The newspaper industry is in a bad spot. Actually, run a correction on that statement — newspapers are in a “time to panic” spot. The business model is collapsing, ad dollars are disappearing, newsprint prices are at a 12-year high and the Internet is just giving news away for free. On July 2, the Los Angeles Times announced it was cutting more than one-sixth of its newsroom staff; the Tampa Tribune said it would cut 20%.

Enter Pro Publica, a non-profit news organization devoted solely to investigative journalism and funded to the tune of $10 million a year by California-based philanthropists Herb and Marion Sandler. With a staff of 18 journalists (10 additional reporters have yet to begin), the group hopes to release their stories for free through exclusive deals with major media outlets such as the New York Times, The Atlantic and 60 Minutes, among other potential partners. On June 22, its first major story — about Al Hurra, a U.S.-funded Middle Eastern TV network that has broadcast anti-American propaganda — aired in conjunction with the famed CBS news program. Such an approach has already been criticized…