New York Times today looks at magazines run by non-profit organizations. One segment of the story really stood out.
AARP the Magazine bills itself as the “world’s largest circulation magazine,” and it is true by a wide margin because of the expanding base of boomer readers. Six times a year, the magazine is shipped to 22 million homes representing 37 million AARP members. They receive the magazine as part of their $12.50 annual membership, which also gets them a regular bulletin.
AARP, according to the financial statements of its parent organization, increased advertising revenue by 37 percent, to $106 million, in 2005, from $77.6 million in 2003. Just as important, the magazine plays a central role in promoting AARP and affiliated products like insurance, from which the organization makes $300 million a year in royalties. Then there is $84 million in federal and other grants, as well as $55 million in contributions.
That $545 million in “non-profit.”