The Kansas Bar Foundation Interest On Lawyers Trust Accounts Program
IOLTA HISTORY
The Kansas Bar Foundation Interest on Lawyers Trust Accounts Program IOLTA HISTORY The Kansas Bar Foundation (Foundation) is a charitable, non-profit corporation affiliated with the Kansas Bar Association (KBA). The Foundation’s Interest on Lawyers Trust Account (IOLTA) Program was established as a funding source for law-related charitable public service projects and was approved by the Kansas Supreme Court in April of 1984. In its petition to the Supreme Court, the Foundation emphasized funding programs which improved the provision of civil legal services to Kansans, provided law-related education, improved the administration of justice, and other programs as approved by the Court. The primary funding was envisioned as providing additional services to low-income Kansans.
The IOLTA program collects the interest from lawyers’ commingled client trust accounts which, prior to the creation of the IOLTA program, were held in non-interest-bearing accounts. The client funds deposited in these accounts are either so small or will be held for such a short amount of time that any interest generated would be less than the expenses to set up a separate account or to separate out, keep appropriate tax records, and dispense interest to each client. However, when a number of these small or short term funds are pooled together, they can produce significant amounts of revenue for law-related charitable public service projects. Participation in the Foundation’s IOLTA program is voluntary on the part of both Kansas lawyers and financial institutions.
All grant applications are reviewed by the Foundation’s IOLTA Committee, which is made up of appointees from the Foundation, the Kansas Bar Association, the Kansas Supreme Court, the Kansas Association for Justice, the Kansas Association of Defense Counsel, the Governor’s Office, and the Kansas Bankers Association. The IOLTA Committee forwards its recommendations to the Foundation’s Board of Trustees for final approval.
Historically, the Foundation has allocated approximately 80% or more of IOLTA funds to the provision of civil legal services to low-income citizens.
GRANT PHILOSOPHY /CATEGORIES
Civil Legal Services: The Foundation has committed itself to assisting with improving the access to the legal system for all Kansans. One of the key methods of accomplishing this objective is by providing grants to civil legal service programs that provide services to low-income citizens. In the past, these grants have concentrated on such high impact clients as victims of domestic violence, the elderly, and children. Funds are made available to assist with administering local and state bar pro bono legal services programs, reduced fee programs and to provide technical support for legal service staff.
Law-Related Education (LRE): The second largest category receiving IOLTA funds has been law-related education projects for the public. A variety of public education seminars on the Constitution have received funding. These seminars have been one-day to day-and-a-half programs developed for secondary school social studies teachers. Funds were also granted to assist with the Close-Up project, Citizen Bee programs, the LRE Clearinghouse, the Law Wise newsletter, the statewide Mock Trial competition, and legal rights and responsibilities booklets.
Access to the Civil Justice System for Low Income Residents: The Kansas Bar Foundation has received a direct grant of residual funds from a class action lawsuit. These funds are to be used to "support activities and programs that promote access to the civil justice system for low income residents" in the state of Kansas. These funds are available to civil legal service programs that provide services to the low income and other programs that relate directly to promoting and facilitating access to the civil justice system of the low income through education or other means.
Administration of Justice: The Foundation will consider grants to improve the administration of justice in Kansas. Generally, this area has covered such concerns as alternative procedures for the resolution of disputes, promotion and support for programs facilitating access to the legal system, and improvements in the court system.
Foreclosure Prevention Legal Assistance: The Kansas Bar Foundation has received funds from a Bank of America settlement. These funds are to go to legal service organizations and used for things like assistance to homeowners with notification of being in arrearage, assistance to homeowners who fell behind and were threatened with court action or received notice of foreclosure; matters in which a loan modification was sought or obtained, including through foreclosure mitigation programs; legal assistance with servicer violations resulting in foreclosure notice; negotiation of retention programs, including forbearance plans, reinstatement quotes, and repayment plans; transitional options, including traditional short sale, deed in lieu of foreclosure and cash for keys; escalation, mediation, litigation and appeal of servicer violations, loan modification denials, and foreclosure.
Community Redevelopment Legal Assistance: The Kansas Bar Foundation has received funds from a Bank of America settlement. These funds are to go to legal service organizations and used for things like support to non-profits or small businesses on projects or program that generate affordable housing or job creation.