How it Works - Our Full Guide
Table of Contents
For Donors
What is Article Two?
We enable lawyers and clients to use the law to fight for the public interest.
Lawyers list campaigns to crowdfund public interest law, with the instructions of their clients if there is an identified matter. They have the help of a Compliance and Precedents Guide so they know how to use crowdfunding within the limits of their legal and ethical responsibilities.
How it works
- A client instructs a lawyer about a public interest legal cause, or a law firm identifies a systemic legal issue among their clients
- Lawyers draft a campaign, with client instructions if necessary
- Lawyers consider feedback from Article Two, with client instructions if necessary
- Lawyers and clients market the campaign and provide updates
- The crowdfunded campaign works to change society for the better
What is public interest law?
There’s no single definition. Article Two accepts campaigns that would improve our community without making things worse for people who already have it hard. Does the problem affect a group of people? Are a lot of people concerned about the problem? Can the law be used to make it better? Your donation can create systemic change.
How can I trust an Article Two campaign?
Only lawyers can list campaigns. Lawyers are a profession with a regulator that investigates breaches of legal and ethical obligations. Unethical conduct using Article Two can be investigated by the regulator. Lawyers might work with clients on an identified matter involving the public interest, or they might list a campaign on their own. Either way, it’s the lawyer’s conduct that is regulated, so any misconduct can be investigated. On Article Two, your donation is safe because the legal profession is regulated.
Where does my donation go?
Your donation through Article Two will go directly into the account of the lawyer, usually a trust account. Lawyers have to report on their trust accounts, so your donation is safe from being redirected for some other purpose. Minus processing fees and 5% to us, your whole donation goes straight to the lawyers responsible for the campaign. Any misconduct can be investigated by the regulator.
Can I give my opinion on how any litigation should go?
No. Lawyers can and do go after donors to litigation if the donors take an active part in the proceedings. Lawyers also have a strict obligation to take instructions only from their client, and to act in their clients’ best interests. Letting the lawyers conduct the litigation, with instructions from their properly advised client, keeps donors, lawyers, and litigants safe.
Will I receive updates?
Outcomes might not be publicly disclosable because of client legal privilege. This might be a written legal advice. It might be confidential advocacy by expert lawyers. It may be an investigation driven by lawyers. Article Two encourages updates from the lawyers responsible for the campaign, where possible. However, because of the long timelines in the law, a final outcome may take months or years.
Curious about legal words?
Law shouldn’t only be for lawyers. Check out our Glossary.
For Lawyers
Here’s a practical guide for using Article Two with your clients.
For detailed information on the applicable laws and precedents on lawyers’ obligations and legal practice, see our Compliance and Precedents Guide. For questions from your client, you could start by referring them to the Clients section below.
However, we will never disturb the sanctity of the client-lawyer relationship: the usual rules and practices about costs disclosure, client legal privilege, assessment of prospects, and duties to the administration of justice continue to apply. None of our guides should supplant your relationship with the client.
Step 1: Choose Article Two
A client instructs a legal practice about an issue of public interest law, or a legal practice identifies a systemic legal issue among their clients. A legal practice might be a private law firm, community legal centre, or a barrister. The use of law could be written legal advice, legal advocacy to government, law reform campaigns, investigations, or reports. It does not have to be litigation. It could be funding to represent clients from a specific background to address a legal issue that consistently arises.
Note that there are other ways to gain legal representation, including legal aid, community legal centres, the local lawyers’ institute directory, funding for tax code test cases by the Australian Tax Office, and funding for Commonwealth public interest and test cases.
What is public interest law?
Public interest law is any practice of law to represent and advocate for the rights and interests of marginalised individuals or groups, or to address matters of broad public concern, or to prevent or reduce the impact of an oppressive policy. Where litigation is used, it uses the power of the judiciary to hold the legislature and executive in check.
There is no single definition of public interest law. Article Two broadly accepts campaigns that would improve our community without persecuting already marginalised communities.
Does it have to be litigation?
No. Crowdfunding can be for a dedicated paralegal or solicitor focusing on one kind of public interest law. It could be for written legal advice only, or legal advocacy for the executive to take action, or law reform advocacy, or an initial investigation by lawyers to see whether there is a lawsuit.
What should I discuss with my client?
