What are cy pres awards?

Class Action attorneys negotiating settlement or litigating the remedy in their actions must often address the probability that not all class members will be located, or that defendant's conduct has made full restitution to all injured victims impossible or infeasible. Under such circumstances, the courts may approve a charitable donation out of unclaimed residue of class action funds, or a direct grant in lieu of damages to any entity that will vindicate class member rights in the future. This approach avoids a windfall to the defendant and serves the deterrent goals of civil rights laws. The cy pres or "next best use" doctrine operates much like donor advised contributions. The settlement or judgment specifies the specific types of cases or activities that the funds should be used for. For example, cy pres awards can be administered to support housing, privacy and discrimination cases.

To obtain more information about this doctrine, please visit our Litigation Articles.

Why The Impact Fund?

The Impact Fund is an appropriate recipient of cy pres awards because we are an established non-profit foundation, with a track record in administering funds, making grants (approved by a Board of Advisors made up of highly respected and diverse public interest attorneys) and preparing yearly reports of our activities. Because of our broad priorities (civil rights, poverty and environmental justice) we can administer funds targeted to support a wide range of activities. Finally, with our low overhead, we can ensure an efficient and cost-effective administration of the funds.