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Unclaimed settlement funds in a class action lawsuit should not revert to the defendant who caused the harm. Cy pres awards allow attorneys to direct leftover funds toward nonprofit organizations that protect consumer rights and advance access to justice. This ensures every dollar of a settlement serves its intended purpose.

Designate The Milestone Foundation as your cy pres recipient today and ensure unclaimed settlement funds support fair, nonprofit litigation funding for plaintiffs nationwide.

Learning the rules for these payouts is essential for any attorney who wants to maximize the impact of a class settlement. This guide covers what cy pres awards are, why they matter, and how you can designate a recipient that aligns with your case goals.

What Are Cy Pres Awards?

Cy pres awards are a way for courts to give leftover class action money to nonprofit groups. The term comes from an old French phrase, “cy pres comme possible,” which means “as close as possible.” This legal tool lets judges put money toward a cause that helps the class when giving it to people is not practical. You can find more detail on these awards at ClassAction.org.

The History of Cy Pres

The cy pres rule has deep roots in the law. It started in sixth-century Roman trust law to deal with gifts that could not be used as planned. In the United States, its use in class actions grew over time. The California Supreme Court backed the use of these awards in class cases in 1986, helping set the path for how courts across the country handle extra funds today.

When Cy Pres Applies

What causes a court to issue a cy pres award? There are three main triggers. First, class members may not cash their checks. Second, the sum per person may be too small to mail out. Third, money may be left over after all class members have been paid. In these cases, the court picks a nonprofit whose work matches the goals of the lawsuit, ensuring the funds still serve the public good.

How Awards Benefit the Public

These awards can reach into the millions of dollars. They are a strong fit for organizations like The Milestone Foundation that work to help people pursue justice. By directing these funds to a nonprofit, the court helps ensure the money stays focused on consumers, prevents funds from returning to the party that was sued, and maintains pressure for fair practices in the future.

Why Do Cy Pres Awards Matter for Plaintiff Attorneys?

Attorneys who lead class action cases hold a profound duty to their clients and the public. You must ensure that settlement funds serve the goals of the lawsuit. Choosing a cy pres recipient allows you to keep these funds working for the people your case aimed to help.

Protecting the Deterrent Value of Settlements

What happens when settlement funds go unclaimed? In many cases, the money might simply return to the defendant, weakening the legal impact of the litigation. Using cy pres awards prevents funds from reverting to the party that caused the harm, ensuring the defendant still pays the full price for their actions.

By naming a nonprofit, you keep the focus on justice. These awards help maintain the deterrent effect of your settlement and send a clear message that wrongful acts lead to real costs. This practice protects the integrity of the legal system and the class you represent.

Meeting Your Duty as Class Counsel

How does cy pres fit into your legal role? You have a fiduciary duty to act in the best interests of your clients, and this duty extends to how you handle residual funds. You must guide the court toward a choice that aligns with the case goals. Many attorneys use these awards to support groups that fight for consumer rights or worker safety.

The American Bar Association has analyzed many cases involving these awards. Their research shows that courts look closely at how recipients are chosen. You should select a group that shares a clear link with the case themes, helping you navigate legal hurdles while maximizing the benefit for your clients.

Advancing the Public Interest

Cy pres awards do more than close a case. They provide vital funding for groups that protect the public, often supporting work in fields like privacy, false advertising, and debt collection. By directing these awards, you help build a fairer system for all consumers.

Organizations like Public Justice have stewarded nearly 150 of these awards, using the money to take on significant legal fights. Your choice of a recipient can help organizations like this stay strong, ensuring the impact of your lawsuit lasts long after the final settlement is signed.

How Do Cy Pres Awards Support Access to Justice?

Cy pres awards support access to justice by turning unclaimed legal funds into low-cost help for plaintiffs. The Milestone Foundation uses these funds to provide non-recourse funding with low, simple interest rates. This nonprofit model ensures that settlement money goes to families in need rather than for-profit lenders.

