul Krugman, Iraq vet and activist Paul Reickhoff, Mother Jones’ Baghdad correspondent David Enders former Iraqi nuclear scientist Mahdi Obeidi, artist Ry Cooder, Repre-sentative Barbara Lee and many others.

MOTHER JONES INTERNSHIP PROGRAM

Since 1980, Mother Jones has provided editorial internships to aspiring journalists. Interns work side-by-side with se-nior magazine and MotherJones.com editors fact-checking, reporting and writing original stories. Since the program’s inception, Mother Jones has given nearly 600 students and graduates intensive real-world experience in the essentials of

WHERE THEY ARE NOW

A Sampling Of Mother Jones Intern Job Placements

PRINT MEDIA

Associated PressAustin American-Statesman

Baltimore SunBritish Medical Journal

Chicago ReaderChronicle Books

Dallas Business JournalDwell

Earth Island JournalEast Bay Express

Ebony Entertainment Weekly

FEM Friction Health

Hyphen Idaho Spokesman-Review

Institutional InvestorJane

Los Angeles TimesMarin Independent Journal

Modesto BeeThe New Republic

New York Law JournalNew York Times

Pacific News ServicePhiladelphia Inquirer

The ProgressiveReuters

Rural AmericaSan Francisco Business Journal

San Francisco ChronicleSan Francisco

Self SF Weekly

South Asia JournalSunset

The DakotanThe Recorder

Time U.S. News and World Report

Wall Street JournalWashington Post

Washington TimesYoga Journal

ELECTRONIC MEDIA

AlterNetCNNConsumer Health InteractiveESPNFrontlineKGO-AM KPFA KQED FM Salon.comVoice of America TV, Beijing

NGOS AND GOVERNMENT

Alameda County Board of SupervisorsAmnesty InternationalBreast Cancer ActionCenter for Investigative Reporting Center for Responsive Politics Center for the Advancement of HealthCivil Justice Foundation Fannie Mae FoundationHabeas Corpus Resource CenterJossey-BassMcGraw HillNew York City Department of InvestigationPartners for Youth with DisabilitiesPhysicians for Social ResponsibilityRainforest AllianceSan Francisco Bicycle CoalitionSan Francisco OperaSierra Club BooksSouth End PressSouthern Utah Wilderness AllianceTake to the HillsThe ExploratoriumThe Nature ConservancyU.S. Department of JusticeYIVO Institute Youth Media Council

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A N N U A L R E P O R T 2 0 0 4 M O T H E R J O N E S A N D T H E F O U N D A T I O N F O R N A T I O N A L P R O G R E S S �

ESTIMATED AuDIENCE IMPRESSIONS: 2004

TYPE AuDIENCE NuMBER OF OuTLETS

Print

Radio

TV

Web

41,704,650

28,047,200

13,602,000

978,168

132

207

17

55

TOTAL 84,332,018 411

MEDIA OuTLETS

–and many more

investigative journalism. The success of the program is evidenced in the careers of its alumni. Mother Jones interns and fellows have gone on to prominent positions in journalism at the New York Times, Newsweek, Time, The Los Angeles Times, CBS News, Reuters, National Public Radio and many other print and broadcast news media.

GROWING STRONGER IN TROuBLED TIMES

In 2004, Mother Jones magazine had a paid readership of over 250,000–the highest in our 29-year history, nearly twice the readership of just six years ago. To our knowledge, this is the high-est circulation level for an independent, progressive magazine in the United States since the 1920s, and because our research sug-gests a “pass-along” readership of another 1.2 readers per copy, we estimate that we reach 750,000 or more Americans directly with every issue. Traffic to our Web site, meanwhile, is running between 300,000 and 500,000 unique visitors per month; our research in-dicates that 7 out of 10 Web visitors do not read the print magazine.

IMPACT: BY THE NuMBERS

Air America RadioAlaska Public Radio

Allentown Morning NewsAlterNet

American Urban RadioAnchorage Daily News

Arizona RepublicArlington Heights Daily Herald

Associated PressAssociation of Trial Lawyers of America

Atlanta Journal-ConstitutionBaltimore ChronicleBaltimore Sentinel

Best American Political Writing 2004Boise WeeklyBoston Globe

Boston PhoenixBradenton Herald

Buffalo NewsBusinessWeek

Campaign for America’s FutureCBS News

CBS Radio/ENN RadioCenter for American Progress

Charleston GazetteCharlotte Observer

Chattanooga Times Free PressChicago Tribune

Chico News & ReviewCirculation Management

City ViewCKNW

Cleveland Plain DealerCNN

CNNfn.comColumbia Journalism Review

Common CauseConnect for Kids

corrente.blogspot.comCourrier International

Court TVCox News ServiceCreators Syndicate

C-SPANDaily Hampshire Gazette

Daily NewsDaily Variety

Dallas Morning NewsDayton Daily News

Denver PostDesert Dispatch

Emerging Democratic MajorityFairfield County Weekly

Fairness & Accuracy in ReportingFederation of American Scientists

Financial Times (London)Florida Times-Union

Fort Wayne News-SentinelFree Press

Ft. Lauderdale Sun-Sentinel

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M O T H E R J O N E S A N D T H E F O U N D A T I O N F O R N A T I O N A L P R O G R E S S A N N U A L R E P O R T 2 0 0 4�

