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Nonprofit Newswire | New Jersey Legal Aid Account Plummets with Housing Market slowdown

Ruth McCambridge
July 30, 2010
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July 29, 2010; Source: NorthJersey.com| No one can ever say that nonprofit revenue sources are not complex and confoundingly unreliable sometimes. In New Jersey, the total in the Interest on Lawyer’s Trust Fund account that funds legal aid has fallen as real estate transactions have slowed. There is quite simply less in escrow to throw off interest—more than $1 billion less to be exact and this has reduced the revenue into the fund from $50 million in 2008 to $10 million in 2009 where it is expected to level out for this year. That’s right, folks—an 80 percent drop in funding in an environment in which the need for legal representation has increased significantly. The article says the reductions in funding have led to layoffs of legal staff and fewer people served.—Ruth McCambridge

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About the author
Ruth McCambridge

Ruth is Editor Emerita of the Nonprofit Quarterly. Her background includes forty-five years of experience in nonprofits, primarily in organizations that mix grassroots community work with policy change. Beginning in the mid-1980s, Ruth spent a decade at the Boston Foundation, developing and implementing capacity building programs and advocating for grantmaking attention to constituent involvement.

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