Where are the Non-Profit Law Firms and How do they Thrive? March 18, 2017 Bruce Wiener, JD Executive Director Boulder Bridge to Justice David McNeill, PhD, MBA Assistant Director, Open Legal Services Lee A. DiFilippo, JD Founder, DiFilippo Holistic Law Center Elizabeth Burnett, JD Staff Attorney, Sustainable Economies Law Center

Introduction Who are you? Why nonprofit law firm When started Where What type of law Current status How many attorneys How many clients/cases Biggest current challenge

The ABA has said that the legal needs of the middle 70 % of society are largely not being met because they can’t afford services. That, to me, feels like a call to 501c3 nonprofits to emerge, step up, and start to fill that gap by serving moderate income clients.

A lot people think it will be easy to start a nonprofit and just apply for and get grants. I need to say that it’s not that easy, especially if what you want to fund is legal services. We’ve been trying for 7 years.

Foundations fund us because they see us as a systems change organization. Legal services are just one part of our systems change puzzle, which we combine with education, policy advocacy, and movement building in order to have a deep social impact. That’s what foundations have seemed interested in funding. And – by the way-- there’s a huge need for other organizations to emerge and take similar approaches to their work in communities everywhere. My organization, in fact, wants to help incubate similar nonprofits.

Solo practice: Nonprofit: Attorneys at the Nonprofit have solo practice too. Must be kept separate. No business from nonprofit to solo. Solo practice: Nonprofit: It’s ok to do both. Attorneys have a small solo practice on the side, while the nonprofit is the primary gig. What I like about keeping the solo practice is that I have the flexibility to take whatever client I want and on whatever terms we choose. So I barter with my clients a lot, I’ve take high risk clients, I’ve taken wealthy clients, friends as clients….things that would be harder to do from within my nonprofit. But with the nonprofit, I’m able to look at the broader needs of society, strategize about systems change, and access the resources to do that work in a variety of ways beyond just legal services. If you are going to practice law under two entities, the most important thing is to keep a very clear separation between the two entities so that clients know which entity is serving them, and they are not mis-led, first of all. Second, if you have a nonprofit, you really need to make sure that nonprofit is not operating to send business to your for-profit, which would create inappropriate private benefit. But beyond that, doing both can be a really rewarding way to be a lawyer.

Directory of Nonprofit Law Firms To date 198 people have contacted OLS from all over: And Singapore!

25 firms have participated so far Employ 59 FT attorneys Directory of Nonprofit Law Firms Nonprofit Law Firm = Nonprofit organization that charges money to provide legal services 25 firms have participated so far Employ 59 FT attorneys

Nonprofit Law Firms are EXPLODING Between 2015 and 2016 the # of nonprofit law firms DOUBLED!

Nonprofit Law Firms are Growing 18% CAGR!

Chart based on 990s from 2015 (most recent available year) Client vs. Grant/Donor Funding Varies Chart based on 990s from 2015 (most recent available year)

Practice Areas

If you live in a gray state, start a nonprofit law firm! Nonprofit Law Firms are Spreading Charlottesville Area Immigration Assistance is closing Maine Community Law Center got an adverse IRS determination & is refiling If you live in a gray state, start a nonprofit law firm!

Nonprofit Law Firm Directory Help me populate this nonprofit law firm directory 2) What metrics should I be tracking?

Fee Structures (and payment or collection issues)

Marketing/Advertising (and referrals)

Lawyer/Staff Compensation (& loan forgiveness) Recruiting too

Training and Quality Control for delivery of services

Relations with and Resistance from the Private Bar

Non-Profit Law Firms as Businesses Key Business Metrics

Top Tips / Lessons Learned / Sustainability

Conclusion and Questions David McNeill david@OpenLegalServices.org Bruce Wiener bruce@boulderbridgetojustice.org Elizabeth Burnett elizabeth@theselc.org Lee A. DiFilippo lee@difilippoholisticlaw.com