IOLA Fund Legal Assistance Grants Plunge to $6.5 Million for 2010

On March 10, 2010, the Trustees of the IOLA Fund awarded nearly $6.5
million in grants for April to December of 2010 to support programs
that provide free civil legal services to low-income persons throughout
New York State. The amount represents a substantial decrease over
grants awarded in the Fund’s previous grant period.

Benito Romano, chair of the Fund’s Board of Trustees said:
Due to historically low bank interest rates, the Fund’s income has decreased nearly 80%. In December of 2008 when IOLA made its last round of grant making, IOLA had nearly $32 million available for grants, the $6.5 available now represents a decrease of $25 million.”

The grants were made for the remaining nine months of 2010 in the hope that interest rates may improve later in the year resulting in a greater capacity for future grantmaking. IOLA thanks the lawyers of New York and their bar associations for their continued strong support of IOLA bank accounts the Funds sole source of income.

Christopher O’Malley, the Fund’s executive director emphasized the critical need for greater funding for legal services:
“As a result of the economic downturn both the number of low-income New Yorkers, and the need for civil legal services has skyrocketed. Unfortunately at the same time IOLA’s income has dropped and this will have a huge impact on the delivery of civil legal services throughout the state, and this underscores the need for greater financial support for civil legal service programs.”

The Fund administers two grant programs: Civil Legal Services, which supports programs that provide free legal services in housing, family law and public benefits, among others, and Administration of Justice, which supports programs that serve the elderly, the disabled, immigrants, children, and victims of domestic violence as well as other programs that improve the administration of justice in New York State.

The Legislature created the IOLA program in 1983. The Fund is administered by a Board of Trustees appointed by the Governor. It enables interest to be earned on short term or nominal deposits held in a lawyer's pooled client trust account, with the interest remitted directly by the financial institution to the Fund for distribution in grants.

For more information, contact: Christopher O’Malley, IOLA
Executive Director
(646) 865-1541

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