The Role of Nonprofits in Fair Funding

As the nation’s first and only 501(c)(3) nonprofit consumer litigation funding organization, The Milestone Foundation operates with a mission-driven model that prioritizes helping plaintiffs over earning profits for shareholders. When attorneys partner with us, they help their clients access the financial support needed for daily living costs during litigation.

We have advanced more than $7 million to plaintiffs to help them pay for rent, food, and medical bills. This support allows people to wait for a fair case outcome rather than accepting low settlement offers due to financial desperation. Attorneys can designate TMF for cy pres awards when a case concludes with residual funds.

Lowering the Financial Burden for Plaintiffs

For-profit funding firms often charge high rates that can consume most of a plaintiff’s recovery. These firms use compound interest, meaning the debt grows faster with each passing month. The Milestone Foundation uses a simple interest model that stays consistent over time, charging 15% simple annual interest for pre-settlement funding and 10% for post-settlement funding. Interest never compounds, and there are no hidden fees.

Our funding is also non-recourse, meaning plaintiffs owe nothing if they lose their case. This structure protects people from financial harm following an adverse verdict. We now work with 320+ law firms across 34 states to provide this fair option. By deploying cy pres funds responsibly, we can keep these rates low and help more families access justice.

Why Your Cy Pres Choice Matters

Choosing a nonprofit for cy pres funds helps the legal system function as intended. When settlement checks go uncashed, that money should still help people who have faced similar harms. By sending these funds to a nonprofit like The Milestone Foundation, attorneys ensure the money stays within the legal community and supports access to justice.

We provide transparent reporting on how every dollar from these awards is used, making it easy for judges and class counsel to see the impact of their decision. Attorneys can also help clients apply for pre-settlement funding when they face financial pressure during litigation.

Comparing Nonprofit and For-Profit Litigation Funding

The choice of funder has a significant impact on what plaintiffs keep at the end of their case. The table below highlights the key differences.

Feature	Nonprofit Funding (TMF)	For-Profit Funding
Interest Type	Simple annual interest	Compound interest
Interest Rates	10% to 15%	36% to 200%+
Repayment Risk	Non-recourse	Non-recourse but high cost
Hidden Fees	No hidden fees	Common extra charges
Core Mission	Plaintiff access to justice	Maximize shareholder returns

How to Designate a Cy Pres Recipient: A Step-by-Step Guide

Attorneys play a vital role in ensuring settlement funds help the right people. When you have leftover funds in a class action, you can suggest a nonprofit to receive those funds. The Milestone Foundation is a strong choice because we provide fair funding to plaintiffs. Courts often approve cy pres awards for organizations that work for consumer justice.

The Settlement Negotiation Phase

You should begin discussing cy pres awards early, ideally during settlement talks. Choose an organization whose mission aligns with the goals of your case. For example, a consumer rights case should direct funds to a consumer protection organization. This alignment makes court approval more likely.

The Designation and Approval Process

Once you select a recipient, you must notify the court. Both sides in the case can suggest a recipient, but the judge has final approval authority. The judge evaluates whether the organization’s mission serves the class members’ interests. You can find additional details in the litigation funding FAQ. Here is the process you will follow:

1. Discuss with counsel. Raise the cy pres option with opposing counsel during settlement negotiations to establish mutual agreement.
2. Propose a qualifying nonprofit. Recommend The Milestone Foundation or another organization that aligns with the case goals.
3. Obtain court approval. The judge reviews the selection to confirm alignment with the case and charitable mission.
4. Deploy the funds. Upon court approval, the funds are transferred to the nonprofit to support plaintiffs in need.
5. Receive impact reporting. The Milestone Foundation provides transparent reporting on how the funds advance access to justice.

Transparency and Mission Alignment

A responsible recipient must demonstrate how it uses cy pres funds. The Milestone Foundation prioritizes transparency, using every dollar to provide low-cost support to plaintiffs. This follows the Public Justice model, where awards advance the public interest. Every dollar helps someone stay in their home or afford necessary medical care while their case proceeds.

What Types of Cases Generate Cy Pres Awards?

Cy pres awards appear in many types of class action lawsuits today. Courts use these awards when it is not feasible to pay every class member directly, often in cases with very large groups of plaintiffs where individual payouts would be uneconomical to distribute.

