Cy Pres

BBB Institute and Cy Pres Awards

What is a cy pres award? 

A cy pres award is a court-ordered distribution of leftover funds from a class action lawsuit or other court case to a charitable organization. The award is issued when funds cannot be distributed to the intended beneficiaries (like class members) due to delivery challenges or unclaimed amounts. The funds are provided to organizations whose missions align with the purpose of a settlement or judgment.  

BBB Institute is eligible to receive cy pres awards 

A trustworthy marketplace occurs when consumers, particularly vulnerable populations, are empowered to protect themselves and make informed buying and investing decisions, and when businesses deliver their products and services with integrity. The Better Business Bureau has been working to empower consumers and uplift trustworthy businesses for more than a century. This proven history of success makes BBB Institute, the 501(c)(3) educational foundation of the International Association of Better Business Bureaus, an ideal candidate for cy pres awards that are focused on improving marketplace conditions through consumer education and business best practices. 

BBB Institute develops its programs based on three factors:  

1. 1. Real-time data reported by consumers and businesses to Better Business Bureau regarding scams and complaints against certain types of businesses. 
   2. Groundbreaking research about the latest marketplace challenges, and
   3. Critical needs BBBs are witnessing in their respective communities.

This approach is possible in large part due to crowdsourced data that is submitted to BBB 24/7 via BBB Institute’s online consumer reporting tools, which collect telemarketing complaints, scam reports, business complaints, and reports about misleading advertisements. The data reveals marketplace trends, trustworthy and untrustworthy practices, and educational opportunities for both consumers and businesses, and helps devote resources to addressing issues that most often affect consumers. 

BBB Institute’s work using cy pres awards 

Cy pres awards enable charitable organizations to expand their reach and impact. BBB Institute has received several cy pres awards, significantly increasing the number of people we have helped. By working with our network of BBBs serving communities throughout the United States and Canada, BBB Institute is well equipped to deliver resources, programs, research, and campaigns designed to empower consumers and businesses to avoid scams and unethical business practices.  

 Our cy pres work covers a wide range of consumer- and business-related issues such as digital literacy, scam/fraud prevention, and identifying questionable claims in advertising.  

We provide educational programs for a wide range of consumer groups, including: 

• • Military service members,  
  • Military spouses,
  • Veterans,
  • Students,
  • Seniors,
  • Underserved communities, and
  • Many others. 

Through one of our cy pres awards, BBB Institute spread awareness about confusing or misleading advertising claims to more than 217 million people through a public service campaign. We also used the funds to empower the public to report problematic advertisements to the Better Business Bureau.  

BBB Institute has used cy pres awards and other funding to: 

• • Expand our in-person and digital consumer education programs on a wide variety of topics
  • Publish timely research about scams and other marketplace challenges,
  • Introduce online tools and resources that inform and protect people,
  • Distribute consumer education campaigns, and
  • Reach millions of consumers and businesses with critical information about scams, misleading ads, and more. 

Areas of expertise offered by BBB Institute that are well suited to cy pres awards: 

• • Fraud and scam prevention 
  • Scam victim resources
  • False, deceptive, and unlawful advertising and marketing
  • TCPA-related education (including robocalls)
  • Financial literacy
  • Digital literacy
  • SCRA Servicemembers Civil Relief Act (SCRA) protections
  • Privacy-related issues 

For more information about our cy pres work, please contact BBB Institute at Institute@IABBB.org.