David Chase’s comment about program-related investment jogged my memory about the Vermont L3C statue, which became law last year. It’s a form of incorporation — Vermont is the first state to have it, but you can operate in any state and be incorporated in Vermont. It was crafted specifically to permit directors of the corporate to operate with a social mission **ahead** of profit, and yet still be a profit-making, stock company. Significantly, it includes language designed to make L3C’s a safe investment for foundations seeking program-related investments with a “social rate of return.” DavidW — This is a model I want us to look at Dec. 3-5 in Missouri at the “Blueprinting the Information Valet Economy,” gathering, because it might be an appropriate corporate form for the Information Valet Project (see http://www.ivpblueprint.org). Some months ago I talked to the attorney in Vermont who, as I recall, wrote the language in the Vermont L3C statute and has been promoting it.

Here are some links:
http://www.drm.com/news/thomas_h:_moody_addresses_utah_philanthropists_regarding_vermont_l3c_act
http://www.drm.com/business_law/l3c_-_low-profit_limited_liability_companies

http://www.nonprofitsassistancefund.org/blog/2008/05/12/where-for-profit-and-nonprofit-meet/

Kate Barr: “This language was carefully developed to qualify these new entities to receive investments from foundations through Program Related Investments.

http://www.sec.state.vt.us/corps/dobiz/llc/llc_l3c.htm

(I should identify myself as the author of this comment: Bill Densmore, densmorew@rjionline.org)

And the conact information for the lawyer in Vermont:
Tom Moody
Downs Rachlin Martin PLLC
Burlington, VT
802-846-8316 (direct)
802-734-8316 (cell)
tmoody@drm.com

I have spent a lot of time (as a volunteer) doing fundraising for non-profits and I am now running a profitable hyper local site (www.sunvalleyonline.com) and making sales calls. The funny thing is that in either situation (non-profit or for-profit news org), you have to regularly go asking for money from either philanthropists or advertisers. I wouldn’t say it’s any easier asking for a donation than it is asking for an ad order.

While we’ve eked out a profit, we put in place a new sales approach ~10 days ago and are seeing terrific results. The difference is that we’ve doggedly and urgently honed our sales approach since we aren’t depending on donor largesse and it looks like we’ve hit the mark (despite the economy, we’re blowing away our targets). Figuring out a sustainably revenue model strikes me as much more sustainable than a non-profit model and not any more difficult than developing and regularly running fundraising campaigns as a non-profit which isn’t a walk in the park.

David – I think you and OJR would do a great service if you dug into the notion of Mission Related Investing as it applied to this world as opposed to the charity angle. I could put you in touch with at least one foundation head that is doing this sort of thing. Thanks to you and the OJR for this series — very thought provoking.

Loss of privacy is the primary concern people have with social mapping and other location-based services. While many people try to build a firewall between their real lives and their anonymized on-line personalities, it will be impossible to maintain that separation should they start using location-based services; anonymity becomes thin when your cell phone tells you that you are standing three feet away from “citygirl105″. Knowing someone’s location is a two-way street, and if users want to reap the benefits of finding out where other people are, they will also be forced to share their own locations. People will know where you are, for better or for worse. Parents may embrace systems that track their teenage driver’s location but they should be prepared for the day when that same system, which perhaps their company uses to help coordinate team members that are flying to a convention in another city, can also be used by their boss to follow their movements when they call in sick. (Did you really stay in bed all day…?). ”

The world as the interface