Consumer Protection and Privacy Violations

Cases involving consumer rights and digital privacy are common sources of cy pres awards. A single data breach or privacy incident can affect millions of people, making individual distributions cost-prohibitive. In these instances, a judge may designate a nonprofit focused on data safety or consumer law. The Supreme Court case Frank v. Gaos demonstrates how courts handle privacy settlements with cy pres components, ensuring funds protect the public from future digital harms.

Financial Fraud and Antitrust Cases

Securities fraud and antitrust cases also generate cy pres funds. These lawsuits target companies that deceive investors or collude to fix prices. When funds remain after all known claims are paid, they can support organizations that promote fair markets and business ethics. This approach ensures the money serves a beneficial purpose rather than returning to the wrongdoer, preserving the deterrent effect of the litigation.

Workers’ Rights and ERISA Claims

Wage and hour disputes often result in residual funds directed to nonprofits. The same applies to ERISA and other workers’ rights cases. When workers cannot be located after a thorough search, courts can award the remaining funds to a charitable organization. The Milestone Foundation provides nonprofit litigation funding for plaintiffs who face financial strain, allowing workers to pursue fair resolutions in their own legal cases.

Debt Collection and False Advertising

Attorneys also see cy pres awards in debt collection and false advertising lawsuits. Organizations like Public Justice have stewarded nearly 150 cy pres awards across these legal areas. When you designate a nonprofit like The Milestone Foundation, you support a mission of fairness and access to justice. We offer pre-settlement funding at 15% simple annual interest, with no compounding and no hidden fees, directly aligning with the goals of consumer protection and workers’ rights cases nationwide.

Designate The Milestone Foundation as your cy pres recipient and put unclaimed settlement funds to work for plaintiffs who need fair, nonprofit litigation funding.

Frequently Asked Questions

What types of legal cases are eligible for cy pres awards?

Cy pres awards apply to a wide range of class action lawsuits. Common examples include consumer safety, privacy violations, false advertising, and securities fraud. They also appear in cases involving workers’ rights and debt collection. According to Public Justice, these awards ensure extra funds support the public by directing them to groups that help people in situations similar to those of the class members.

Who has the legal authority to approve a cy pres recipient?

Any party in a class action lawsuit can suggest a specific nonprofit, but the court holds final approval authority. Attorneys typically propose a recipient during the settlement phase. The judge then evaluates whether the organization’s mission aligns with the interests of the class members. This process ensures residual funds do not return to the defendant and maintains the deterrent value of the lawsuit.

What happens to unclaimed settlement funds if no recipient is named?

If a settlement does not designate a recipient for residual funds, the money may revert to the defendant. This outcome is generally discouraged because it weakens the deterrent effect of the litigation. Some states require unclaimed funds to be sent to a state program instead. Choosing a nonprofit like The Milestone Foundation ensures the money supports access to justice for plaintiffs nationwide.

Is a cy pres award considered a charitable donation?

A cy pres award is a court-ordered distribution of residual settlement funds rather than a charitable gift. However, the funds must go to a nonprofit or similar organization whose mission aligns with the lawsuit. For example, The Milestone Foundation uses cy pres awards to provide fair, non-recourse funding for plaintiffs in need, helping them avoid high-interest lawsuit loans while their cases proceed.

How does The Milestone Foundation use cy pres awards?

The Milestone Foundation uses cy pres awards to fund its mission of providing affordable, non-recourse consumer litigation funding to plaintiffs. These funds directly support the organization’s ability to offer pre-settlement funding at 15% simple annual interest and post-settlement funding at 10% simple interest, with no compounding and no hidden fees. Every dollar is used to help plaintiffs cover living expenses, medical bills, and other essentials while they wait for their cases to resolve.

Ready to Designate The Milestone Foundation as Your Cy Pres Recipient?

If you are involved in a class action settlement with residual or unclaimed funds, consider designating The Milestone Foundation as your cy pres recipient. As the nation’s first and only 501(c)(3) nonprofit consumer litigation funding organization, we put settlement funds to work for the people who need them most: plaintiffs facing financial hardship while their cases move through the justice system.

