If a newspaper were classified as a non-profit group they would have to watch their editorials. I think this would be the start of leading to the government dicatating what a reporter can & can't report. While this may sound like a good idea for the newspapers, I think it will lead to something very bad. Before you know it, the government will have their hand in the radio waves & TV more so than they already do, only it will start leaking into the news.
I am not crazy about the newspapers because of the extreme liberal bias they have. They are almost as bad as NBC. Even our local paper, The Mobile Press Register has a liberal slant on their stories. However, if that does go through, then the press will have one less freedom. They will be reporting what the government tells them to report.
Churches are considered non-profit. If they get involved in political issues, then they loose their non-profit status. The exact same thing would happen with the newspapers if they didn't comply after being listed as non-profit.