March 12, 2009

Foreclosure Cases and Drop in Giving Add to Legal-Aid Charities' Recession Woes

By Paula Wasley

While most social-service charities are feeling the dual impact of rising need and declining contributions, legal-aid societies in particular are reeling from sudden and severe drops in income. Most legal charities rely heavily on money from a special fund — one that collects interest from the money lawyers hold in escrow for their clients, such as during a real-estate transaction.

Two years ago, when interest rates were at 5 percent, legal-aid groups received more than

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