MLAC receives 67 percent of the revenue generated by the Interest on Lawyers Trust Accounts (IOLTA) program.
Under Massachusetts Supreme Judicial Court rules, an attorney holding funds on behalf of a client must place the funds either in an account that pays interest to the client or in a pooled IOLTA account. An IOLTA account is used only if the funds are relatively modest, or will be held by the lawyer for a short time, so that the interest earned would be less than the cost of setting up and maintaining a separate account. Though the individual amounts of interest are small; the interest from the combined IOLTA accounts is significant.
The Massachusetts IOLTA Committee, appointed by the Supreme Judicial Court, distributes IOLTA funds to three charitable entities: MLAC, the Massachusetts Bar Foundation, and the Boston Bar Foundation.