Pro Bono

Every legal practice needs to understand “The Business of Law',” but this cannot be separated from being sensitive to human needs. That is particularly true for the concept of pro bono publico (“for the public good”), where lawyers voluntarily contribute their time without charge or at substantially reduced rates, to persons and groups that otherwise could not afford legal counsel. Rule of Professional Conduct 6.1 states clearly: “Every lawyer has a professional responsibility to provide legal services to those unable to pay. A lawyer should aspire to render at least (50) hours of pro bono publico legal services per year.”

Nearly 15 years ago the ABA and the Pro Bono Institute launched the “Law Firm Pro Bono Challenge” for larger firms with more than 50 lawyers to make an institutional, rather than an individual lawyer, pro bono commitment. It offers a progressive and ambitious standard: a target of either 5% or 3% of each firm's total billable hours, in addition to the hours-per-attorney standard commonly used in articulating pro bono goals. (While firms do have the option to select an alternative goal of 100 or 60 hours per attorney, virtually all signatory firms have elected to use the preferred percentage goals).

By promoting a percentage goal, the Challenge ties pro bono activity to firm productivity and profitability. This is an important consideration. The simple fact is that no lawyer or law firm can be expected to fulfill a broader social purpose of serving the public unless there is a business foundation for fulfilling that purpose. Individual lawyers and firms alike cannot ignore the financial and operational dimensions of what pro bono activities require. This should not make pro bono an afterthought or sideline. Instead, it means that pro bono should be an integral part of every aspect of what any size firm does. Here are some key considerations.

Pro Bono and Profitability

Profitability ultimately is the key to successful pro bono performance in any firm of any size. If the client billings and collections are not sufficient to support pro bono non-billable time, the commitment to serving the public will be tenuous at best. Whether for a small practice or a megafirm, strong financial performance is the foundation that supports making a meaningful pro bono effort. The largest firms know (just as the largest corporations do) that profitability supports the provision of programs and services that benefit people who cannot otherwise afford them. A documented cash flow analysis can give you more peace of mind to undertake pro bono matters

Pro Bono and Compensation

If a firm of any size wants to encourage lawyers to undertake pro bono work, it is essential that the compensation system track and give some compensation recognition for non-billable service ' whether it is pro bono representation, involvement in professional associations, community service activity, or some other use of lawyer time that does not go directly to billable client work. Although lawyers regularly engage in many civic and charitable activities, by volunteering, serving on bar association committees and boards of nonprofit organizations, and otherwise contributing to their communities, large firms may not track and give pro bono credit for such activity. Instead they often focus only on pro bono litigation. If the pro bono concept is to be meaningful, the firm compensation system should track and give some compensation recognition for all non-billable service, including pro bono representation, involvement in professional associations, community service activity in the United Way or the arts, etc.

Pro Bono and Time

There is also another dimension to the resources necessary for pro bono undertakings: the dimension of time. Do the math in the context of a law firm of any size. Requiring lawyers to have six billable hours a day seems adequate; yet, times five days times 50 weeks, it provides only 1,500 hours per year ' well below what most firms target. Raise the target to eight hours of billable time a day and you get to 2,000 hours a year, which is close to what most large firms expect. Yet how can lawyers get that many billable hours per day and do pro bono work, as well as business development and continuing education? That, of course, doesn't even begin to include personal responsibilities and time. One solution is to combine pro bono activity with marketing effort, a business solution that deserves more detailed analysis.

Pro Bono and Marketing

I once coached a lawyer who felt her practice was growing so rapidly that she needed to add an associate to keep up. Upon assessment, the practice's revenues were growing rapidly, but were still well below the level that could support a full-time associate. The practice was not as profitable as it should have been because the lawyer was outsourcing too much work on a contract basis in order to devote more time than was practical to pro bono projects and activities. Ultimately, we decided that the lawyer should shift her business development and community service focus to activities where she would interact with businesspeople who could be potential sources of new business or referrals. The change recognized the practicality that the success of her practice was integral to, and not distinct from, pro bono work.

The issue of networking is a critical one. The fact is that every lawyer involved in pro bono activity has networking circles that can be expanded to serve as business development connections. A community network involves interaction with individuals who may not primarily see you as a professional service provider but who nonetheless include potential clients: members of your religious affiliation, members of cultural association boards, alumni association contacts and similar individuals. By contrast, a professional network includes professional referral sources who may not become clients themselves but who can refer their own clients to you. These referral sources include brokers, bankers, CPAs, consultants, financial planners and other lawyers ' all of whom you may also encounter in pro bono activities.