GOING BEYOND THE CHOIR

Mother Jones reaches well beyond these core readers and radio listeners. In 2004, we logged more than 84 million audience impressions through some of the nation’s most prestigious and broad-based media outlets. Our stories and related mentions of Mother Jones appeared in 132 newspa-pers and periodicals, and we generated 207 radio and televi-sion interviews with our editors and writers in 2004. Dozens of nonprofit organizations linked their members to a Moth-erJones.com story through their Web sites and email news-letters. (See previous page for the hard numbers.)

A NOTE ON RECOGNITION

Mother Jones has received four National Magazine Awards in its 29-year history, including a 2001 award for general excel-lence. Recent recognition includes Utne Magazine’s 2004 Independent Press Award for political coverage; Western Publications Association’s 2004 award for best overall pub-lication; and with Nina Berman the 2004 World Press Photo second prize award for story photography.

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January 2004: Nine months had passed since the first U.S. attack on Iraq, with no end of the fighting in sight. People across the political spectrum were

gearing up for a presidential election with unprec-edented potential to change the course of history. As we began 2004, the need for a truly inde-pendent media voice had never been more crucial for American democracy. But it was also clear that this year, the traditional role of a progressive magazine like Mother Jones would not be enough. With your support, we set out to find new ways to answer this question: How does a magazine make a difference?

IT STARTS WITH GOOD JOuRNALISM

Solid, informative, accurate reporting is what Mother Jones is known for–and in each issue of the maga-

zine in 2004, readers could count on finding in-depth inves-tigations that the commercial media either failed to report or buried in the back pages.

Robert Dreyfuss and Jason Vest’s “The Lie Fac-tory,” (January/February 2004) for example, detailed how only weeks after 9/11, the Bush administration set up a secret Pentagon unit to create the case for invading Iraq–and told the inside story on the disinformation and bogus intelligence that led the nation to war. Republi-can Sen. Pat Roberts, chair of the Senate intel-ligence committee, told the Wichita Eagle that he took “The Lie Factory” into account during his investigation of intelligence failures leading up to the Iraq invasion. Fellow Sen. Ted Ken-nedy quoted extensively from the report in his scathing critique of the Bush administration.

Months ahead of the rest of the media, CNN analyst Peter

HOW DOES A MAGAZINE MAKE A DIFFERENCE?

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Bergen’s “Backdraft” (July/August 2004) made the point that “what we’ve done in Iraq is what bin Laden could not have hoped for in his wildest dreams” by engaging in “the very type of imperial adventure” radical Islamists had “long predicted was the United States’ long-term goal in the region.” It was a story to which Sen. Barbara Boxer turned –it “best expresses,” she said, “my views and I believe the views of millions of Californians and Americans”–as she quizzed Condoleezza Rice during her confirmation hearings as the new sec-retary of state.

Matthew Brzezinski’s cover story for the Septem-ber/October 2004 issue, “Red Alert,” likewise reported on an underfunded, disorganized and strategically incoherent Department of Homeland Security– and revealed how vulnerable the United States really is to potential terrorist threats. Brzezinski’s radio interviews were heard by over four million listeners. NPR “Fresh Air” host Terry Gross liked the story so much that following her half hour in-terview with Brzezinski, she asked her next guest, conservative

Norman Podhoretz, if he’d read the story–and when he said he hadn’t, proceeded to tell him exactly what it said.

ARE WE BETTER OFF?

But we wanted to do more than top-quality re-porting. That’s why we turned Ronald Reagan’s question of almost a quarter-century before on its head, with the year-long Are We Better Off? project. We wanted to get the facts heard and used by opinion shapers and decision makers, by progressive activists and by millions of Ameri-cans looking for information they could count on.

We kicked off the Are We Better Off? project with the May/June 2004 “Who’s Better Off?: A Special Report on the State of the Union” special issue of Mother Jones. With contribu-tions from longtime New York Times columnist

Anthony Lewis, former Reagan administration official Clyde Prestowitz, and veteran writers Bill McKibben, David Good-

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and in the case of writer JoAnn Wypijewski, inside a New York City jail after she was caught in an NYPD sweep of

protestors and bystanders during the GOP con-vention.

THE MOTHER JONES POLL

We wanted to go deeper still into how Ameri-cans felt about the state of the union. In June 2004 we reported on the results of the first-ever Mother Jones poll, conducted by the firm of Greenberg Quinlan Rosner. Across the political spectrum, the poll found that a majority of the American people were dissatisfied with the cur-rent state of affairs and desperate for a signifi-cant change in direction.