Every dollar received through a cy pres award goes toward providing fair, non-recourse funding at simple interest rates of 15% pre-settlement and 10% post-settlement. No compounding. No hidden fees. Just transparent, mission-driven support for plaintiffs.

Contact us today to discuss how a cy pres designation can extend the impact of your class action settlement while supporting fair access to justice for plaintiffs nationwide.

Millions of dollars in class action settlements often remain undistributed after class members receive their payments. These residual funds offer a unique chance to support access to justice through nonprofit organizations.

Attorneys play a key role in choosing which groups receive these awards to help their clients. Understanding the specific legal terms and history behind this tool is the first step in using it well. What Does “Cy Pres” Mean? explains the origin and growth of this rule. The path begins with

What Does “Cy Pres” Mean?

Cy pres is a legal rule that lets a court move money from a trust or settlement to a new use. This happens when the first goal is no longer possible or not practical to meet. The phrase comes from the Old French term “cy pres comme possible,” which means “as near as possible.” In the legal world, people say it as “see-PRAY.”

The Roots of the Rule

The roots of this rule reach back to 6th-century Rome. Early Roman law used the rule for wills and gifts. When a person died and left money to a group that no longer existed, the court would step in. The judge would find a new group to get the funds. The new group had to have a goal that was very close to what the person first wanted.

Over time, this idea moved into English law and then into the United States court system. It serves as a tool to keep helpful money working for a good cause. Without this rule, funds might sit unused or go to the wrong place. Instead, the law ensures that the money still helps the public in a way that fits the first plan.

Legal Rules and Use Today

Today, the rule is a standard part of trust law across the country. Many states follow the rules set out in the Uniform Trust Code. Section 413 of this code explains how and when a court can change the terms of a trust. It requires the court to find a new use that is as near as possible to the first plan of the giver.

In modern law, courts often use this rule in class action cases. If a settlement has money left over after paying all people in the case, a judge may give that money to a nonprofit group. This often happens when it is too hard or costs too much to send small checks to many people. By giving to a nonprofit, the court ensures the funds still support the goals of the lawsuit.

Helping People Get Justice

Lawyers play a big role in this process by naming groups to get these awards. Choosing a nonprofit like The Milestone Foundation helps the money go back into the legal system. Our work gives fair funding to plaintiffs, which helps them stay in their fight for justice. You can see how this works on our Cy Pres Awards page.

When money goes to a group that fits the mission, it creates a big impact. It helps fund legal aid and other programs that protect consumers. For many lawyers, choosing these funds is a way to bridge the justice gap. It turns left over funds into a strong tool for social good.

How Does Cy Pres Work in Class Action Lawsuits?

The cy pres doctrine is a key tool for courts when class action settlement funds remain after the first payout. In many large cases, not all class members file a claim for their part of the money. In other cases, the payment amounts are so small that the cost to mail a check is more than the check is worth. When these extra funds exist, courts use the cy pres rule to send the money to nonprofit groups. These groups must serve a cause that is close to the goal of the original lawsuit.

Under this legal rule, the court makes sure the settlement funds still do good work. This process stops the money from going back to the company that was sued. It also supports groups that help the public. For lawyers, knowing how this works is vital for settlement talks and picking the right groups to receive the funds. You can find more detail on this in our funding FAQs for legal teams.

When Courts Use Cy Pres Awards

Two main things lead to a cy pres payout in a class action case. The first is when money is left over after all valid claims are paid. This often happens because class members move or do not see the notice. The second is when it is not smart to send tiny sums to a huge number of people. For example, mailing a five-cent check to ten million people would waste millions of dollars in costs. It is much better to give that money to a group that helps the whole class at once.

In these cases, the law lets the court find a new use for the money. This ensures the funds go to the public good. This rule is now part of the law in most states. Most courts follow the Uniform Trust Code Section 413. This code gives the rules for how to change the use of funds when the first goal is not possible to reach. This helps keep the funds working for a fair cause.