These contacts deserve the same organization and focus as an investment portfolio. Categorize individuals by location, professional specialty or personal interest. Then begin networking ' the practical process of systematically expanding business development relationships. You may find that you are enhancing the client development capability of your firm ' at the same time as you are pursuing and enhancing your capability to pursue pro bono work.

Pro Bono and Organizational Development

For more than a year, a number of major law firms have paid hundreds of new-hire “deferred associates” reduced stipends to spend a year doing public interest work pro bono until the business slowdown ends. The associates gain valuable experience that will benefit them and their employers later, and the firms hold on to talent that they recruited. There is sacrifice involved on both sides. The stipends may be 50% of the starting salaries the associates expected when recruited, while ' according to the Pro Bono Institute ' the firms cannot claim “credit” for this pro bono service because the associates are not yet their employees.

Pro Bono and Personal Choice

All the issues discussed here reinforce that any lawyer's pro bono work reflects personal choice. Often the choice involves everyday practice matters. If an acquaintance needs legal advice, but obviously can't pay for the full cost, you have to decide what to do. If the decision is that it's a pro bono matter that you want to undertake, then do it. If the friend has modest means and can pay something, then decide what the charge should be. There is nothing wrong with either choice. But if your decision comes down to charging a reduced rate, take care that the friend/client does not exert subtle or overt pressure to ultimately make them your pro bono activity.

In another variation, limited scope representation, lawyers take only a part of a case. That could mean a reduced fee to help people of limited means fill out forms and prepare documents and to coach them on how to present in court, or to represent them in court for only one or two hearings. Limited scope representation occupies a middle ground between representing those clients who can pay for full legal service, and those who need pro bono assistance.

Ultimately, there is no “one size fits all” pro bono approach. No matter what your choice, the need will still be there.

Edward Poll, J.D., M.B.A., CMC, Principal, LawBiz Management, helps law firms increase profitability, coaching them on issues of internal operations, practice development, and financial matters. He practiced law for 25 years, has coached lawyers for 20 years, and is the author of 13 books. Poll is a member of this newsletter's Board of Editors, a Fellow of the College of Law Practice Management, a board-certified Coach to the Legal Profession, a charter member of the Million Dollar Consulting' Hall of Fame and Recipient of a Lifetime Achievement Award, State Bar of California (LPMT Section). He can be reached at 800-837-5880, www.lawbiz.com, www.lawbizblog.com, and www.lawbizforum.com.

Every legal practice needs to understand “The Business of Law',” but this cannot be separated from being sensitive to human needs. That is particularly true for the concept of pro bono publico (“for the public good”), where lawyers voluntarily contribute their time without charge or at substantially reduced rates, to persons and groups that otherwise could not afford legal counsel. Rule of Professional Conduct 6.1 states clearly: “Every lawyer has a professional responsibility to provide legal services to those unable to pay. A lawyer should aspire to render at least (50) hours of pro bono publico legal services per year.”

Nearly 15 years ago the ABA and the Pro Bono Institute launched the “Law Firm Pro Bono Challenge” for larger firms with more than 50 lawyers to make an institutional, rather than an individual lawyer, pro bono commitment. It offers a progressive and ambitious standard: a target of either 5% or 3% of each firm's total billable hours, in addition to the hours-per-attorney standard commonly used in articulating pro bono goals. (While firms do have the option to select an alternative goal of 100 or 60 hours per attorney, virtually all signatory firms have elected to use the preferred percentage goals).

By promoting a percentage goal, the Challenge ties pro bono activity to firm productivity and profitability. This is an important consideration. The simple fact is that no lawyer or law firm can be expected to fulfill a broader social purpose of serving the public unless there is a business foundation for fulfilling that purpose. Individual lawyers and firms alike cannot ignore the financial and operational dimensions of what pro bono activities require. This should not make pro bono an afterthought or sideline. Instead, it means that pro bono should be an integral part of every aspect of what any size firm does. Here are some key considerations.

Pro Bono and Profitability

Profitability ultimately is the key to successful pro bono performance in any firm of any size. If the client billings and collections are not sufficient to support pro bono non-billable time, the commitment to serving the public will be tenuous at best. Whether for a small practice or a megafirm, strong financial performance is the foundation that supports making a meaningful pro bono effort. The largest firms know (just as the largest corporations do) that profitability supports the provision of programs and services that benefit people who cannot otherwise afford them. A documented cash flow analysis can give you more peace of mind to undertake pro bono matters

Pro Bono and Compensation

If a firm of any size wants to encourage lawyers to undertake pro bono work, it is essential that the compensation system track and give some compensation recognition for non-billable service ' whether it is pro bono representation, involvement in professional associations, community service activity, or some other use of lawyer time that does not go directly to billable client work. Although lawyers regularly engage in many civic and charitable activities, by volunteering, serving on bar association committees and boards of nonprofit organizations, and otherwise contributing to their communities, large firms may not track and give pro bono credit for such activity. Instead they often focus only on pro bono litigation. If the pro bono concept is to be meaningful, the firm compensation system should track and give some compensation recognition for all non-billable service, including pro bono representation, involvement in professional associations, community service activity in the United Way or the arts, etc.

