By Rachel McCarthy

At The Milestone Foundation, everything we do begins with a simple but powerful idea: plaintiff funding should be a resource and a benefit, not a harm, to plaintiffs. That belief is the reason we chose to be a nonprofit organization—and it continues to guide how we serve the legal community every day. 

What It Means to Be a Nonprofit 

The Milestone Foundation is a 501c3 public charity, incorporated in New York State. We are the only nonprofit in the consumer litigation funding industry.  

Being a nonprofit means that our organization exists to advance a mission rather than generate profits for owners or shareholders. Any funds we receive—whether through repaid advances, donations, grants, or partnerships—are reinvested directly into our programs, services, and initiatives. 

For The Milestone Foundation, this structure ensures that every dollar supports the people we care about most: plaintiffs. It creates accountability, transparency, and a deep sense of responsibility to the communities we serve. 

Why We Chose the Nonprofit Path 

The decision to become a nonprofit wasn’t just a legal or financial one—it was a reflection of         our values. 

We recognized early on that the consumer litigation funding industry is not plaintiff friendly. Traditional funding companies charge high interest rates that can leave a plaintiff depleted once they finally receive their settlement. The priority of the traditional pre-settlement funding industry is making money, not helping to keep plaintiffs stable while they go through litigation.  

But our origination was also designed as an experiment: can a nonprofit organization make it in the consumer litigation funding industry? Is it possible to provide plaintiff funding at low-cost? Is there an appetite for this among the civil justice community? Would trial lawyers show up and support this type of nonprofit?  

Ten years later, the answer to these questions is YES.  

The challenges we aim to address require long-term commitment, trust, and collaboration. A nonprofit model allows us to: 

• Focus entirely on impact rather than revenue generation 

• Build trust with donors, partners, plaintiffs, and the legal community 

• Access funding opportunities like grants and charitable contributions 

• Operate with transparency, ensuring stakeholders know how resources are used 

Most importantly, it keeps us aligned with our mission of fair funding. 

How the Nonprofit Model Works for Plaintiffs

The Milestone Foundation delivers fair pricing because its nonprofit structure changes the fundamental economics of litigation funding. Here is how the model works in practice — and why it consistently costs less.

The Recycled Capital Cycle

When a case settles, the plaintiff repays the advance plus the agreed simple interest. In a for-profit model, that repayment goes to investors and shareholders. At The Milestone Foundation, every dollar of repaid capital flows back into the fund to support new plaintiffs. This recycled capital model means the same pool of money can serve multiple plaintiffs over time, reducing the need to charge high rates to attract external investment.

Simple Interest, Not Compounding

Most for-profit funders charge interest that compounds monthly or quarterly. At a 5% monthly compounding rate, a $10,000 advance can grow to $17,958 in just 12 months. The Milestone Foundation charges 15% simple annual interest on pre-settlement funding. On that same $10,000 advance over 12 months, the total repayment is $11,500 — a savings of nearly $6,500. The interest never compounds, never accelerates, and never surprises. Compare the costs to see how much your clients could save.

The Donor-Fueled Advantage

The Milestone Foundation benefits from three revenue sources that for-profit funders lack: philanthropic contributions, Cy Pres awards, and grants. These funds reduce the organization’s cost of capital. When combined with recycled principal and zero shareholder profit requirements, the result is sustainably low interest rates that a for-profit entity cannot match.

Non-Recourse by Design

Every funding agreement at The Milestone Foundation is non-recourse: if the plaintiff loses the case, they owe nothing. The nonprofit structure reinforces this promise because there are no shareholder demands for repayment. The risk of loss is absorbed by the nonprofit’s capital pool rather than passed on to plaintiffs through higher rates or hidden fees.

Why It Matters 

Choosing to be a nonprofit shapes everything about The Milestone Foundation—from how we make decisions to how we measure success. 

It means: 

• Putting people before profit 

• Staying committed to long-term industry change 

• Building relationships rooted in trust 

• Being a leader in the consumer litigation funding industry 

• Ensuring that impact, not income, defines our success 

Looking Ahead 

As we continue to grow, our nonprofit identity will remain at the heart of everything we do. It’s not just a designation—it’s a commitment to serve with integrity, compassion, and purpose.  

The Milestone Foundation is proud to be a nonprofit organization, and we are grateful for everyone who helps make our mission possible.