Where the relationship works best is when an organisation realises a newspaper genuinely wants to showcase and praise their community. Just as there is a hunger for information for "bad" events, there is also a hunger for successes and praiseworthy situations. At least, this is the attitude I have for the Times-Age.
Schools are a particular example of this. Wairarapa is slightly unusual, in my experience, of having a marketing person preparing material for certain schools. This relationship works well, in that we get to praise good work and the schools get to look energetic and progressive. But frankly, I welcome calls from schools or boards. Every editor knows a cohort of smiling school kids in the paper means a few more retail sales from relatives.
With organisations like police, government departments and district health boards, the tension is much, much higher.
Schools latch on quickly to a newspaper willing to publish good stories, but other organisations prefer to stay well clear. The demarcation builds up and becomes an imbalance, because if one side never talks about the good things, other people are quick to talk about the bad.