In nearly every area of life, Americans believed that they and the nation were worse off than three years before. People saw a country deeply divided, an economy that benefited the wealthy and big corporations while leav-ing the middle class and American workers behind and a war

man, Dave Eggers, David Rieff and Arthur Allen, the issue examined what four years of the Bush administration meant for the economy, national security, civil liberties, health care, education and the environment. It wasn’t a pretty picture.

Simultaneously, MotherJones.com published the Mother Jones 100, a database that pro-vided readers and reporters an in-depth look at the major hard and soft money contributors to both political parties. We bundled the data with special reports from Chuck Lewis, founder of the nonpartisan Center for Public Integrity, Jodie Enda of the Cleveland Plain Dealer, and Mother Jones’ Washington correspondent, Michael Scherer.

In July and August, MotherJones.com sent a team of reporters and photographers to cover the Democratic and Republican conventions in Boston and New York. They provided on-site blogging, daily photo essays, and in-depth analysis from inside the convention halls, out on the streets

Stanley Greenberg discusses the Mother Jones poll findings

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M O T H E R J O N E S A N D T H E F O U N D A T I O N F O R N A T I O N A L P R O G R E S S A N N U A L R E P O R T 2 0 0 413

At that point, the campaign did not have time to step back and do what you did.

Unfortunately, I think the campaign made a misjudgment about the mood for change, which was reflected in their conven-tion. They devoted their whole campaign to re-assurance on security, without making the case for change or laying out Kerry’s vision for the future. In early August, I wrote a critical memo on this point–and the rest is history. The find-ings of the Mother Jones survey, which stood out from the conventional political survey, were part of the mix of thinking. They should have provided the spring board for a very effective convention.”

“CONvERSATIONS WITH CONSERvATIvES”

When we saw how well Clyde Prestowitz, a Mother Jones contributor to the “State of the Union” special issue and life-

that prevented the administration from addressing problems at home, and appeared increasingly difficult to win. The poll found that Americans were open to a candidate for the presi-dency who could articulate a message of change, security and hope. We published these findings online in June 2004 and, in collaboration with the Center for American Progress, presented them at a stand-ing-room-only briefing in Washington, D.C. When pollster Stanley Greenberg began advising the Kerry presidential campaign following the July 2004 Democratic convention, he commu-nicated the findings of our poll to the campaign staff as part of his larger case for changing the campaign’s message. About the impact the Mother Jones poll had, Greenberg wrote:

“That poll, more than any other we did or saw, un-derscored that people saw little progress for the country…. I presented the findings of the poll directly to the lead Kerry team… so I know that its impact was immediate and direct…

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long Republican, did in front of a live audience at a June 2004 Mother Jones fundraiser in Chicago, we knew it was important to find him a bigger platform. We wanted to share Prestowitz’s dynamic personality and insights on foreign policy, and saw an opportunity to position Mother Jones in a new light–a lefty magazine and a conservative believer. The idea bore fruit later in the summer when Mother Jones publisher Jay Harris met two film-makers–Stuart Sender and Julie Bergman Sender.

The Senders’ film, “Conversations with Conser-vatives”, featured interviews with four prominent conservatives–John Dean, Peter Peterson, Russell Train, and Clyde Prestowitz–speaking out against the radical right-wing agenda of the Bush admin-istration. After we made the film available online, it got picked up by organizations and Web sites across the political spectrum. This first recent foray into video production demonstrated the po-tential of a new media platform for Mother Jones.

ELECTION PROTECTION AND A COMEDY EvENT

Mother Jones joined with Working Assets and a broad national coalition of nonprofit organizations to encourage

people to volunteer as election precinct moni-tors around the country. In San Francisco, Mother Jones helped produce an “election protection” rally and concert at Yerba Buena Gardens that recruited over 600 volunteers to act as indepen-dent poll watchers during the November election. And as election season swung into full gear in September, Mother Jones presented the “State of the Union” comedy event at New York City’s Town Hall in the days following the Republican convention. The “State of the Union” event featured the brilliant political comedy of Jane-ane Garofalo, Will Durst, Lizz Winstead and a great crew of others. Funds raised from the event helped defray the costs of a gathering of inde-pendent media organizations in early 2005.

Clyde Prestowitz speaking at a Mother Jones event

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MOTHER JONES ON THE RADIO?

In 2004, there was no better example of the dismal state of American media than on the radio. So in April 2004, when the Air America Radio Network launched the first progressive AM network of its kind, Mother Jones immediately understood the importance of beginning a solid partnership. From the begin-ning, our staff and writers were regularly inter-viewed on air. Within months, we began pro-ducing the Mother Jones Minute, a weekly radio commentary that gave listeners a small slice of the investigative reporting and poignant com-mentary they could expect from Mother Jones.

In 2004, we planted the seeds for a more ex-tensive partnership with Air America Radio, which bore fruit in mid-2005 with the premiere of “Mother Jones Radio,” now heard around the country every Sunday.

