IOLTA Grant Program

IOLTA Grant Program Overview

Program Name: Interest On Lawyers' Trust Accounts (IOLTA) Grant Program

Administering Organization: Tennessee Bar Foundation, established by the Tennessee Supreme Court in 1984

Geographic Scope: Tennessee (all 95 counties eligible)

Funding Source: Interest earned on lawyers' pooled trust checking accounts

Program History: Since inception in 1988, the program has awarded more than $34 million in grants. The 2026 grant cycle represents the largest in the program's 38-year history, distributing over $4 million to 41 organizations.

Purpose & Eligible Activities

IOLTA funds support three primary purposes as approved by the Tennessee Supreme Court:

1. Delivery of legal services to the poor - Organizations providing direct civil legal assistance to indigent clients
2. Student loans or grants - For deserving law students at state-supported law schools
3. Improvement of the administration of justice - Programs with direct, secondary, or eventual beneficial impact on legal processes

Types of Supported Services

• Direct civil legal representation for low-income clients
• Legal aid services and legal clinics
• Alternative dispute resolution and mediation services
• Housing advocacy
• Assistance for survivors of domestic violence
• Victim offender reconciliation programs
• Legal navigation and support services

Eligibility Requirements

To be eligible for an IOLTA grant, an organization must:

• Be exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code, OR agree to use IOLTA grant funds only for charitable or educational purposes within the meaning of Section 501(c)(3); AND
• Be an equal opportunity employer that does not discriminate on the basis of race, religion, marital status, color, national origin, sex, age, or disability
• Provide either direct civil legal service to indigent clients or work to improve the administration of justice

Organizations Encouraged to Apply

• New applicants (those who have not previously applied)
• Current and past grantees
• Organizations at all capacity levels

What the Foundation WILL NOT Fund

• Political campaigns
• Organizations designed primarily for lobbying
• Activities that local, state, or federal government has an obligation to fund
• Charitable activities that promote a specific religion OR require participation in a religious activity as a condition for service receipt (however, grants may be awarded to faith-based organizations for non-religious purposes)

Funding Considerations

Annual Variation: The dollar amount available to grant varies year to year based on:

Interest rates paid on participating lawyer trust checking accounts

Economic conditions and Federal Funds Target Rate

Business cycles

2026 Funding Context: The Foundation anticipates funding levels consistent with 2025 ($3+ million). Historical context:

2025: Over $3 million awarded to 39 organizations

2024: Significant increase over 2023

2023: $1,263,890 to 29 organizations

2018-2020: Approximately $500,000 annually

Grant Review Process

Grant Review Committee:

12 lawyers and judges serving staggered three-year terms

Appointed by nine state-wide "practicing bar" organizations

Ensures diverse group of practitioners

Makes comprehensive recommendations to Board of Trustees

Board of Trustees: 12-member board makes final grant decisions

Evaluation Criteria

Applications more likely to RECEIVE awards demonstrate:

Clear, concise, well-written narratives that address each question as if the reader is unfamiliar with the organization

History of success in the field

Articulated pressing need for the services

IOLTA funds are NOT the sole source of support (diverse funding sources)

Proper adherence to application format and submission process

Responsive to any informational requests from Grant Review Committee

Strong, well-structured governing board

Healthy financial resources beyond IOLTA funding

Applications more likely to be DENIED demonstrate:

Little demonstrated need for or use of the service offered

Poorly structured governing board (few members, numerous members from same industry)

Thin financial resources (IOLTA as sole funding source, no indication of efforts to secure other support)

Grant request amounts drastically out of alignment with similar organizations' awards

Community with little use of the service offered

Lack of variety in revenue sources

Grant Agreement Requirements

Successful applicants must:

Execute and comply with Grant Agreement terms

Perform the project as described in the IOLTA grant application

Agree that the successful grant application will be available for public inspection

Submit timely reports detailing project progress and IOLTA funds expenditure

Cooperate with data collection and evaluation requests from the Foundation or its representatives

Contact Information

Tennessee Bar Foundation
618 Church Street, Suite 120
Nashville, TN 37219-2456

Phone: (615) 242-1531 | (800) 634-2516
Fax: (615) 255-0306
Email: info@tnbarfoundation.org
Website: tnbarfoundation.org

Executive Director: John Murphy
Recent Director: Barri Bernstein (referenced in historical materials)