Eugene Weekly raises over $100,000 through community support one week after embezzlement scam

Eugene Weekly, the alternative newspaper that just last week announced it had stopped printing and was laying off its staff after falling victim to an alleged embezzlement scheme, could be making a comeback.

An avalanche of donations over the past week, both from readers in Eugene and from newspaper supporters across the country, has added up to more than $100,000 so far, leading EW managers to suggest they could get back to printing again before the end of January.

If so, it would mark a swift turnaround for the publication, which announced on Dec. 28 that there would be no weekly Thursday paper and the entire 10-member staff was out of a job.

First established in 1982, the paper has been a community staple, consistently publishing 30,000 copies every Thursday, which are distributed for free around town. EW managers estimate that EW has lost between $100,000 and $200,000 due to a former employee's alleged embezzlement and mismanagement of the paper's funds. An investigation is ongoing and the extent of the losses are still unknown.

No criminal charges have been filed but EW has been working with Eugene police after filing an investigation in mid-December. Neither the paper nor the police have released the identities of any suspects. The paper also has a team of private forensic accountants analyzing their books and accounts, managers say.

$100,000 raised in one week

Despite a bleak end of 2023, the new year has already breathed new life into the alternative paper.

According to the GoFundMe, there have been over 1,000 separate donations, totaling $73,000 as of Friday morning. Added to the funds donated through the EW website, Mortensen said they have raised over $100,000.

"I'm so blown away," Mortensen said, noting that the money had come both from large-dollar donors and from smaller-dollar contributions. "It just makes me want to cry."

Mortensen said she has received hundreds of messages and comments in support of the paper, ranging from diehard EW readers to those who "don't agree with their politics" but still wish to see the paper bounce back.

Managers plan to use the money to start paying back the company's debts, rehire staff and work to publish a print product. Despite being considered "former employees" due to the forced layoffs, EW staff have still been coming into the office and posting some content to its online site, Mortensen said.

While $100,000 puts a significant dent in the issue, EW is not out of the woods yet. The current GoFundMe goal is set to $188,000, which managers say is the estimated amount needed to get the paper out of enough debt to get back on track.

Mortensen said she's hoping to get a print product out by the end of January.

National support

Since the announcement of the financial situation, articles on EW have been published in the New York Times, Washington Post and Associated Press.

Its GoFundMe now features donations with notes about reading those articles and sending support from California, Washington, Arizona, Louisiana, Virginia and more.

Mortensen said she'd even received messages from people in France.

"Small, independent media or weekly papers, I think, are just something that really resonates with people," Mortensen said. "As people are more and more aware of the loss or the redemption newsrooms, maybe they're starting to realize what they're what they're losing."

In Eugene, other local businesses have rallied behind EW.

Local restaurant Tacovore held a fundraiser for EW on Thursday evening. Old Nick's Pub is holding a benefit concert to raise funds on Jan. 12.

Emily Chappell, owner of Old Nick's, has thrown dozens of benefits over the years after receiving community support when diagnosed with cancer. Chappell, a personal friend of Mortensen, said she reached out and offered to host a benefit.

When she announced the event, Chappell received a huge amount of interest from community members, volunteer entertainers and artists. Chappell is still finalizing the lineup of comedians, musicians and DJs, but said she received more volunteers than they could accommodate.

"Obviously, they've touched a lot of people, and everyone was eager to be a part," Chappell said.

In addition to entertainment, there will be an art auction and raffle. Chappell said they've received paintings, photographs, gift certificates and more to put toward the cause.

Chappell said she is still trying to decide what hours the benefit concert will run, although a tentative date was set for Friday, Jan. 12, from 6 p.m. to 2 a.m. There would be no set cover charge, with attendees asked to pay what they can to support EW.

"The Eugene Weekly, they're just such a core part of Eugene, they're a community newspaper, they're run by our friends and neighbors," Chappell said. "It's just vital that we keep that weekly newsletter around because it's part of Eugene's heart and soul.

"I think we'd really be losing a chunk of ourselves if we lost it."

What does the newspaper mean?

As a way to help raise funds, EW reporter Emerson Brady has started working on a documentary to show what the paper means to the community.

Brady, who has been with the paper since June, has been interviewing a diverse crowd of community members, such as EW readers, business owners, local officials and artists.

"Getting to revisit people that I've talked to, it's kind of a reminder of why I fell into this in the first place," Brady said. "And it's just reminded me of how much Eugene Weekly has impacted this community. It's been very heartwarming."

Brady said the plan is to finish the documentary in the next couple of weeks. Once posted and shared via social media, it could help spread the news and reach a broader audience.

The Eugene Weekly is a valuable voice in the community, said Brent Walth, an associate professor at the University of Oregon School of Journalism and Communication and longtime journalist and Pulitzer Prize winner who worked previously for publications like the Register-Guard, the Oregonian and the Willamette Weekly.

"Every community needs multiple voices when it comes to covering the news," Walth said. "An alternative weekly plays a special role in holding power on account of the community but also helping (by) making sure that the stories that go uncovered by other media can get attention."

Walth said EW has helped fill in coverage gaps as other outlets have cut down their staffing or completely disappeared over the years.

"It looks as if the Weekly is (going to) fight on and survive this, and I think that's good for everyone," Walth said. "I think it's good for the Guard. I think it's good for KLCC. It's good for all of the news outlets in the community."

The EW also offers significant support to UO SOJC students looking to break into the news industry, publishing student stories and accepting interns through programs such as the Catalyst Journalism Project.

"The Eugene Weekly has been our best partner, our most productive partner," Walth said. "(It) has continued to be a watchdog and a voice for the community, as well as the most valuable news outlet when it comes to helping UO journalism students publish stories of real consequence."

To donate to the EW or find out more, visit support.eugeneweekly.com/. EW also has a GoFundMe set up, which can be found at www.gofundme.com/f/save-eugene-weekly.

Miranda Cyr reports on education for The Register-Guard. You can contact her at mcyr@registerguard.com or find her on Twitter @mirandabcyr.

This article originally appeared on Register-Guard: Eugene Weekly raises over $100,000 one week after revealing financial crisis