Pro Bono and Time

There is also another dimension to the resources necessary for pro bono undertakings: the dimension of time. Do the math in the context of a law firm of any size. Requiring lawyers to have six billable hours a day seems adequate; yet, times five days times 50 weeks, it provides only 1,500 hours per year ' well below what most firms target. Raise the target to eight hours of billable time a day and you get to 2,000 hours a year, which is close to what most large firms expect. Yet how can lawyers get that many billable hours per day and do pro bono work, as well as business development and continuing education? That, of course, doesn't even begin to include personal responsibilities and time. One solution is to combine pro bono activity with marketing effort, a business solution that deserves more detailed analysis.

Pro Bono and Marketing

I once coached a lawyer who felt her practice was growing so rapidly that she needed to add an associate to keep up. Upon assessment, the practice's revenues were growing rapidly, but were still well below the level that could support a full-time associate. The practice was not as profitable as it should have been because the lawyer was outsourcing too much work on a contract basis in order to devote more time than was practical to pro bono projects and activities. Ultimately, we decided that the lawyer should shift her business development and community service focus to activities where she would interact with businesspeople who could be potential sources of new business or referrals. The change recognized the practicality that the success of her practice was integral to, and not distinct from, pro bono work.

The issue of networking is a critical one. The fact is that every lawyer involved in pro bono activity has networking circles that can be expanded to serve as business development connections. A community network involves interaction with individuals who may not primarily see you as a professional service provider but who nonetheless include potential clients: members of your religious affiliation, members of cultural association boards, alumni association contacts and similar individuals. By contrast, a professional network includes professional referral sources who may not become clients themselves but who can refer their own clients to you. These referral sources include brokers, bankers, CPAs, consultants, financial planners and other lawyers ' all of whom you may also encounter in pro bono activities.

These contacts deserve the same organization and focus as an investment portfolio. Categorize individuals by location, professional specialty or personal interest. Then begin networking ' the practical process of systematically expanding business development relationships. You may find that you are enhancing the client development capability of your firm ' at the same time as you are pursuing and enhancing your capability to pursue pro bono work.

Pro Bono and Organizational Development

For more than a year, a number of major law firms have paid hundreds of new-hire “deferred associates” reduced stipends to spend a year doing public interest work pro bono until the business slowdown ends. The associates gain valuable experience that will benefit them and their employers later, and the firms hold on to talent that they recruited. There is sacrifice involved on both sides. The stipends may be 50% of the starting salaries the associates expected when recruited, while ' according to the Pro Bono Institute ' the firms cannot claim “credit” for this pro bono service because the associates are not yet their employees.

Pro Bono and Personal Choice

All the issues discussed here reinforce that any lawyer's pro bono work reflects personal choice. Often the choice involves everyday practice matters. If an acquaintance needs legal advice, but obviously can't pay for the full cost, you have to decide what to do. If the decision is that it's a pro bono matter that you want to undertake, then do it. If the friend has modest means and can pay something, then decide what the charge should be. There is nothing wrong with either choice. But if your decision comes down to charging a reduced rate, take care that the friend/client does not exert subtle or overt pressure to ultimately make them your pro bono activity.

In another variation, limited scope representation, lawyers take only a part of a case. That could mean a reduced fee to help people of limited means fill out forms and prepare documents and to coach them on how to present in court, or to represent them in court for only one or two hearings. Limited scope representation occupies a middle ground between representing those clients who can pay for full legal service, and those who need pro bono assistance.

Ultimately, there is no “one size fits all” pro bono approach. No matter what your choice, the need will still be there.

Edward Poll, J.D., M.B.A., CMC, Principal, LawBiz Management, helps law firms increase profitability, coaching them on issues of internal operations, practice development, and financial matters. He practiced law for 25 years, has coached lawyers for 20 years, and is the author of 13 books. Poll is a member of this newsletter's Board of Editors, a Fellow of the College of Law Practice Management, a board-certified Coach to the Legal Profession, a charter member of the Million Dollar Consulting' Hall of Fame and Recipient of a Lifetime Achievement Award, State Bar of California (LPMT Section). He can be reached at 800-837-5880, www.lawbiz.com, www.lawbizblog.com, and www.lawbizforum.com.