The other part of the story is about L3Cs, which are a type of “low-profit” LLC that has a charitable mission. It also qualifies as a PRI for foundations.

This essentially means that if Bill Gates is giving his blessing to PRIs, he is also, by extension, doing the same for L3Cs. And that could mean that 2010 will become the year when L3Cs really start to gain momentum.

Although the $400 million program-related investments fund is dwarfed by the $3.5 billion in grants made annually by the Gates Foundation, the fact that the world’s largest foundation is dipping its big toe into the world of venture philanthropy may accelerate a nascent trend in philanthropy.

So, what is venture philanthropy, and how do program-related investments play a key role in it? The phrase “venture philanthropy” was coined in the 1960s as an alternative strategy to merely having foundations write grant checks and hope the recipients (usually public charities) would use the money wisely. The concept is borrowed from venture capital, and uses loans and equity investments along with ongoing management and strategic assistance as a way to help the recipient organizations become self-sufficient.

In my opinion, the $400 million commitment to program-related investments by the world’s largest foundation supported by the two wealthiest men in the world – Bill Gates and Warren Buffett – should be just the kick in the pants needed to bring program-related investments into the mainstream of foundation philanthropy.

View a previously written post by Mouli Cohen about philanthropy

The business described in the article by Mickey Meece is basically a modified taxi service, but uses a fold-up scooter as the main element in the equation. Companies like Scooter Patrol of Sunset Beach, California, City Scoot in Louisville Kentucky, and Y Drive LA in Los Angeles, have developed for-profit business models designed on the platform of service and safety.

Once ordered, a designated driver arrives on a fold-up scooter, places it in the caller’s trunk, and drives the individual(s) home. When finished, the driver hops on the scooter and heads to the next destination. In many ways, it’s a smarter alternative to traditional taxi services as well, because people who utilize the service don’t need to worry about getting their vehicles the next day.

This is business model appeals to me because of its inherent aim of helping the community. Sure, these businesses are money-making entities, but whatever helps to keep the streets safe ends up being a positive force in any community. Furthermore, now that liquor has the legal right to advertise on television, both beer and liquor producers are signing on as sponsors for some of the services, providing much needed capital for the businesses to expand.

According to the Atlanta sober-scooter service, Zingo, “what this industry needs is a national brand.” Whatever that brand ends up being, rest assured the streets will be safer.

[image via Bixentro]