What the Alberta Law Foundation Changes Mean — and Don’t Mean — for Other Nonprofits
Recent legislative changes affecting the Alberta Law Foundation (ALF) have prompted questions across the nonprofit sector. Here’s a brief overview of those changes and some important context.
Who is the ALF and what happened?
The ALF is a nonprofit that exists to “advance access and equity in systems of law” in Alberta (ALF, 2025). It was created by statute under the Legal Profession Act. Its mandate, governance structure, and funding mechanism are set out in provincial legislation specific to that entity. Because of this, the Legislature can amend its governing framework directly.
In 2025, the Government of Alberta passed legislation (Bills 39 and 14) that changed how ALF operates.
ALF is funded primarily through interest earned on lawyers’ pooled trust accounts (often called an IOLTA model). When lawyers temporarily hold client funds in trust, the interest generated does not go back to individual clients, it is directed by law to the Alberta Law Foundation to support access-to-justice work. This interest revenue makes up the Foundation’s core funding.
Previously, 25% of that interest revenue was required by law to be transferred to Legal Aid Alberta, with the remaining 75% available for ALF to fund grants such as legal education, law reform research, Indigenous legal initiatives, and community-based legal programs.
The 2025 legislation increased the mandatory portion going to Legal Aid to 50% of the interest revenue. It also required ministerial approval for large grants and gave the Minister authority over certain ALF bylaws and directives. Following these changes, there were board resignations, staff departures, and at least one publicly reported grant veto.
What this means for the sector
The ALF is an organization whose authority and role are defined in legislation and can be restructured through legislative change. Most nonprofits in Alberta are incorporated under general legislation such as the Societies Act or federal corporate statutes. That structural difference matters: while governments can amend laws, most nonprofits are not subject to the same type of organization-specific legislative changes that affected the ALF.
As always, the Nonprofit Chamber monitors legislative developments that affect the nonprofit sector and shares clear, practical analysis to help organizations understand what changes mean in context. Become a member and subscribe to our newsletter so you get that information delivered right to your inbox.