THE MEDIA CONSORTIuM

If there was one story that surfaced in 2004, it was how “the media” jumped to an A-level issue for a broad spectrum of the

American public. Prompted by a wave of corpo-rate consolidation of the commercial media, the battle over changes in FCC rules that would have permitted even greater concentration and by dis-satisfaction over coverage of the war in Iraq, these forces all came to a head during the 2004 presi-dential campaign with the rise of the blogosphere, “Rather-Gate,” and the growing dominance of Fox News. But there’s more to the story than just election year politics. The way in which people get and use the news is changing. Blogs, podcasting, video blogs, MeetUps: we’re in the middle of a transformation of the media and how information gets organized and distributed.

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The questions for independent media organizations like Mother Jones are profound: How do we reaffirm the crucial role of the press as the watchdog of democracy? How do we not only adapt to these changes, but figure out how to be effective in what promises to be a time of great turbulence? How do we better understand the new opportunities as well as the next threats, especially as a new generation, with new media habits, comes of age?

In early 2004, Mother Jones began talking about this, and the idea of convening a meeting of our colleagues in the in-dependent media community following the November 2004 presidential election. We raised this idea with staff at The Nation and The American Prospect, who likewise thought we needed to evaluate the role we had all played during the election campaign season and think strategically about how to enhance our impact in the future. The election’s outcome only reinforced our belief that we needed to talk together. By the end of 2004, we were making plans for a meeting in early 2005 to do just that.

THANk YOu

For nearly thirty years, Mother Jones has remained fiercely independent and unhindered by corporate control. That’s why we’re able give you the hard-hitting, truth-telling, muckraking reporting we’re known for. We’re here because of the steadfast support of individuals like you who know that our reporting can help drive the progressive change we’d like to see in our world.

In 2004, you gave us the capacity to reach a wider audi-ence and make a difference. But if the 2004 election proved anything, it’s that we need to be more ambitious still. With your continued support we will carry out the greatest lesson learned this year: millions of American people are looking for authentically independent journalism. Mother Jones can help meet that need.

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Laurie Abraham Anatomy of a Whistleblower

Arthur Allen Whose Hospital Is It?

Peter Bergen Backdraft

Photographs by Nina Berman & Text by Verlyn Klinkenborg:

The Damage Done

Matthew Brzezinski Red Alert

David Case The Crude Doctrine

Eleanor Cooney The Way It Was

Mark Dowie Gods and Monsters

Robert Dreyfuss & Jason Vest The Lie Factory

Daniel Duane Meadow’s End

Lou Dubose Justice DeLayed

Al Franken Tearaway Burkas and Tinplate Menorahs

Todd Gitlin The Great Media Breakdown

Tim Golden The Longest Arm of the Law

David Goodman Class Dismissed

David Goodman Breaking Ranks

Joshua Hammer From Militant to Moderate

Photographs by Tim Hetherington & Text by Daniel Bergner:

Soldiers in a Forgotten War

Jack Hitt The Diddly Awards

Adam Hochschild Against All Odds

Maggie Jones The New Yankees

Maggie Jones Migrants No More

Anthony Lewis One Liberty at a Time

Bill McKibben In Search of Common Ground

Bill McKibben One Roof at a Time

Susan Orenstein Trial by Fury

Clyde Prestowitz Losing Friends & Alienating People

Photographs by Asim Rafiqui & Text by J. Malcolm Garcia:

Frontier Justice

David Rieff The End of Empire

Paul Roberts Over a Barrel

Andrea Rock Toxic Tipping Point

Michael Scherer Contracts with America

Michael Scherer Crossing the Lines

Samantha M. Shapiro The New Ward Heelers

Gail Sheehy Transforming Teresa

Dashka Slater keepers of a Lost Language

Julia Whitty Smuggling Hope

Ted Williams For a Week’s Worth of Gas

INDEX TO FEATURE STORIES PUBLISHED IN 2004 BY AUTHOR

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In a year during which the news was dominated by the November presidential election, and in which the media itself became a news story, more people continued to look to Mother Jones for high-quality, in-depth investigative reporting. As a result, paid readership in 2004 increased to 250,563, while traffic to MotherJones.com increased to an average of 300,000 unique visitors a month.

This growth in readership, along with the generous support of Mother Jones’ donor community, resulted in a 22 per-cent increase in total revenues, from $7.3 million in 2003 to $8.9 million in 2004. Subscription and newsstand revenues increased to almost $3.3 million dollars in 2004 (an increase of over $1.1 million), while contributed revenues increased by 21 percent to $3.5 million. Advertising revenue also posted an increase over the previous year, to $1.2 million.

Mother Jones spent $9.2 million in 2004. Of this total, about 76 percent, or $6.9 million, went to program-related purposes including investigative reporting in print and on-

FIN

ANC

IALS

line, membership and outreach, research and editorial ef-forts, education and support of our internship program and manufacturing and distribution. Approximately 24 percent of total expenses went to Mother Jones supporting services, including administration, fundraising and advertising.

