IOLTA Grant Program

IOLTA Grant Program Overview

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

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

Nashville, TN 37219-2456

Fax: (615) 255-0306

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

2026 IOLTA Grant Application Process

Application Submission Method: Fully online through grant management portal

Deadline: 11:59 PM CST on Monday, September 29, 2025 (for 2026 grants)

Note: This deadline has passed as of the current date (April 3, 2026). The next application cycle deadline would be September 2026.

Application Components

1. Interest Form Submission
- Begin by submitting an online Interest Form
- Upon receipt, applicant receives email with link to full application form and further instructions

2. Complete Application Form
- Fully online submission
- All questions must be fully answered
- If a question doesn't apply, write "N/A"
- Avoid referring to answers from other questions; answer each question as if the reader is unfamiliar with the organization

3. Narrative Questions
- Each narrative question has a specific word limit noted on the application form
- Word count will not be automatically tracked, but applicants should observe limits as closely as possible
- Questions cover:
- Detailed description of proposed project (objectives, activities, timeline, expected outcomes)
- Which funding category the project aligns with (see four categories below)

4. Budget Submission
- Operating budget for the organization
- Detailed program budget outlining all project expenses
- All funding sources listed

5. Supporting Documents (must upload)
- IRS Determination Letter (501(c)(3) status)
- Form 990 (most recent)
- Most recent audit or financial review (depending on organization size)

Four Application Categories

Applicants must select ONE category that best fits the organization's services:

Category I: Improve the Administration of Justice

For organizations tangential to the legal system

Seek to have direct, secondary, or eventual beneficial impact on legal processes

Generally do not employ lawyers

Category II: Provide Legal Services (LSC-Funded Model)

Organizations partially funded by Legal Services Corporation

Employ staff lawyers

Provide free civil legal assistance to indigent clients

Coordinate pro bono services from private practice lawyers

Category III: Provide Legal Services (Staff Attorney Model)

Organizations that employ staff lawyers

Provide free civil legal assistance to indigent clients

Category IV: Provide Legal Services (Pro Bono Model)

Organizations that coordinate services of private practice lawyers

Provide pro bono service to indigent clients

Application Submission Tips

• Draft separately: Write responses in a separate document first, then copy and paste into application fields to prevent loss of work if you must leave the page before submitting
• Proofread carefully: All applications should be proofread by someone other than the grant writer
• Provide clear detail: Narratives should be concise but comprehensive
• Answer comprehensively: Address all aspects of each question
• Align with funding sources: Clearly show how IOLTA funds align with other funding sources

Technical Support

• For issues with the grant management portal, email: info@tnbarfoundation.org
• Foundation staff will respond as quickly as possible
• If experiencing technical difficulties with submission, the Foundation will evaluate requests to submit after the deadline on an individual basis
• Applicants should make every effort to address questions ahead of deadline

Contact for Application Questions

Phone: (615) 242-1531 or (800) 634-2516
Email: info@tnbarfoundation.org

Grant writers uncertain about IOLTA funding parameters or unsure which application format to select are urged to call Foundation staff before submitting.