NC IOLTA report to the North Carolina State Bar Council annual meeting [2018 : October]

Elizabeth L. Quick, Chair Winston-Salem, North Carolina Kerry A. Friedman, Vice-Chair Asheville, North Carolina Anita R. Brown-Graham Chapel Hill, North Carolina Sidney S. Eagles, Jr. Raleigh. North Carolina Jane V. Harper Charlotte, North Carolina Steven D. Michael Southern Shores, North Carolina Maria Misse Ahoskie, North Carolina Robert A. Wicker Greensboro, North Carolina Edward C. Winslow 111 Greensboro. North Carolina Mary L. Irvine Executive Director mirvine@ncbar.gov NC IOLTA The North Carolina State Bar Plan For Interest on Lawyers’ Trust Accounts 217 E. Edenton Street • P.O. Box 259% • Raleigh. N.C. 27611-5996 919-828-0477 • FAX 919-821-9168 • E-mail IOLTA@ncbar.gov NC IOLTA Report to the North Carolina State Bar Council Annual Meeting, October 2018 Income Interest income generated on lawyers’ trust accounts (participant income) is the North Carolina IOLTA program’s primary source of revenue. NC IOLTA, like many IOLTA programs across the country, monitors participating banks that hold IOLTA accounts for compliance with the State Bar’s rules related to IOLTA accounts. Adopted in 2010, the State Bar’s comparability rule requires banks to pay the highest interest rate generally available to non-IOLTA accounts with similar account requirements. This spring, IOLTA began reaching out to banks to review available products to ensure IOLTA receives the highest rate available under the comparability rule. If the interest rate environment continues to improve, we anticipate the results of this ongoing effort will yield significant additional funds available for bolstering IOLTA’s reserve fund and increasing grantmaking over the next few years. Participant income through August of 2018 from participating financial institutions increased by 34% compared to last year. Interest income received in August of 2018 was 87% more than that received in August of 2017. Grants 2019 grant applications were due on October 1, 2018. The Boai'd of Trustees will review 2019 grant applications and award grants at the November grantmaking meeting. The IOLTA Board of Trustees met on October 15 for IOLTA’s long range planning meeting, rescheduled due to Hurricane Florence. During the meeting, the Board approved two off-cycle grant awards for collaborative projects to serve victims of Hurricane Florence. The grant awards total $226,600 and will be funded by the Bank of America settlement as well as a $50,000 grant received by IOLTA from a private foundation to support IOLTA’s disaster legal services grantmaking. State Funds In addition to its own funds, NC IOLTA administers the state funding for legal aid under the Domestic Violence Victim Assistance Act on behalf of the NC State Bar. In 2017- 2018, NC IOLTA distributed $1,060,596 in domestic violence state funds. The General Assembly appropriated an additional $100,000 to Pisgah Legal Services for veterans’ legal services that NC IOLTA also administered. In the 2018-2019 state budget, the General Assembly again appropriated $100,000 for Pisgah Legal Services’ veterans project. No changes were made to domestic violence funding administered by the State Bar. To date, NC IOLTA has administered $257,019.88 in domestic violence state funds for 2018-2019.