None. IOLTA only involves funds that a lawyer would not otherwise invest on the client's behalf because those funds would not produce net income over the cost of investing them.

By law, all lawyers who handle small amounts of money for their clients, or money that is held for a short period of time, must participate in the program.

They must open interest- or dividend-bearing trust accounts at Eligible Financial Institutions and deposit all small and short-term sums into these accounts. They also must report annually to the State Bar whether or not they held a client trust account (including IOLTA) at any time during the prior year.

Once the account is designated an IOLTA account, lawyers are not responsible for ensuring that the interest is accumulated and forwarded to the State Bar.

The financial institutions with which the funds are deposited are responsible for complying with the law, and the IOLTA Program is responsible for monitoring compliance.

The IOLTA Program is a department within the State Bar of California that administers IOLTA accounts, as well as two other sources of funding for free civil legal aid to low-income and indigent people: the California Equal Access Fund and the Greg E. Knoll Justice Gap Fund.

The State Bar initiated the IOLTA Program due to the lack of resources available for indigent clients who are in need of civil legal services. The substantial amount of money the program generates makes it possible for hundreds of thousands of these people to get the legal help that they need every year.

A 21-member Legal Services Trust Fund Commission appointed by the State Bar's Board of Trustees and the Chief Justice (on behalf of the Judicial Council of California) oversees the Trust Fund Program. Two-thirds of the commission members are attorneys and one-third are public members.

At least two of the 21 members must be "indigent persons" as defined by law. Three judges serve as non-voting advisors to the commission.

The Commission determines the eligibility of programs applying for funding, reviews recipients' budgets for compliance with the law, and monitors and evaluates the activities of programs receiving Trust Fund Program grants.

Because the amount the program collects varies depending on interest rates, grant distribution has ranged from a high accumulation of over $22 million in 2008 to a low distribution of grants of slightly more than $6 million in 2016.

More than 95 percent of the funds received are distributed in grants to legal services programs. All administrative costs are paid out of the funds received; no attorney fees or other State Bar income is used. Over the course of its 25-year history, the State Bar has used less than 5 percent of the funds received to administer the program.

The law and State Bar rules and regulations set out specific guidelines for distribution of IOLTA. First, 85 percent of funds available for distribution is allocated to counties based upon their share of the state's more than 6 million indigent persons.

Within the counties, 10 percent of the money is reserved for projects that use pro bono attorneys (attorneys who volunteer their services without pay) as their principal means of delivering legal services.

Money not distributed to pro bono projects is divided among all other "qualified legal services projects" in that county, according to a statutory formula that is tied to each program's previous year expenditures. In order to be a "qualified legal services project," an organization applying for money must be a nonprofit corporation and must, as its primary purpose, provide civil legal services without charge to persons who are indigent.

Qualified legal services projects provide legal aid in a range of substantive areas: housing, healthcare, education, public benefits, consumer law, disability rights, and more.

The remaining 15 percent of available funds (the portion that is not divided among the counties) is distributed to "qualified support centers," meaning organizations that, without charge and as their primary purpose, provide training, technical and advocacy assistance on cases and other support to attorneys and paralegals employed by qualified legal services projects, as well as private attorneys who have accepted pro bono referrals from a legal services project.

These funds are distributed equally to eligible support centers that serve programs around the state. As of 2017, 22 support centers share these funds.

Approximately 100 legal service programs statewide receive IOLTA grants to provide much needed civil legal services to the most under-represented communities in California whose basic human needs are at stake, such as shelter, sustenance, safety, health, or child custody.

Many of the programs specialize in meeting the legal needs of particularly vulnerable groups such as children, homeless people, migrant workers, immigrants, Native Americans, persons with disabilities, seniors, and the institutionalized.

Where you bank makes a difference! You can help generate more money for civil legal aid for low-income Californians by establishing and maintaining your IOLTA accounts at Leadership Banks, financial institutions that commit to offering favorable interest rates. Banking with a Leadership Bank is a great way for you to help support access to justice for low-income individuals in our state.