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In the year ending March 31, 2014, the ACLU and the ACLU Foundation had a combined income from support and revenue of 0.4 million, originating from grants (50.0%), membership donations (25.4%), donated legal services (7.6%), bequests (16.2%), and revenue (0.9%).

The local affiliates solicit their own funding; however, some also receive funds from the national ACLU, with the distribution and amount of such assistance varying from state to state.

By 1964, membership had risen to 80,000, and the ACLU participated in efforts to expand civil liberties.

Legally, the ACLU consists of two separate but closely affiliated nonprofit organizations: the American Civil Liberties Union, a 501(c)(4) social welfare group, and the ACLU Foundation, a 501(c)(3) public charity.

Both organizations engage in civil rights litigation, advocacy, and education, but only donations to the 501(c)(3) foundation are tax deductible, and only the 501(c)(4) group can engage in unlimited political lobbying.

Due to the nature of its legal work, the ACLU is often involved in litigation against governmental bodies, which are generally protected from adverse monetary judgments; a town, state or federal agency may be required to change its laws or behave differently, but not to pay monetary damages except by an explicit statutory waiver.

In some cases, the law permits plaintiffs who successfully sue government agencies to collect money damages or other monetary relief.

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In particular, the Civil Rights Attorney's Fees Award Act of 1976 leaves the government liable in some civil rights cases.

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