You can use this page and the Clients page to consider what legal advice is required. Any advice should be also given in writing, and a costs agreement should be in place.
What should I change about the costs agreement?
If you decide to litigate, remember that costs recovery is pursuant to the indemnity principle: ordinarily, the losing party indemnifies an obligation of the winning party to pay their lawyers. If there is no obligation, there is no indemnity.
The client, if any, and the legal practice discuss and decide whether crowdfunding is appropriate for them: for any questions about legal terms, our Glossary can help.
Step 2: Draft the Campaign
The legal practice should have a costs agreement with the client that reflect crowdfunding arrangements, including what happens if insufficient funds are raised to meet the goal, or if excess funds are raised. Funds raised are gifted to the client and held in trust by the legal practice. The same regulations about client fees apply regardless of the source of the funds. Crowdfunding is analogous to a client’s parents chipping into their legal costs.
The legal practice drafts a campaign using the Listing Form, with client instructions if necessary. The campaign needs to be in the name and voice of the firm or the responsible lawyer. If the legal practice wants to address a systemic legal issue, it might be a campaign to raise funds for cases or clients fitting a list of criteria, such as “clients affected by sexually transmitted debt” or “cases involving property law and elder abuse”. If the legal practice wants to crowdfund to hire a dedicated person for a systemic issue, it might be a campaign for a community legal centre to hire a lawyer in another state, or for a paralegal to support its caseload. See our Current Campaigns for examples, or contact us directly for a discussion.
Tips on Campaign Drafting
- Studies show that confidence and negative affect generate the most donations! Be clear about what the goal is, and how the current situation has a negative effect on the community. Show confidence and assertiveness where you can.
- Words that show dominance over emotions has been associated with increased funding. Language that is too emotive seems to suggest that a lawyer or client is emotionally blinkered about their campaign. However, more negative wording has been associated with increased funding, because it can trigger feelings of sympathy in a donor.
- Videos and pictures are encouraged!
- If specific causes of action have been decided, consider referring to them. If anything changes, you can provide an update.
- Having a reasonably costed target, and targets for identified categories of costs, would give transparency to donors and may be valuable evidence for any security for costs application, protective costs order application, costs negotiations or applications, or for the consideration of an unsuccessful defendant’s ability to pay damages. You might advise your client to set aside a reasonable amount for adverse costs orders (Kassam v Hazzard; Henry v Hazzard (No 2) [2021] NSWSC 1599), or paying penalties or fines if relevant.
- You might choose a smaller initial goal and update the campaign with stretch goals and messages of thanks, or substantive updates, to give donors a sense of progress and achievement.
- Reported decisions have warned against misrepresentations, including by silence, and against overstating a case.
- Reported decisions have looked poorly upon litigants who used crowdfunding as part of a campaign to improperly pressure the other side, visit reprisals against another party, or impair public confidence in a court.
- Where a matter has already been reported in the news, you could link to it. Anything that has already been reported is already in the public domain, so (barring any retractions) you could refer to facts that have been reported.
- The usual obligations of privilege and confidentiality apply, including client legal privilege, confidentiality, and Harman undertakings. The usual prohibitions against misrepresentations, including misrepresentation by silence, apply.
- Any disclosures in a crowdfunding campaign, or the existence of the crowdfunding campaign itself, can be used as evidence against your client. Be discerning about what is disclosed to the public.
- Any information shared to Article Two can be subpoenaed. Be discerning about what you disclose to us.
- It’s worth reading our Compliance and Precedents Guide for some of the known ways to use crowdfunding to its best potential.
If retained by a client for an identified matter, the legal practice would draft a campaign with the client’s instructions. The usual lawyer-client relationship would apply. Our Compliance and Precedents Guide might help to work through the details.
Step 3: Incorporate Feedback
A practising lawyer with litigation experience from Article Two will then review the draft campaign. We might suggest changes or clarifications, but they will only be suggestions, because we won’t have the confidential information you have. The legal practice considers the feedback, with client instructions if necessary, and makes any changes before resubmitting.
Finally, our Campaign Listing Checklist helps you with one last proofread to help you comply with your obligations as best as you can.