Legal Roots and Past Cases

The use of cy pres in class actions has deep roots in the law. A big change came in 1986 when the California Supreme Court gave its support to the practice. This ruling let courts send unclaimed funds to groups that help the class or the public. Since then, courts in every state have used this model. It has become a top way to fund legal aid and consumer help groups across the nation.

A well-known case for this rule is the Lane v. Facebook lawsuit. This case had a $9.5 million fund to settle claims about a web tool known as Beacon. It was hard to find and pay every person who was part of the case. So, the court let the extra money go to cy pres groups. Cases like this show how the rule turns extra funds into a force for good. Lawyers can help by naming groups like our cy pres awards program for attorneys to receive these funds.

How Courts Pick a Recipient

Courts take the task of picking a group very seriously. A judge must check the nonprofit group to make sure it fits the case. For example, a case about consumer rights should fund a group that protects or teaches buyers. The court also looks at where the group works and its past success. This check makes sure the money is spent in a wise way and helps the right people.

Lawyers for both sides often suggest groups during the settlement phase. This part of the work needs careful thought to meet all court rules. Counsel must show that the group has 501(c)(3) status. They must also show that its work will help the class in a real way. By picking a strong group, lawyers can make sure the settlement has a long and good effect on the world. This helps them do their job for the class and for the legal system as a whole.

Why Cy Pres Awards Support Access to Justice

Cy pres awards play a vital role in the legal system by bridging the justice gap. When class action cases have leftover funds, courts use this rule to direct money toward the public good. This process ensures that settlement money helps the group of people most affected by the case. By supporting nonprofit groups, these awards turn unclaimed cash into a force for fairness and consumer safety.

How cy pres funds legal aid

Most cy pres awards go to 501(c)(3) nonprofit groups that provide legal aid or consumer help. These groups often work on the front lines but lack the cash to meet every need. For example, Legal Services Alabama helped save over $18.2 million for residents in 2024. They reached this goal through many funding sources. This includes cy pres awards that support their work to help low-income families.

Groups like the State Bar of California Justice Gap Fund also rely on these awards. According to the State Bar of California, these funds support legal aid groups that serve people who cannot pay for a lawyer. Without this help, many people would face legal tests alone. Cy pres awards give the steady funds needed to keep these vital legal services open.

The role of plaintiff support groups

Access to justice is not just about having a lawyer in court. It is also about making sure plaintiffs can survive the long wait for a fair result. Many people feel forced to settle their cases early for low amounts. They do this because they cannot pay for basic needs. The Milestone Foundation solves this as the only 501(c)(3) nonprofit consumer litigation funder in the United States. We give an ethical choice over for-profit lenders who often charge high rates.

When courts name our foundation for a cy pres award, the impact is clear. These funds let us offer pre-settlement advances at 15% simple interest. As a nonprofit, our goal is to help plaintiffs avoid debt while they seek justice. Our non-recourse model means that if a plaintiff loses their case, they owe us nothing. This setup fits the goal of cy pres to protect and help consumers.

Improving fairness in the legal market

The consumer litigation funding market is a big industry. Many for-profit firms serve this space. But their high interest rates can eat up a large part of a final award. Cy pres awards help shift this balance. They support nonprofit models that put the client’s financial health first. By funding groups that offer simple interest and clear terms, courts help make the legal process more fair for all.

Supporting access to justice through these awards creates a strong effect. It lets legal aid groups take on more cases. It also gives plaintiffs the room they need to wait for a just result. When lawyers pick a nonprofit for leftover funds, they make sure the case leaves a lasting public benefit. This ethical choice helps build a more open and fair legal system for everyone.

How Nonprofits Qualify as Cy Pres Recipients

Courts use a strict set of rules to choose a nonprofit for cy pres awards. To qualify, a group must be a 501(c)(3) charity and have a mission that fits the case. The goal is to make sure the money helps the people who were hurt in the lawsuit even if they do not get the funds directly.

Core Rules for Court Approval

Most judges look for three main things when they pick a group. First, the group must have official 501(c)(3) status with the IRS. Second, the group must show they can handle the funds well. Finally, the court looks for a strong link between the group’s work and the legal issues in the case.

