CCPF and Cy Pres

Administering Legal Settlements

The California Consumer Protection Foundation (CCPF) has a twenty year track record administering consumer trust funds through a cost effective, transparent, and accountable process. We have the expertise in finding the nexus with the underlying issue of a legal settlement and the connections to identify the nonprofit organizations that will maximize the value of the awards.  Our award process is competitive and fair, with professional oversight and customized reporting provided to attorneys and the court.

How does CCPF administer cy pres?

Step 1: Develop a research-based funding strategy

Our first step is to develop a funding strategy to address the underlying issues of the legal settlements. Through our twenty year history, we have created strong connections with experts and advocates in a range of consumer related issues, including health care, auto sales, consumer fraud, privacy, finance, insurance, energy, and telecommunications, and we rely on their research and advice (click here for a list of our advisors). We then determine what are not only the “next best” but the best use of the funds to protect and benefit consumer interests (click here for examples of this through our current and past trust funds).

Step 2: Promote the availability of funds through outreach and marketing

Once the funding strategy is determined, we then create a tailored outreach and marketing plan to ensure that eligible nonprofit organizations have the ability to apply for awards. We have an extensive network of organizations, community leaders, and advocates. In addition, our staff is constantly “on the road” promoting grant opportunities and makes a concerted effort to find organizations representing underserved communities.

Step 3: Conduct a competitive, fair review

Our application process is extremely easy and we offer technical assistance to ensure that small, but deserving organizations can compete with the established nonprofits. During the application and grant review process, priority is given to:

  • Organizations actively involved in the communities that were harmed under the settlement.
  • Projects and applicants that have a high probability of leveraging an award to attract additional funds or other resources that will significantly increase its impact.
  • Organizations serving particularly underserved communities.
  • Programs that utilize best practices, replicable models, sustainable designs and creative approaches.

Step 4: Ensure professional and ethical governance

We have an independent board of directors made up of professionals from the legal and foundation world with specific experience in consumer issues who review and approve all grants with settlement funds. In addition, we have a strict conflict of interest policy to preclude making grants to organizations affiliated with board or staff.

Step 5: Evaluate for results and accountability

The Foundation requires reports from grantees and conducts evaluations on the impact of grants. In addition, we maintain reporting systems to respond to specific monitoring requirements of the court.

If you are interested supporting our work, click here to find out how.