Step 4: Generate Donations
Congratulations! Your campaign is listed on Article Two. The legal practice and the client market the campaign to generate donations! Crowdfunding campaigns have had success with traditional media engagement, social media posts, and in-person engagement with small and big donors. Research shows that updates are opportunities to generate interest during the middle of a campaign. Finally, toward the end of a campaign, another media push will help generate a last wave of donations before the deadline.
Broader research on crowdfunding also shows that updates, the development of a community, and showing innovativeness can contribute to the success of a campaign.
Step 5: Receive and Use Funds
Whatever money is raised is paid into the trust account of the legal practice, or another account nominated by the legal practice, to be spent on legal fees and disbursements in accordance with the costs agreement and the campaign. Article Two takes processing fees and a 5% fee for administration and compliance costs. There is no need to fulfil the target. Ideally, the legal practice and client will provide appropriate updates. Periodically? Lump sum? More detail about payment platform here (Stripe Connect?)
Article Two partners with Stripe Connect, which complies with the highest applicable global anti-money laundering and counter-terrorism financing regulations in each jurisdiction it operates in. It also screens users against domestic and international sanctions lists. Stripe stays abreast of changes to applicable laws and regulations, and it may also choose not to provide high-risk services that fall outside of Stripe’s risk appetite. The risk of money donated through Stripe causing lawyers to breach AML/CTF regulations is therefore minimal. All the usual obligations on solicitors continue to apply when they receive crowdfunded money into their trust account.
In the case of litigation, consider getting a protective costs order for the crowdfunded amount so the client can be protected from an unaffordable adverse costs order.
Ready to launch your campaign? Create an account or log in here.
For Clients
How it Works
- A client instructs a lawyer about a public interest legal cause, or a law firm identifies a systemic legal issue among their clients
- Lawyers draft a campaign, with client instructions if necessary
- Lawyers consider feedback from Article Two, with client instructions if necessary
- Lawyers and clients market the campaign and provide updates
- The crowdfunded campaign works to change society for the better
Is Article Two right for me?
Do you have a legal problem that is a matter of public interest? You should find a lawyer who can list a campaign with your help. Lawyers have to follow the rules and act in your best interest, so they are the best choice for a crowdfunding campaign that complies with those rules. We’ve set out some help for lawyers in our Compliance and Precedents Guide. We do not give legal advice, and we do not get involved in your relationship with your lawyer.
What is public interest law?
There’s no single definition. Article Two accepts campaigns that would improve our community without making things worse for people who already have it hard. Does your problem affect a group of people? Are a lot of people concerned about the problem? Can the law be used to make it better? Your lawyers will be able to advise you. This is why Article Two only allows lawyers to list campaigns.
Is my matter right for Article Two?
You should agree on this with your legal representatives, because they will be drafting your campaign for you. It has to be a matter in the public interest. You should also discuss with your lawyer about whether you will be asked to pay any costs yourself, what categories of fees need to be raised, and how much. You might be eligible for legal aid or pro bono services from a private law firm, or a community legal service in your area might be able to help you.
What can funds be raised for?
Solicitors’ fees, barristers’ fees, application fees to courts and tribunals, search fees on registers of records, travel fees so your lawyers can see you or conduct site visits, translation fees, interpreters’ fees, expert report fees, and so on. Your lawyer might choose to act for you pro bono and help you crowdfund for the other costs of litigation, such as paying for an expert report, or getting key documents translated.
It could be written legal advice only, could be legal advocacy for the executive to take action, could be law reform advocacy, could be initial investigation by lawyers. You don’t have to sue to use Article Two. In litigation, it is ordinary that the losing party pays some of the costs of the winning party, so you may have to reserve some money in case you lose and have to pay the other side’s costs.
How much can I raise?
There’s no upper or lower limit, and you don’t need to meet your fundraising goal. You should discuss categories and amounts with your lawyer. Your lawyer’s trust account will receive the crowdfunded money, minus processing fees and 5%. Dream big, but work with your lawyer to break your costs into categories and come up with a reasonable estimate.
I need to defend a lawsuit. Is it too late to use Article Two?
No. You should try to retain a lawyer. You may be able to ask the court for time to crowdfund.
Why can’t I list my own campaign?
Lawyers have strict existing ethical and legal obligations towards the administration of justice, clients, and the use of court resources. If lawyers breach these obligations, they can be reported to the regulator and be disciplined. These obligations apply even when your lawyer uses Article Two.
