ABA Leans Into Grant Funding in Face of Declining Membership

The American Bar Association is in “a handsome place, financially,” despite dwindling membership rolls, according to its new executive director.

The nearly 150-year-old organization has tapped into grant money to fill the gap created by steep declines in member dues, said Alpha Brady, who took over the top operations role in July. Mary Smith, the group’s president and public-facing leader, began her one-year term in August.

The ABA brought in $227 million in gross revenue over the last fiscal year, which ended Aug. 31—a record tally. Just over half of the total came from grants, largely from the federal government, which were up by 23% from a year earlier.

“We are very proud of the continued growth of our grants,” said Brady. “It clearly demonstrates the value of our services and is consistent with our mission to serve the public by defending liberty and delivering justice as the national representative of the legal profession.”

The revenue boost puts the ABA in what Brady called “a comfortable space.” It comes at a time when the group’s membership is down by nearly nearly one-third over five years and its role in vetting candidates for federal judge seats diminished.

Grants v. Dues

The ABA’s grant-funded programs fulfill a number of the organization’s key missions, she said. Brady touted the ABA’s rule of law initiative, which helps officials in developing countries establish courts, train judges, and set up ethics rules.

The grant funding bump covers the growing gap in ABA member dues, which dropped to $43.1 million last year, marking a 30% decline over the last five years.

Brady said she recognized that the ABA was hit by lower membership during the pandemic, as were many other member-based organizations.

She said the ABA saw a “small uptick” in total members last year, up about 2%. She plans to increase membership rolls by communicating “even more effectively” the value of an ABA membership to younger lawyers, including opportunities for professional growth such as free continuing legal education.

“You have opportunities to network, you have leadership opportunities, you have opportunities to get your name out as authors of articles and publications,” she said. The ABA is also “the ideal place for you to address your need to be able to give something back to the profession and society.”

Brady noted the ABA’s work with unaccompanied minors at the Texas border as an impactful pro bono opportunity.

Of the ABA’s current 170,000 paid members, 17% are solo or small firm attorneys and 26% are from large firms. ABA spokesman Marc Davis said law firm membership has been “stable” since the pandemic began in 2020, but declined to provide specific firm membership numbers.

Law firms can join as “full firm members” on behalf of their attorneys for a discounted flat rate. When doing so, firms enroll all of their attorneys and business professionals as ABA members.

Though the pandemic and its impact on revenue forced the ABA to lay off staff, Brady says no more layoffs are planned. “We have not had conversations about the need to reduce staff,” she said.

Vetting Judges

President Joe Biden’s administration struck a blow to the ABA’s influence in early 2021, when officials told the organization that it would not be asked to vet possible judicial nominees before the president determines whether he’s going to nominate them. That marked a departure from previous Democratic administrations, which had turned to the ABA for vetting at that stage.

“Regardless of White House policy, the ABA will continue to conduct thorough, nonpartisan peer evaluations of every federal judicial nominee,” said Brady. “We know of no other organization that’s in a position to do that kind of work.”

The organization’s role in the process has been criticized by conservatives, who allege it has a left-leaning tilt that has harmed the organization’s credibility.

The vets have “nothing to do with their political affiliation or their ideology or their philosophy,” Brady said.

“I do believe that there is a role for the ABA,” Brady said.

‘Much More to be Done’

Brady, the first person of color to lead the ABA, oversees a staff of more than 1,000 employees and operations at its Chicago headquarters and the group’s Washington office, as well as at program sites in Texas, California, and about 60 other countries. She also oversees the group’s budget.

The ABA’s total operating revenue in fiscal 2022 was $211 million, according to that year’s consolidated financial statement, nine million less than its operating expenses. Salaries, wages, and benefits made up about half of its expenses, and professional fees and services just under a quarter.

The 62-year-old Brady has been with the ABA since 1988. An Illinois native, she was a city government attorney in Chicago for about a year after finishing law school at Northwestern University. She then jumped to the ABA, where she started working with a group now called the Commission on Racial and Ethnic Diversity in the Profession.

“It was an opportunity for me to get in on the ground floor of something that was close to my heart,” Brady said.

The legal industry has made gains on the diversity and inclusion front since she began her career, Brady said, but that growth has tilted more in some directions than others.

In addition to the commission’s work, the ABA also has been promoting requiring law schools to account for their efforts in enhancing diversity, equity and inclusion among students, faculty and staff.

“You don’t have to pick excellence or diversity,” she said. “I believe you can have excellence and diversity.”

The percentage of people of color at law firms grew from 13.3% in 2013 to 19.2% in 2022, according to the National Association for Law Placement.

“Yes, there have been strides,” Brady said. “There is much more to be done.”