Neighborhood Partnerships

Neighborhood Partnerships and Oregon Housing and Community Services are proud to announce the award of $4.397 million to six nonprofit agencies by the Oregon Individual Development Account (IDA) Initiative.

Through the IDA Initiative, low income individuals work with a local nonprofit organization to set a financial savings goal.  Participants save to purchase their first home, start a small business, access higher education, repair a substandard home, or purchase equipment that will help them obtain employment.  Once they have completed financial education classes and met their savings goal, their savings are matched by funds from the Oregon IDA Initiative.

For 2010, funds have been awarded to six organizations serving 29 counties in our state.  They are:

CASA of Oregon, Newberg, $2.213 million
Entrepreneurial Development Services, Eugene, $133,275
Mercy Corps Northwest, Portland, $200,000
Native American Youth And Family Center, Portland, $200,000
Portland Housing Center, Portland, $185,000
Umpqua Community Development Corporation, Roseburg, $1.372 million

The Oregon IDA Initiative provides life skills and a path to a brighter future. The assets Oregonians obtain through the IDA program give them the ability to weather hard times, make a better future for themselves and their families, and build stronger communities. By coupling matched savings with financial education and other supports, the Oregon IDA Initiative fosters hope and opportunity.  Thanks to the great work of these partner organizations, over 1,200 IDA participants have already purchased an asset.  This year’s funding will allow approximately 750 more low income Oregonians to begin saving towards an asset goal in 2010.

The Oregon IDA Initiative is a unique partnership between Oregon Housing and Community Services, Neighborhood Partnerships, non-profit partners across the state, and the public. Individual and corporate charitable contributions to Neighborhood Partnerships, a 501(c)3 organization, are eligible for a 75% State of Oregon tax credit.  These contributions generate the match funds for IDA participants.  In 2009, Neighborhood Partnerships received $4,712,583 million in contributions from average Oregonians who wanted to make a difference and give back to their community.

To learn more about the tax credit and how you can be a part of this great work go to the IDA Homepage.

The Oregon Individual Development Account (IDA) Initiative will reach all corners of the state in 2010, thanks to the support of a wide range of Oregonians. Neighborhood Partnerships is happy to report that we received contributions over $4.7 million dollars to support the IDA Initiative.  In what was described as one of Oregon’s worst economic years in decades, we saw support for the Initiative increase by over $100,000 from 2008. Hard working Oregonians will benefit as they are supported by Initiative partners to increase their future financial stability and resilience.

Support for the Initiative has a broad base, thanks to the collective efforts of all our partners and donors. Nearly 30% of contributions came from donors giving between $50 and $1,000.

Over 95% of every dollar raised goes to support Oregonians seeking to start or expand a small business, pursue higher education, or purchase their first home. Every dollar a participant saves toward their goal is matched by three dollars of Initiative funds.  Thanks to the State of Oregon’s support of the Oregon IDA Tax Credit more than 1,200 individuals to date throughout Oregon have met their savings goals and purchased their asset. And, through the research collected by Portland State University’s Regional Research Institute, we know that IDAs are a proven, effective tool for building hope, stability, and life skills.  See the results of the PSU Survey.

Applications for 2009 IDA Initiative funding were received on January 14, 2010.  Six of our existing non-profit partners requested funds to broaden their IDA programs to reach underserved areas and populations in our state.  Thanks to your support we will be able to provide funds that will allow these organizations to help approximately 750 new participants start down the road to financial stability in 2010.  Neighborhood Partnerships and Oregon Housing and Community Services will announce grantee awards in early February.

And remember—it’s never too early to make your 2010 Tax Credit contribution.  There is no need to wait to the last minute when you can make your donation today!  For more information go to our IDA Homepage.  You can also download the 2010 Donor Form.

Thank you again for your support.  We couldn’t have done it without you!

Neighborhood Partnerships invites qualified organizations to become fiduciary organizations or to renew their status as fiduciary organizations in the Oregon Individual Development Account (IDA) Initiative.  Below are the documents necessary to complete the 2010 Oregon IDA Request for Applications.  Note that applications are due on January 14, 2010.

If you have any questions about the Oregon IDA application process please contact Joy Garlin Hunt.

2010_IDA_RFA

2010_OR_IDA_Review_Criteria

2010_OR_IDA_Work_Plan_Form

Yesterday, Neighborhood Partnerships and Oregon Thrives, in conjunction with the national Corporation for Enterprise Development (CFED) released its 2009 – 2010 Assets & Opportunity Scorecard. The Scorecard gave Oregon a “C,” and highlighted areas for improvement in Oregon. To help more Oregonians, the state could expand the refundable earned income tax credit, remove asset limits for public benefits and help to promote and preserve homeownership.