For example, if a case involves consumer fraud, the court may choose a group that works on consumer rights. This follows the legal rule to find a use that is as near as possible to the original intent of the settlement. Based on the Legal Information Institute at Cornell Law School, this doctrine helps prevent funds from going back to the defendant.

Mission Fit and National Reach

A good fit is not just about what the group does. It is also about where they do it. If a class action is national, the court often wants a group with national reach. If the case is local to one state, the judge may pick a local legal aid office. The cy pres funds must serve the class members in a way that makes sense for their needs.

The Milestone Foundation fits this need for cases involving consumer rights and personal injury. We are a 501(c)(3) group that helps people nationwide. You can find attorney partner facts on our site to see how we fit your firm’s goals.

Factor	Court Rule	TMF Match
Tax Status	501(c)(3) non-profit	Only non-profit litigation funder
Mission	Consumer or legal aid focus	Direct support for consumer plaintiffs
Reach	Matches the class scope	National reach across 34 states
Ethics	Clear financial reporting	Simple interest with no hidden fees
Impact	Direct benefit to class	Funds pay for plaintiff living costs

A Unique Nonprofit Funding Model

As the only 501(c)(3) non-profit consumer litigation funder in the US, we are a unique choice for cy pres awards. Our mission is to ensure that financial stress does not force people to settle for less than they deserve. This goal fits the aim of many consumer protection class actions.

Our simple interest model makes us a good fit for class actions that aim to protect consumers from high costs. Unlike for-profit firms that charge high rates, we keep costs low. This means more of the settlement stays with the plaintiff. When a court chooses us for a cy pres award, they support a model that puts people before profits.

Lawyers who want to support access to justice can join Partners for Justice to see how we help. We provide pre-settlement advances at 15% simple interest. This helps plaintiffs stay in their homes and pay bills while they wait for a fair outcome in court.

What Is the Difference Between Cy Pres and Traditional Donations?

Cy pres awards and usual charity gifts both support nonprofit goals, but they differ in how they start and get approval. A cy pres award is a court-ordered payout of left-over funds from a class action case. A usual gift is a willing donation from a person or a firm. Both paths help groups like The Milestone Foundation, but cy pres must meet a tight legal rule of mission fit with the first lawsuit.

Willing Gifts vs. Court-Ordered Awards

The main split lies in where the money comes from and why it is given. Usual gifts come from donors who choose to give their own cash to a cause they like. These gifts are often at will and can happen at any time. Donors might give to help a big goal or a small task within a group.

By contrast, cy pres awards come from money left in a class action payout. This happens when it is not easy to pay every class member. It also occurs when the cost of sending small checks is too high. A judge must sign off on the award to ensure it helps the “next best” group of people. Based on data from Cornell Law School, the court uses this rule to keep funds from going back to a party that broke the law.

The Rule of Mission Match

When you give a direct gift, you can pick any 501(c)(3) group. But cy pres awards have a unique rule for mission match. The group must do work that relates to the first lawsuit. This comes from the phrase “cy pres comme possible,” which means “as near as possible.” The goal is to help the people hurt by the acts in the case.

For example, a case about buyer fraud should fund a group that helps buyers. This rule is often cited by groups like the State Bar of California to show how awards reach the right people. Law firms often look for a “category of one” partner like The Milestone Foundation. Our Cy Pres Awards page shows how our work for fair funding fits many buyer and injury cases.

Key Facts for Attorneys to Know

Attorneys must know these points when they name a group in a payout. Cy pres is not just a gift. It is a way to ensure a case meets its full goal. These awards often provide much larger sums than small gifts, allowing groups to grow fast. This helps us offer simple rates that are far lower than the trade norm. Here are the core gaps between these two types of funding:

• Source of funds: Usual gifts are private cash, while cy pres uses unclaimed payout funds.
• Approval path: A donor decides on a gift, but a judge must sign off on a cy pres award.
• Legal rule: Direct gifts are open, but cy pres must match the case as near as possible.
• Timing: Gifts can be one-time or often, while cy pres depends on the end of a case.
• Public record: Cy pres awards are often part of public court files and class notes.
• Group status: Both require the group to have 501(c)(3) status for tax and legal reasons.
• Tax impact: Donors get a tax break for gifts, but cy pres awards settle a court debt.