In 2004, Mother Jones made a $300,000 investment in new subscriber acquisition, which resulted in a short-term net operating loss for the year. This investment will be paid back over the next several years in the form of increased subscriber revenues and donor contributions. The net liabili-ties shown on the 2004 balance sheet reflect future copies of Mother Jones magazine yet to be delivered to subscribers. What appears on paper to be a gap between assets and li-abilities is actually a promise on our part to continue deliver-ing Mother Jones’ award-winning investigative reporting in the years to come.

FINANCIAL REPORT FOR FISCAL YEAR 2004

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ASSETS Current assets: Cash and cash equivalents $320,629Accounts receivable $912,746Prepaid expenses $147,832Total Current Assets $1,381,207 Fixed assets (net of depreciation) $218,499Other assets $30,261

TOTAL ASSETS $1,629,967

LIABILITIES AND NET ASSETS Current liabilities: Accounts payable & accrued expenses $868,064Accrued payable $209,055Accrued vacation/severance/bonus $403,399Other Current Liabilities 0Subscription Liabilities $787,567Total Current Liabilities $2,268,085Long-term subscription liabilities $1,181,875

TOTAL LIABILITIES $3,449,960

NET ASSETS Deficit in unrestricted net assets: Operating ($2,294,984)Board designated $92,562

Total deficit in unrestricted net assets ($2,202,422)Temporarily restricted net assets $382,429Net assets ($1,819,993)

TOTAL LIABILITIES AND NET ASSETS $1,629,967

This summary of financial information has been extracted from the audited financial statements of the Foundation for National Progress on which an independent public accounting firm expresses an unqualified opinion. Copies of the complete audit may be obtained upon request.

STATEMENT OF ACTIVITIES: For the Year Ended December 31, 2004

Change in net assets $38,000Net assets at beginning of year ($1,858,463)

NET ASSETS AT END OF YEAR ($1,819,993)

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STATEMENT OF ACTIVITIES: For the Year Ended December 31, 2004

TOTAL REvENuES AND SuPPORT $8,885,000

Grants and Contributions$4,259,000

Subscription/Newsstand Sales$3,291,000

Advertising$1,191,000

Other$61,000

Merchandising$41,000

Sponsorship and Events$23,000

Royalties & Syndication$17,000

Digital Income$2,000

TOTAL EXPENSES $9,202,000

Development$996,000

Outreach$267,000

Merchandising$34,000

Events$76,000

Digital$875,000

Other$54,000

Editorial and Art$2,334,000

Manufacturingand Distribution

$1,326,000

Administration$410,000

Circulation$2,084,000

Advertising$746,000

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Publishers Circle $10,000 +

AnonymousJanis E. AdamsCharles J. AinslieAlbert A. List FoundationThe Arca FoundationJanet A. BoyleJane W. ButcherGruber Family FoundationIrving Harris FoundationAdam HochschildLannan FoundationRob McKaySara Senior O’ConnellPark FoundationRotasa FoundationNan SchafferSteve SilbersteinThe Ted Snowdon FoundationJennifer & Ted StanleyJudy Wise & Sheldon BaskinWorking Assets Grantmaking Fund of Tides Foundation National Affairs Council $5,000 - $9,999

Anonymous (3)Peter & Lucy AscoliElspeth G. BobbsLois M. De DomenicoDavid GlasscoThe Kadima FoundationMarilyn Jones & Mitchell KaplanEd & Deborah Jeanne Kleinow

Lisa W. KroeberThe Libra FoundationJohn D. & Catherine T. MacArthur FoundationGrace Allen NewtonBeverly Brazier NounKathy PillsburyChristina PlattMark A. RobillardJohn A. SimmonsThomson von SteinAnn McCall Wyman Leadership Gifts Society $1,500-$4,999

Anonymous (4)Jody AliesanAspen Business Center Foundation/McBride FamilyE. A. ChivingtonAlan CohnCompton Foundation, Inc.Cheryl Forté Louise & Jim FrankelHobart G. GuionBetty S. Hoffenberg for the Sidney Stern Memorial TrustJames C. HormelHurst FoundationJohn HenryLorna Brett HowardChris IrvinJody A. KaplanKatz Family FoundationHenry P. Kendall FoundationElliot LehmanKen & Lucy Lehman

Deborah & Scott LinkeSimon & June LiMatthew Loschen FamilyStuart MayerMaura Morey&rew S. MorrisonKenneth F. MountcastleHilary Perkins & Skip BattleThe Sandler Family Supporting FoundationGuy & Jeanine SapersteinBill & Abby SchmellingJulia M. StaschJohn & Augusta Stewart