Our policy of only letting lawyers list campaigns protects you, the client, from accidentally breaching a law or doing something that undermines your position. Non-lawyers are also not trained in client confidentiality, client legal privilege, avoiding misleading and deceptive conduct, and litigation strategy.
Lawyers are already bound by professional and statutory obligations that hold them to a high standard of conduct. They have to account for money held in trust. They are not allowed to help clients to do illegal activities or file claims that abuse court processes. If lawyers breach their obligations to their clients, they can be reported to the regulator and disciplined. So, the ethical and legal obligations on lawyers protect you and protect the court system.
What do I need to get from my lawyer?
First, find a lawyer who will take your case. Lawyers should always send you a costs agreement setting out the work they will do for you, and how much it will cost. If they want to use Article Two, you should agree on how much to crowdfund. That might include your lawyers’ costs, barristers’ fees, filing fees, expert report fees, and so on. Your lawyer is likely to write the first draft of the crowdfunding campaign. After that, your lawyer might ask you to review the draft campaign before it’s finally listed.
What should I discuss with my lawyer?
What do you need to crowdfund and how much will it cost? How long will your campaign go for? What will your description be? What images or videos will you use? What kind of law do you need: litigation, a submission to an inquiry, an application to an agency? How much should you disclose to generate funds but not expose yourself to the risk of defamation, protect your confidentiality, and not give away your litigation strategy?
How do I get the donations?
Your legal representatives will receive crowdfunded money in their trust account, or bank account, and spend it according to the costs agreement and the campaign. They have to show you invoices of their work, in accordance with the usual rules about legal services. This protects the money because solicitor has to comply with strict rules about how the money can be used. There have been cases where money has been spent on something else.
Can I share more details about my case with donors, or people I know?
You should discuss this with your lawyer, because it will be different in every case.
Do I have to tell people about the progress of my case?
No. Your legal representatives should ideally provide some updates about the progress of the work, but legal representation is confidential to you. The outcome of a case might become public, such as a Court decision that is published.
Will you market my campaign for me?
You and your lawyers can have a lot of success seeking funding—on social media, getting into the news and radio, and by talking about your campaign with advocacy groups that care about the same cause as you.
How do I maximise funding?
Create a timeline and plan to promote your campaign. Your lawyer can’t do it without you!
Get the interest of advocates who are already working on your issue. Speak to journalists and post on social media to generate broader interest in your issue. Engage with people in person, including bigger donors and philanthropic funds. Towards the end of the campaign, do your last big push as you count down to the deadline!
Lawyers sometimes have marketing resources, too.
Will I have to pay anything out of pocket?
Payment of lawyers’ fees are determined by the costs agreement between the client and the lawyer. You should discuss this with your lawyer.
Will I have to pay the other parties if I lose a lawsuit?
In litigation, it is ordinary that the losing party pays some of the costs of the winning party. The judge might award less in costs in cases where a party sues in the public interest. You may decide, with your lawyer, that you should reserve some crowdfunded money in case an order is made to pay the other party’s costs.
What happens if I fundraise more than I ask for?
It will be transferred to your legal representatives’ trust account. What happens to the money will depend on the costs agreement between you and your legal representatives, but people who crowdfund public interest litigation usually donate excess funds to an organisation working on the same cause. You can also re-donate the funds to a similar campaign on Article Two and support someone else’s cause.
What happens if I don’t meet my fundraising goal?
You should discuss this with your lawyer. There are options like protective costs orders or costs capping orders, or you and your lawyers might choose a different cause of action with less costs exposure, or plead fewer facts so the case is smaller and generates less in legal costs.
What then?
You might need to crowdfund again if there are additional costs, but you don’t need to hear from us again! Your lawyers will send you updates about the progress of your matter, as usual. They will send you invoices for work done, which will be drawn from the crowdfunded money in their trust account. That’s also a rule that your lawyers have to comply with. Article Two is only involved for the crowdfunding, to enable clients and lawyers to work on public interest law issues together. The rest is up to you! Good luck!
Glossary
There’s a lot of legal terms here! Law shouldn’t be only for lawyers. Our Glossary explains some of the legal words you might come across in your public interest law journey.
Compliance and Precedents Guide
We have put together this guidance for your own compliance based on what we currently know about crowdfunding. Each client’s situation will require tailored legal advice from their lawyer.