In-kind Support

 

Some nonprofit publishers enjoy in-kind contributions (whether explicit and implicit) from academic institutions, sponsors, and other organizations. Most in-kind contributions come from the institutions, societies, and other organizations with which a publication or project is affiliated. Well over one-half of open-access journals receive some level of in-kind university support and almost one-fifth receive some support from one or more learned or professional societies.

In-kind support can assume many forms, including office space and facilities, administrative support, student labor, development/fundraising support, and/or the provision of faculty time (from a host institution); voluntary labor (from the social network for the journal’s discipline); digital conversion, formatting, and metadata tagging (from an institution’s library); free or discounted computers, equipment, and software licenses (from a host institution or corporate sponsor); digital archiving (from national libraries and nonprofit initiatives); and online publishing technology and hosting services (from a host institution or publishing partner). These in-kind contributions effectively offset costs that would otherwise be incurred by the publisher, lowering the cost hurdle that must be cleared to sustain a journal financially.

As with other forms of subsidies, a journal’s business model should explicitly account for in-kind contributions. This is necessary to:

  • provide a basis for demonstrating the return that the journal delivers to the contributor (often measured in terms of reputation-building or social value), in order to help ensure the continuity of the contribution; and

  • allow an accurate understanding of potential replacement costs in the event the in-kind support is withdrawn.

The detail and sophistication of this accounting will depend on the type and scale of the in-kind contribution(s) that the journal receives, and on the nature of the publisher’s relationship with the contributor.

In-kind subsidies require resources to administer and maintain, just as self-generated income models do. Ideally, the terms of significant in-kind arrangements should be explicitly articulated and agreed to by the journal and the contributing entity. A publisher should recognize implicit in-kind arrangements, even those of long-standing, as financial risks and should develop contingency plans in the event of their discontinuation. Sustaining a journal over time requires that the publisher continues to demonstrate the value being delivered to in-kind contributors, even though this value may be self-evident to the publisher.

When commenting on this page, please detail your experience with the model in question. The comment area is moderated and reserved for evidence- or experience-based discussion and requests for support in experimenting with different approaches.

Comments

2 comment(s) on this page. Add your own comment below.

Nov 10, 2009 10:51am [ 1 ]

I suppose that this model is the closest to that which enables the publication of Information Research, although it is difficult to imagine an accounting process that would cover it. Papers are managed through OJS, supported by Lund University Libraries (publisher of DOAJ), and published on a server supported by Lund. So we have institutional subsidy - without direct payment to the journal publisher, on which basis it can presumably be termed 'support in kind'. Editorial work is divided between the Editor and Associate Editors, using OJS to process the papers - their work is supported by their institutions, which, again, is support in kind. Copy-editing is also voluntary and, hence, support in kind. Final preparation of the papers is undertaken by the Editor, with occasional help from one Associate Editor - the latter is supported in this by his institution, the Editor is retired and undertakes the work voluntarily.

In all cases, the only return anyone receives is the satisfaction of helping the OA effort in the field and the further satisfaction of seeing the journal become accepted as one of the leading journals in its field. Increasing the journal's reputation adds to the participants' reputations. But what kind of accounting would report this? Given the vagaries of measures such as Impact Factors, that will hardly do.

Raym Crow
Nov 12, 2009 2:20pm [ 2 ]

Dear Tom,

Thank you for your comment on the SPARC income model web resource page. As you note, it can be difficult to account for in-kind support in a traditional financial statement. Sometimes this support should be quantified and accounted for explicitly; for example, if the support is substantial (however that might be defined by a given publisher) and a donor's commitment is tentative, it may be prudent to determine the replacement cost in the event that the in-kind support were withdrawn. This would provide a basis for assessing the types of income models that might be appropriate for covering the replacement costs.

In other instances--such as the one you describe for Information Research--the in-kind support comes from a coherent network of mission-driven contributors. The level of commitment is high, and the risk that any one contributor will withdraw support is low. In such a case, there's little need--after the fact--to quantify the value of the services provided. However, publishers seeking to replicate your model need to ensure that the interests of any providers of in-kind support are adequately served (for example, either by mission alignment or market ROI, in the event of sponsorships). We will add Information Research to the income model overview as an example of a well-aligned in-kind support network.

Again, thanks for your comment.

Best regards, Raym

Add a Comment

(Use Markdown for formatting.)

This question helps prevent spam:

Income models menu

Other resources for publishers:

Bookmark and Share