By picking a group that fits the case, law firms help their clients and the public at the same time. This model makes sure that no payout money goes to waste when people need help. Cy pres is a smart tool for justice that makes a lasting impact.

How Can Attorneys Designate The Milestone Foundation for Cy Pres Awards?

Attorneys play a key role in making sure left-over funds go to a good cause. When a class action settlement leaves money behind, you can suggest a recipient. The Milestone Foundation is a top choice for cases about consumer rights or legal access. As the only 501(c)(3) nonprofit consumer litigation funder in the United States, we help people get fair treatment. You can follow these steps to name us in your next settlement.

Find Good Cases

First, look for class actions where it is hard to give every cent to the class. This often happens when the class is very large. It also happens when payouts are too small to mail. In these cases, the court may look for a nonprofit to get the left-over money. You should check if the case topic fits our mission. If the case is about financial fairness or legal access, why our nonprofit model matters will be clear to the court.

Talk to the Court

Once you find a good case, tell the other lawyers and the judge about your plan. You must show that the recipient is a 501(c)(3) group that helps people. The cy pres doctrine at Cornell Law explains that the gift should be “as near as possible” to the first intent. We meet this bar by giving non-recourse funding to people in need. You can also say that we work with over 430 law firms to help their clients.

1. Pick a case with extra funds. Look for settlements where money will remain after all class members get their pay.
2. Check the mission fit. Confirm that the case matches our focus on consumer protection and access to the justice system.
3. Tell all parties. Share your plan to name The Milestone Foundation with other lawyers and the court early in the process.
4. Use our official details. List us as The Milestone Foundation, a 501(c)(3) nonprofit, and use our Tax ID number 81-1207829.
5. Write it into the deal. Put the name right into the final settlement paper so the judge can approve the award.

Finish the Award

Is your firm ready to lead the way in fair funding? You can designate The Milestone Foundation for your cy pres awards to help us reach more families. We use these funds to offer pre-settlement advances at a low simple interest rate. This helps people avoid high-cost “lawsuit loans” that can hurt their case. Your choice to name us helps keep the legal system fair for all.

Frequently Asked Questions

What happens to unclaimed money in a class action?

When a class action ends, some people might not claim their share of the payout. Sometimes the money left over is too small to send to everyone fairly. In these cases, a judge can use the cy pres rule to give the cash to a charity group. This group should do work that helps the same type of people who were part of the case. This keeps the money from going back to the firm that was sued.

Are cy pres awards controversial?

Some people do not like these awards because the money does not go to the victims. They argue that the cash should go back to the class members or stay with the firm. However, most courts feel that giving the money to a good cause is better than letting a wrongdoer keep it. Judges check each group to make sure their work matches the goals of the case. This helps to make sure the funds support justice for all.

Who can receive cy pres awards?

Only certain groups can get these funds. Most of the time, the group must be a 501(c)(3) nonprofit that helps the public. The court looks for a match between the work of the group and the facts of the lawsuit. For instance, if a case was about consumer rights, the money might go to a group that helps people with legal needs. Groups like The Milestone Foundation often qualify because they support fair legal funding.

Can cy pres funds be used for any purpose?

No, the law says the funds must go to a goal that is “as near as possible” to the first intent of the case. This rule is part of the Uniform Trust Code followed by many states. Courts must check that the money will help the right people in a way that is fair. If the first goal is not possible, the judge picks a new one that is very close.

Will you support access to justice with your next cy pres award?

Unclaimed class action funds often go back to large firms or just stay unused while legal needs grow fast across the whole country right now. By choosing a nonprofit group today, you ensure that this extra money serves the public good and helps the many people who need it most. Your choice allows us to provide low-cost funding to plaintiffs who are fighting for fair settlements and protects many families from heavy money stress today.

Are you ready to help families get the fair care they need right now? Please visit our cy pres awards page to contact us. You can designate The Milestone Foundation for your cy pres awards right away.