1. By New Jersey Supreme Court Rule 1:28A dated March 1, 1988, New Jersey IOLTA program funds have been designated for use only as follows:

• Legal aid to the poor
  
  
• Improvement in the administration of justice
  
  
• Education of lay persons in legal and justice-related areas
  
  
• Such other programs for the benefit of the public as are specifically approved by the New Jersey Supreme Court from time to time

2. New Jersey Supreme Court Rule 1:28A authorizes grants from IOLTA proceeds, less reserve and administrative funds, to be allocated as follows:

• Not less than 75% to Legal Services of New Jersey, Inc.
  
  
• Not less than 12.5% to the New Jersey State Bar Foundation
  
  
• The balance of funds available to other entities deemed to be meritorious under the regulations of the Fund.

3. Specific additional criteria for the categories of activities stipulated in the rule are as follows:

• Legal aid to the poor - Projects delivering civil legal services to individuals and families with income eligibility of 175% of the current U.S. Health and Human Services Department poverty level; or legal services to client groups without resources for an attorney and which are composed primarily of people individually eligible for services as defined above, or seek representation in a matter which directly affects the interests of some or all low-income people.
  
  This category is distinguished by the characteristics of direct legal assistance to a client in a case if that aid is either (1) provided by an attorney, (2) provided by a non-lawyer under the supervision of an attorney, or (3) if such legal assistance is explicitly authorized by a government agency with authority to provide such authorization, or such assistance is already funded to some degree by the federal or state government.
  
  
• Improvement of the Administration of Justice - Projects promoting the improvement of the administration of justice by seeking to have a direct, secondary, or eventual beneficial impact on the state or federal judicial system, state or federal administrative agency processes, or other aspects of local, state or federal legal processes.
  
  
• Education of lay persons in legal and justice-related areas - Projects, using any form of communication, which enhance the public's understanding of local state or federal law, judicial systems, or other legal processes or enhance the public's ability to gain access to such systems or processes.

4. Grant-making decisions of the Board are final and are not subject to appeal or judicial review.

5. All grants will be for activities to be carried out within the State of New Jersey.

6. All grantees must be corporations or other entities exempt from federal and state taxes; no individuals will be funded.

7. All grants must be used exclusively for purposes set forth in R.1: 28A and grantees must have an accounting system which insures that all grant funds are so restricted.

8. Grantees must complete all required applications and forms, must supply all requested information, execute all required grant assurances, and complete all required reports.

9. Grantees and sub grantees must certify that programs funded by IOLTA conform to the representations made by the IOLTA Fund to the Internal Revenue Service.

10. Failure to comply with the Grant Assurances, reporting requirements, project proposal, and any other requirements specified by the Fund can result in a withholding or withdrawal of grant payments.

POLICIES SPECIFIC TO DISCRETIONARY GRANTS

11. All grants to entities other than Legal Services of New Jersey, Inc., and the New Jersey State Bar Foundation are discretionary, and are presumed to be non-recurring; there is no assumption or implication that a program will receive funds in the next grant cycle.

12. There are two categories of grants: basic, for amounts below $12,000, and major, for grants above that level. More substantial procedural, reporting, and auditing requirements will attach to major grants.

It is expected that a major grant will not exceed $150,000. Also it is expected that this amount may be awarded primarily to those applicants which meet the priorities specified below.

13. All applications for discretionary grants must be received by the IOLTA Fund of the Bar of New Jersey at its headquarters at the New Jersey Law Center, New Brunswick, no later than 5:00 p.m. on a date specified annually. Applications received after the due date and time will not be considered regardless of the source of the application or the merits of the application.

14. The following categories will be considered first in making grant decisions. In priority order, these are:

A. Programs which provide legal representation and assistance to low-income individuals

B. Programs which provide legal representation and assistance to client groups that are composed primarily of low income people

Programs in these two categories must demonstrate coordination with federally funded Legal Services agencies and mainly provide legal services beyond the capacity of the federally funded agencies. Private attorney involvement will be on a pro bono basis.

C. Programs which provide direct assistance and information to individuals or groups of individuals that have difficulty gaining access to the justice system or who need assistance in understanding the process of such access.

These programs will generally not provide legal representation, but must demonstrate that the clients served generally cannot provide the resources necessary to resolve their legal problems.

15. Reporting requirements for discretionary grants are:

A. FOR BASIC GRANTS ($12,000 OR LESS):

1. A narrative detailing what was accomplished by the use of the funds including the number of people served and a financial statement certified by the applicant's board chairperson and chief financial officer detailing the expenditures of all IOLTA funds received will be submitted 30 days after the completion of the project or grant period, whichever occurs earlier.

2. An annual audit, conducted in accordance with generally accepted auditing standards, with IOLTA income and expenditures reflected as a restricted fund or detailed in a supplemental schedule will be submitted no later than 90 days after the close of the fiscal year. If the organization does not conduct an annual audit, a year-end organization wide financial statement, with IOLTA grant expenditures detailed in a supplemental schedule, and certified by the Board chairperson and chief financial officer will be submitted no later than 90 days after the close of the fiscal year.

B. FOR MAJOR GRANTS (ABOVE $12,000):

1. Monies will be distributed to grantees on a quarterly basis - January, April, July, and October. Based on the proposed project, an alternate payment schedule may be negotiated.

2. A quarterly report in narrative form outlining the progress in achieving the goals of the grant, and a financial statement certified by the grantees financial officer or Board president detailing IOLTA income and program expenses.

3. 30 days after the end of the grant period, a narrative detailing what was accomplished by the use of the funds, including a description of progress made toward achieving the goals of the grant and a financial statement detailing the expenditure of IOLTA funds and certified by the grantees financial officer and Board president will be submitted.

4. An annual audit, conducted in accordance with generally accepted auditing standards, with IOLTA income and expenditures reflected as a restricted fund or detailed in a supplemental schedule will be submitted no later than 90 days after the close of the fiscal year.

C. All grantees will submit a copy of any material produced with the use of IOLTA funds.