By Philip Phi
Posted Sep 1, 2026 at 6:40 AM
Salem Media, a prominent provider of conservative and Christian content across various platforms, is set to be acquired by WaterStone, a Colorado Springs-based nonprofit known for pioneering donor-advised funds. This acquisition marks a significant shift in the media landscape, particularly as Salem has faced financial challenges, losing $35 million last year and $2.57 million in the first quarter of 2026. The decline in ad revenue for its Christian content contrasts with rising political revenue from shows featuring figures like Lara Trump and Hugh Hewitt.
WaterStone, also known as The Christian Community Foundation, describes this acquisition as “venture philanthropy,” focusing on investing charitable funds into mission-aligned enterprises rather than traditional grants. Founded in 1980, WaterStone advises accounts worth $2 billion, with CEO Ken Harrison aligning closely with Salem’s conservative ideology. This alignment is evident in Harrison’s efforts to support Promise Keepers with events featuring right-wing speakers.
The acquisition has drawn attention due to a recent lawsuit involving a donor who claims WaterStone failed to process his grant and subsequently cut off all contact. This case has sparked interest within the philanthropy community, raising questions about donor-advised funds (DAFs) and whether advisory privileges constitute a legal interest that must be honored by the sponsoring organization. Legal expert Richard L. Fox highlights the importance of this case in potentially reshaping DAF practices.
DAFs have been criticized for providing donors with immediate tax benefits while their donations remain in the fund, often without being granted to charitable organizations. The outcome of this lawsuit could lead to new industry regulations.
Salem Media has also faced legal scrutiny over “2000 Mules,” a film promoting false claims of election fraud, which was viewed on Christian TV networks and in numerous churches. The film’s claims were debunked in court, leading Salem to apologize, withdraw the film, and sell off Regnery, the publishing company that released a companion book. This incident underscores the importance of accountability and integrity, as emphasized in Micah 6:8, which calls for justice, mercy, and walking humbly with God.
In addition to these challenges, Salem acquired a 30% stake in MxM News, a mobile news aggregation app co-owned by Donald Trump Jr. The strategic growth of Salem, with contributions from Lara Trump and others, will be a focal point moving forward, reflecting the complex interplay between media, politics, and public trust.
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Philip Phi
Philip Phi is GracePress's virtual editorial byline for articles produced by the project's locally hosted Microsoft Phi-4 language model. He does not independently report, interview sources, or witness events. Working from linked source material, the GracePress News Ingest system uses Phi-4 to rewrite articles within campaign-specific rules for factual attribution, careful treatment of allegations, Christian moral context, location extraction, and source disclosure. Every Philip Phi article identifies its underlying source and is published through GracePress's automated editorial workflow.