Hellraisers $480-$1499

Anonymous (14)Drexel AgnerHarriet S. BarlowMarjorie Craig BentonAnita BieseGene BirminghamRichard T. BlackbirdSuzanne BlueMeredith Bluhm-WolfBarbara BossonJoan Catherine BraunKathleen BrodineJudd & Mary Anne BrownMs. Percy BrowningScott J. BuginasBarbara BurnimSharon CampbellDavid CoxMichelle CzosnekJanet DavisonDr. Jim Duggins

James EhlenDouglas T. EricksonAudrey EvansRichard W. FarrellJeri Smith FornaraRichard D. FreemonMary GamaCaroline GardnerKelly GheenVeva J. GibbardDavid & Betsy GiffordJudith A. GoldAdelaide Park GomerEric GreenbergLumina GreenwayRichard GurmanLillian Y. HayesThe Heller FamilyDeirdre H. HendersonTed HessCathy HillenbrandSara S. HinckleyDoug HowellLindsay HumpalJohn R. HunterMarjorie ImmonenJane Marcher FoundationShirley JohnsonDavid Cay Johnston & Jennifer LeonardChristopher Keyser & Susan SprungMichael KieschnickDorsie R. Kovacs D.V.M.Patrick LannanJane A. LapinskiEllen R. LaschiverPeter Lehman

CONTRIBUTORS AND SUPPORTERS 2004

Eduardo Jose MaglioneMs. Ira Polcyn McEvoyPatrisha McLeanJane & Dennis MeyerShayle MillerRobert A. MoeserHarle G. MontgomerySigward MoserUlla NeuburgerJoel NiggMark NorthHelene ParcesepeRoland H. Pesch & Kathleen A. RosskophFrances S. PetrocelliPiper JaffraySandra PressmanPaula RantzN. ReshotkoResponse Management TechnologiesKerry Anne RidleyRod RinellFrank RooseveltCarol SalmansonSteven R. SchildSchwab Fund for Charitable GivingLinda E. ShostakKevin SimmonsJames C. SpirrisonRonna StammNancy StephensDiana StorkFred StrickhouserJim Struve & Jeff BellDavid TaylorJack Theimer

Mike ThollHarold V. ThompsonCatherine TislarDr. Patricia Tuck & Dr. Geni BennettsC. Wagenvoord, Jr.Debbie WeeterBernice WeissbourdNancy & Christian WernerJim & Mary WhiteLeslie WilburRobin T. WinklerThe Winky Foundation Alicia P. Wittink

Muckrakers $250 - $479

Anonymous (2)Sue AddissNick AllenAdolph AlmquistAnna Louise Reynolds Fund of Triangle Community FoundationJohn B. AshbaughOlivia AtchersonDaniel AultAlec BabiarzBarbara BakerFord BallantyneMiriam BarberenaPatrick BarnettLaura BarrettKathy BeckBarbara BellRudolf A. BergmannMichele BevisRichard BirmeleDavid W. Bishop

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Jack BlockDr. Harold & Ruth BlumensteinElisabeth BondyDavid BotelloG. C. BraffordDonna Branch-GilbyDonna BriskinJerome BrookmanMarjory BrooksCheryll BrownJane BrubakerRobert Burns, MDRay H. BurtonKaren ByrnePatricia CaldwellLyndsay CampbellElaine CapenOtis CarneyJudith H. CasaleKevin CassadyLouis CinquinoRobert ClarkeP. CodyM. CohenJames A. CollinsNoel ComessSusannah ConverySarah J. CooneyH. R. CortAndrew CrowleyKate CulverJames B. DanielsJudith DavidsonLynn R. DavisStewart DavisAlice DayJudith A. DelmarHarold DemarestWilliam G. Dempsey

Giovanna DevenyMike DixonBridget K. DonohuePatricia DoughertyJohn L. DurrJack EdelmanRichard EhrenbergDeirdre EnglishMary F. EricksenDonald ErskineDavid FarrellStuart FeenK. FergusonFidelity Investments Charitable Gift Fund Joan FlaniganNicole J. FlissBeverly O. FordMimi FrankelMolly J. FranksLyn FrasierPatricia FriebertClaudia GallWayne GershAaron GibsonRobert I. GilbertTerri GladdenKenneth GoertzPhyllis GoldR. GoldsteinGreater Des Moines Community FoundationJerome A. GrossmanBarbara GuthrieEly HaimowitzMargaret HallNicholas HartToni HaunMichael Haymes

Merrily R. HelgesonSabina HirshmanMinfong HoDavid K. HoffmanAllison HoltzGeorge HowtonDavid HugginsMaxine JewettBarbara JohnsonCyrus JohnsonLois JosephStephen KaufmanJack KellerDavid J. KellyJames KennedyJeanie KilgourKatharine KingRhoda KittelsenThomas B. KnoedlerAnthony KodisPaul KraskaCharles A. KromerEster LabayEvelyn J. LandgrafRichard LangCarl A. LarrickMark LarsonRuth A. LarsonJames T. LauClinton LauberKarl LealCatharina D. LesterM. A. LesterSharona A. LevyKaren L. LewMichael A. LheureuxRichard LightmanMichael LiljaDaniel Lopez

