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, and the Governor's Office. 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
Civil Legal Services to the Low-Income: 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 the low-income. In the past, these grants have concentrated on such high impact clients as the low- income victims of domestic violence, the elderly, and children. Funds have also been made available to assist with administering local and state bar pro bono and 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.

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. Programs that have previously received funds have been:

Project Early Dispute Settlement (Olathe) and the neighborhood Justice Center (Wichita Bar Association) which use volunteer mediators to resolve minor disputes between people with ongoing relationships; The Topeka, Johnson County, and Hays CASA (Court Appointed Special Advocates) programs and the Kansas Association of CASA Programs have received funds to support their programs of using volunteers in the juvenile justice system. The Foundation has encouraged one combined grant from all the CASA programs.

There have been other grants approved for innovative one-time projects aimed at reducing juvenile crime or experimenting with diversion efforts. Other grants have been used to establish peer mediation or teen courts in Kansas schools and courts.

ELIGIBILITY STANDARDS
The Kansas Bar Foundation has set certain criteria for those organizations wishing to apply for IOLTA funds.

• The applicant must be a 501(c)(3) tax-exempt organization. Some consideration will be given to local bar associations which are 501(c)(6) organizations if the project is charitable in nature.
• The applicant must agree to an audit or a review of their expenses if requested by the Foundation.
• The applicant must provide quarterly and year-end reports detailing how the funds were used and who benefited from them.
• Applicants will be required to demonstrate fiscal responsibility, program stability, and an ability to ensure the effective and efficient delivery of quality services.

PROPOSAL GUIDELINES
The following guidelines will be used in deciding which grants are made with IOLTA funds.

Goals:
Grant applicants shall indicate how their request meets one or more of the purposes listed by the Foundation for use of IOLTA funds.

Methodology:

• Applicants must state the methods they use to meet their goal and the timetable in which they expect to achieve results.
• Applicants should indicate their prior track record in operating similar projects and the sources of other income to support this grant request.
• Applicants should describe how to evaluate the purposes for which the funds will be used.
• Programs using local bar volunteer lawyers will be encouraged.
  Priority will be given to applications requesting funds for direct services to the public. The provision of those services shall be broken down into stimated cost per direct service, if possible.
• The Foundation will make every effort to distribute IOLTA funds evenly throughout the state according to population.
• Any "experimental" project shall have statewide transferability and be innovative in nature. Applicants funded through this program will be required to provide information to other organizations interested in duplicating their program in other areas.
• Additional consideration will be given to projects that work cooperatively with other grantees within the state.

Budget:
Consideration will be given to applicants who do not duplicate existing services or funds.

• Applicants shall indicate the source of all of their program's funding. The Foundation encourages applicants to search for additional sources of project income. Added consideration will be given to such programs.
• If the applicant is reapplying for funding, they will need to indicate how much they received in the last year they received funds. This information will be used for purposes of comparison with their current request.

Evaluation:
The Foundation reserves the right to require quarterly reports from IOLTA grant recipients. Consideration will be given to smaller applicants for a midyear and a final report. Single event projects will be exempt from quarterly reporting. The report will be due at the end of the event.

Quarterly and final reports should include:
a) description of the use of IOLTA funds to date;
b) a breakdown of the amount of funds expended;
c) the statistics regarding the number and types of people served;
d) copies of any publications or work products; and
e) any comments or suggestions.

Programs can expect to be visited once during the grant year to in-sure that they are in compliance with the grant contract. These visits will be conducted by staff, board, consultants, and/or personnel of similar projects. Evaluation visits will consist of interviews with staff and/or board members and a review of how funds are being used. A method of determining client satisfaction is also encouraged.

The Foundation reserves the right to withhold quarterly payments if a program is found not to be in compliance with its grant contract.

Attachments:
a) 501(c)(3) tax-exempt letter from the Internal Revenue Service;
b) last year's final report, if you have previously received IOLTA funds;
c) a list of board of directors (please indicate officers and any affiliations);
d) applicant's current fiscal year budget; and
e) any support letters.