Neighborhood Partnerships, as the leader of an emerging coalition, was offered the opportunity to release Oregon’s Scorecard for 2009-2010 this year by CFED. We held both a press conference, and a forum for advocates to discuss the results of the report and possible improvements to Oregon policy to improve the lives of hard-working Oregonians.

Oregon is doing well in important business and education matters but lags behind national performance in annual pay, extreme asset poverty and health care for adults, according to a report released today by the Corporation for Enterprise Development (CFED), a national economic nonprofit. The state earned a “C” on the 2009-2010 Assets & Opportunity Scorecard, with Oregon showing room for improvement in important financial assets and income measures, as well as health care.

Advocates at the press conference called for changes to three main policy areas:
• First, an expansion of the refundable earned income credit. The state should increase the value of the Oregon credit to 18% of the federal credit.
• Second, the state should increase access to and ensure access to foreclosure prevention services, as well as safe, affordable mortgage products.
• Third, Oregon should remove asset limits for public benefits.

You can learn more here:
• Download the Press Release 9.21.2009
• Download Oregon’s scorecard for 2009-2010,
• Visit the CFED website for detailed information about each of the issue areas.

Thanks to everyone who attended the forum and the press conference – both were a huge success! We’re excited to move forward building a strong coalition to improve the lives of all Oregonians. Check back soon for more updates, and links to media coverage.

There is a long held myth that low income individuals cannot save money.  However, the Oregon IDA Initiative is proving otherwise.  Individuals Development Accounts, or IDAs, are a matched savings program that builds the financial management skills of low income Oregonians while they save towards a goal – homeownership, business development, higher education, or an employment opportunity. IDAs support movement out of poverty, encourage wealth creation in low income communities, and provide models for economic success to individuals and their communities. IDAs are an important tool for building personal assets and wealth, providing access to financial education, banking the unbanked, and supporting entrepreneurship and business development.

This summer we will celebrate our 1000th graduate from the Oregon IDA Initiative.  That’s exciting news and we’re gearing up for one heck of a party!  But what’s even more exciting is what we are hearing from these graduates after they leave our program.  First – a little background.  To participate in the IDA Initiative an individual must be a member of a low income household.  To give you an idea, an individual living in Marion County could not earn more than $31,800 a year and could not have more than $20,000 in assets (excluding their car and their home),.  They must also agree to complete a series of classes on financial education and classes specific to the asset they are saving for such as home buying classes.  While in the program they are required to make regular deposits to a savings account.  Once they reach their savings goal their savings are matched $3 for every $1 they saved!

Last January (2008) Neighborhood Partnerships contracted with Portland State University’s Regional Research Institute to conduct an outside evaluation of graduates of the Oregon IDA Initiative one year after purchasing their asset and completing the program.  While the normal return rate for such surveys is 20% at best, 30% of our graduates responded, and what they had to say was promising.

In the area of their financial wellbeing, participants report impressive results at graduation:

• Satisfaction with their financial status grew from 46% to 78%.
• “Very satisfied” grew from 7% to 26%!
• 45% reported reduced debt.
• 44% reported increased income.

Their ability to make regular deposits to savings grew from 23% to 65%, and nearly 70% of program graduates reported using a budget to monitor their monthly spending.

The other exciting news, we are seeing is that OR IDA Initiative graduates are now able to plan ahead for both good times and bad.  One year after program graduation, the OR IDA Initiative graduates reported lasting changes in their financial lives:

• 59% often use a budget to monitor expenses.
• 41% regularly make deposits into a savings account.
• 34% were saving for a vacation (something that often is put on a credit card).
• 27% were saving to purchase or improve their home.
• 25% started an IRA account

In addition to its positive impact in the lives of individual Oregonians, the OR IDA Initiative is changing communities for the better. Since 2003, the Initiative has helped to start or expand 359 locally owned small businesses in Oregon and helped 212 Oregonians from all parts of the state obtain post secondary educations. Better access to education and the jobs that small businesses help create have broadly felt positive impacts. In addition, the Initiative has helped 413 Oregonians become first time home buyers.

These are encouraging results and go to show that even those with little income are willing and able to save in order to build a better future for themselves.  The matching funds provide the incentive they need to purchase their assets and move into the middle class.  It’s a small investment with a big return.  Stay tuned as we await future results from our grads.