A. LutzRandy LynchPamela LyonsJohn MacNeilleMadden AssociatesKerry MadiganScott MarcusWally MarksMartha MartinMarilyn MasonJeffrey MayersohnTed MaysKelly McClellandJohn McGradyDesmond F. McLaughlinBarbara J. MeislinJack L. MelamedPhyllis Fine MenkenMicrosoft Matching Gifts ProgramCaryle B. MillerEd MinerMarjorie MinotRobert MittenbuhlerLois V. MonganCharles MooneDaniel MoosStacy MosherGeorge MossDimity MuellerScott M. MurrayCamillo MusumeciErik NashI. N. NedsBrande NeeseAlbert P. NeilsonMike PaglieroniJames PalmerQuintin Papineau

Marte ParhamC. PawleyEd PivcevichSandy PolishukMurray PotterRichard PowellJean A. PowersProgressive ContractingLindi RamsdenJohn B. RayRealNetworks FoundationBenjamin RhodesMike RifenCarol J. RigmarkPaul RomanoJoseph H. RousePaul & Suzanne RubensteinJames RupertMark & Barbara SafranekSarah SalzbergRebecca SandrettoJohn M. ScanlanAndrew J. SchlewitzS. M. SchlieppJuliet K. SharrockBrigid SheaWilliam P. ShermanRichard SimmondsDiane M. SimonJ. SinningT. SlavikLeslie SmithPamela SmithBetsy SnyderV. B. SodiniMarsha SofferSamuel G. SolittJustin SouthwickBruce Spangler

CONTRIBUTORS AND SUPPORTERS 2004

Keith StangerBruce D. StarkWilbur StensonRobert StewartElizabeth StikisFrank A. StiversCarl SufallRoselyne C. SwigGilbert TauckWayne TerrellJudith L. TharpJudy ThompsonMelvin A. TraylorDavid TudorRobert O. TylerSolveiga UngerWilliam R. VolavkaLea WaltersJane WaltonKevin WandDavid WardenPhilip F. WarnerE. Weber WeinsteinMichael WedellJoan WelkEvan WhiteSally WilliamsBarry WinerTheodore WinsbergR. WitneyGuy WolfJanice & Peter WoodDaphne Zaras

Space limitations prevent us from listing the more than 30,000 people who contributed to Mother Jones in 2004. To all of our friends and supporters, thank you!

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STAFFFor the period from January 1, 2004 through December 31, 2004

Jay HarrisPublisher

Roger CohnEditor-in-Chief (until Oct. 2004)

Mother Jones magazine

Monika BauerleinSenior Editor

Tim DickinsonArticles Editor

David GilsonResearch Editor

Clara JefferyDeputy Editor

Susan LakeCopy Editor (until May 2004)

Alastair PaulinManaging Editor

Rina PaltaAssistant to the Editor-in-Chief

MotherJones.com

Will TacyEditor - MotherJones.com(until July 2004)

Julian BrookesAssistant Editor – MotherJones.com(until November 2004)Editor - MotherJones.com

Ed HomichProduct Manager

Tom OcampoMarketplace Manager

Laura ShapiroWeb Designer

Robert WiseWebmaster

Interns & FellowsJeff FleischerTucker FoehlNonna GorilovskayaLiv LeaderDavid MoislBradford PlumerOnnesha Roychoudhuri

Jonathan RabinovitzInvestigative Editor(until September 2004)

Michael SchererWashington Correspondent

Christine SheridanCopy Editor

Debbie YoonAssistant to the Editor-in-Chief(until November 2004)

Interns & FellowsAlex CarpKatherine CheneyMeghann FarnsworthElizabeth GettelmanAnthony HaJennifer HahnBenjamin LeslieMichal Lumsden Kari LundgrenMatteen MokallaJanelle NanosRina PaltaAmelia RagusoWasim SalfitiEva Steele-SaccioJulie Varughese

Elsa WenzelDeborah Ziff

Art Department

Jane PalecekCreative Director

Sarah kehoePhoto Editor

George McCalmanArt Director

Susan ScandrettArt Director (until April 2004)

Interns & FellowsMaggie PerkinsChloe Sherman

Manufacturing & Distribution

Justin NealProduction Manager

Yuki TessitoreAssistant Production Manager

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STAFFFor the period from January 1, 2004 through December 31, 2004

Advertising

Eric WeissAssociate PublisherSales, Marketing & Business Development

Eileen EllisAdvertising Manager

Chris JerveyAdvertising Account Executive

Molly MuellerAdvertising Sales Coordinator

Yuki TessitoreAdvertising Operations Manager

Interns & FellowsJessica BigarelKhary Brown

Marketing

Micah BerekMarketing Manager (until August 2004)

Jayne SalingerMarketing Manager

Tracy TreuCustomer Service Representative

Dilini WeerasooriyaFellow

Development & Communications

Steven katzAssociate PublisherCommunications & Fundraising

Lily Bartlett AboodDevelopment Assistant(until June 2004)Stewardship & Information Systems Manager

