Restitution funds are typically employed in consumer class actions, discrimination suits, mass tort cases, and environmental hazard litigation. They are also being used in criminal cases where a class of persons or a community has been harmed. Community foundations can administer restitution funds, and several features make them attractive as custodians of funds established to benefit an injured class or community. As public charities, community foundations are not subject to the Federal excise tax and most other restrictions placed on private foundations. Legal considerations associated with the administration of restitution funds are identified, guidelines on when to use community foundations are offered, and procedures for structuring and implementing restitution funds are described. 10 notes