Laurin AsdalSenior Major Gifts Officer

Deborah JanesSenior Major Gifts Officer

Mariana MartinezStewardship & Information Systems Manager(until June 2004)

Richard ReynoldsCommunications Director

Laura WeissbeinDevelopment Assistant

Interns & FellowsGillian CrozierAdrienne Neff

Administration

Madeleine BuckinghamChief Financial & Administrative Officer

Peter MeredithResearch Assistant

Scott MorreyIT Manager

Emma PierceHuman Resources Manager

Becky van HorsenOffice Manager

Maysoun WazwazReceptionist

Elizabeth MauldinFellow

Accounting

Myna ChiemController

Anna DuarteAccounting Assistant

Eric FranklinBilling Manager

kevin MedfordFinancial Analyst

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Jane ButcherBoulder, ColoradoCo-chair

Rob MckaySan Francisco, CaliforniaCo-chair

Sally O’ConnellStuart, FloridaSecretary

Christina PlattBerkeley, CaliforniaTreasurer

Harriet BarlowMinneapolis, Minnesota

Julian BrookesSan Francisco, CaliforniaStaff Representative

Roger CohnSan Francisco, CaliforniaVice President

Judith GoldChicago, Illinois

Jay HarrisSan Francisco, CaliforniaPresident

Adam HochschildSan Francisco, California

Beverly NounTarpon Springs, Florida

Emma PierceSan Francisco, CaliforniaStaff Representative

Anita Roddick(on sabbatical)

Chichester, England

Stephen SilbersteinBelvedere, California

John SimmonsChicago, Illinois

Alicia WittinkWashington, D.C.

Emeritus Board

Peter BarnesMarjorie Craig BentonJoan Catherine Braun Russell BuddDr. Price CobbsRon DellumsChristina DesserJeri Smith FornaraRob GlaserDanny GoldbergVictor GotbaumCal JoyAl MeyerhoffSusan Bay NimoyDavid OlsenAndy PatrickTom PetersRabbi John RosoveChara SchreyerJulia StaschRose StyronJohn TirmanMark TukmanJudy WiseMike Woo

BOARD OF DIRECTORSFor the period from January 1, 2004 through December 31, 2004

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Your support of the “Mother Jones Investigative Fund” keeps Mother Jones free of corporate influence and empowers us to produce investigative journalism that influences policy and impacts the public debate.

Hellraisers

Donors join this steadfast group of supporters by making annual gifts of $480 or more to help Mother Jones fear-lessly speak truth to power. Hellraisers receive advance cop-ies of Mother Jones before the issue hits the newsstands, as well as recognition in our annual report. Membership in the Leadership Gifts Society and National Affairs Council is offered to donors who make annual gifts at the $1,500 and $5,000 level, and entitles them to a wide range of benefits.

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GUIDE TO COVER TIMELINE

January 2004Robert Dreyfuss and Jason Vest’s “The Lie Factory” exposes how, only weeks after 9/11, the Bush administration set up a secret Pentagon unit to create the case for invading Iraq.

March 2004Nina Berman’s photographs of maimed soldiers returning home from Iraq published. Berman later named a winner in 2004 World Press Photo competition.

May 2004 “Who’s Better Off?: A Special

Report on the State of the Union” published in the May/June issue

of Mother Jones.

June 2004The Mother Jones Poll shows that beneath the partisan divide, America is discontented and des-perate for change – and will vote for a candidate who articulates messages of hope and security.

August 2004Gail Sheehy is interviewed on

CNN and MSNBC following publication of “Transforming

Teresa,” her look at Teresa Heinz Kerry in the July/August issue of

Mother Jones.

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September 2004 Matthew Brzezinski’s “Red Alert” in the September/October issue of Mother Jones shows how the Department of Homeland Security has been sidelined by the admin-istration’s obsession with Iraq.

September 2004 Janeane Garofalo, Will Durst and other terrific comedians perform

a post-convention evening of political comedy before a sold-out

Town Hall in New York City, pro-duced by Mother Jones.

October 2004Mother Jones hosts investigative reporter Seymour Hersh speaking to a full house at Boston’s historic Faneuil Hall on military abuse at Iraq’s Abu Ghraib prison.

November 2004Senator John Kerry loses toPresident George W. Bush.

December 2004David Goodman’s “Breaking Ranks” in the November/De-cember issue of Mother Jones reports on the growing number of U.S. soldiers who are speaking out against the war in Iraq.

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222 Sutter Street, 6th floorSan Francisco, CA 94108

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Many thanks to the photographers and artists

who allowed us include their work in this annual

report: Holly Lindem, Nina Berman, Craig Cut-

ler, kenji Toma, Ruth Marten, Joseph Rafferty,

Jeff Reidel and Robert vanderbei.

annual report design: Steven Lyons

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