Neighborhood Partnerships

Individual Development Accounts (IDAs) are a matched savings program that help low and moderate-income families purchase assets such as a home, a post-secondary education, or the capital needed to start or expand a small business.  Neighborhood Partnerships brought Amy Shir—an expert asset building consultant—to present strategies to increase participant recruitment and retention to forty of Oregon’s IDA providers in June.

Ms. Shir recommended developing a recruitment strategy that maps out plans for the year including the target numbers of inquiries, applications and enrolled savers each quarter. Many of Ms. Shir’s recommended recruitment strategies are common sense approaches such as:

Reaching potential IDA savers though major employers of traditionally low wage workers such as hospitals, hotels, big-box retailers, restaurants, cleaning services, and sports and entertainment venues;

Reaching IDA savers by partnering with affordable housing programs, Small Business Centers, tribal organizations, Community Action Agencies, Head Start, vocational schools, or Refugee Resettlement Programs; and

Targeting low and moderate-income families who get their taxes prepared through Volunteer Income Tax Assistance programs, and encouraging new enrollees to save part or all of their Earned Income Tax Credit refund.

Ms. Shir also reminded those in attendance that a well planned retention strategy saves time and money for IDA providers in the long run. Ms. Shir recommended retention strategies such as:

Offering alternatives to participants physically having to go to the bank to make monthly deposits such as direct deposit, mail-in deposits, and ATM deposits;

Staying in touch with participants during the savings period through initiatives like Savers Club meetings, quarterly budgeting check-ins, electronic newsletters and Facebook groups, text message reminders to save, and sending monthly progress statements to savers;

Offering focused asset-specific resources to participants such as peer networking events for microenterprise IDA savers, campus tours and financial aid seminars for education IDA savers, and home tours for home ownership IDA savers;

Making financial education training as flexible and accessible as possible by offering perks for training attendees such as a convenient location, bus passes or other transportation support, multiple scheduling options, childcare, food, and interpreters if appropriate;

Encouraging prospective participants on waiting lists to start saving prior to enrollment since pre-savings can make it even easier for participants to reach their goals; and

Working with participants on credit repair as soon as they apply to the program to avoid unanticipated delays once the participant has met his or her savings goal.

Above all, Ms. Shir stressed flexibility, creativity and the importance of tailoring each IDA program to meet the diverse and changing needs of savers.  Click here to see Ms. Shir’s full PowerPoint from her June presentation. NP’s next IDA provider training will cover strategies for providing financial education to adult learners.  Email Haley Cloyd for more information.

Neighborhood Partnerships is proud to oversee the administration of the Oregon Individual Development Account (IDA) Initiative.  IDAs are matched savings accounts that help low and moderate income Oregonians purchase assets, such as a first home, that build economic security.  Participants can also use their IDAs to start or expand a small business, get more education, repair an aging home, or purchase equipment or technology needed to work.

We’ve contracted with the Regional Research Institute at Portland State University to do a multi-year evaluation of the IDA Initiative.  PSU’s objectives are to track and report program performance and results, capture the IDA Initiative’s impact on participants, and support ongoing program improvement.  Their preliminary research results are impressive!  Click here to see preliminary results released in June of 2009.

Graduating participants explain that participating in the IDA program has changed their lives in concrete ways:

“I have a house!”

“It helped me start my business and has brought me the most financial stability I’ve ever had.”

“I completed college and am now a teacher.”

PSU’s evaluation is also finding that IDAs change behaviors.  Graduating participants reflect:

“I am more organized and use a budget.”

“I learned to treat a savings account like a bill.”

“Taught us we can save if we put our minds to it.”

After graduating from the IDA program the percentage of participants who report being satisfied or highly satisfied with their financial status increases from 46% to 82%.  Forty-eight percent of graduates report reduced debt, and 46% report increased income.  Graduating participants are also significantly more likely to maintain emergency savings funds and track their personal finances using a budget.

PSU’s evaluation is also finding that IDA program graduates set new savings goals for themselves after purchasing their assets through the IDA program.  After completing the program graduates continue to save for emergencies, to purchase or improve a home, for family vacations, for retirement, or for education.  Encouraging participants to establish a lifelong savings habit is a program outcome we’re especially proud of!

In addition, a year after exiting the program, participants’ financial behaviors have changed:

55% often use a budget to monitor expenses.

46% maintain an emergency fund.

33% are regularly making deposits to savings.

A year after completing the program participants also report significant changes in their lives such as:

“I found it incredibly helpful.  I would have really struggled in this economy if I hadn’t worked with this program.”

“I thought this was an awesome experience.  I would love to participate again.  What I learned about budgeting I still use today.”

“Stability, my children are very happy and proud to own their home.  I feel I can do whatever I want in life.  My next goal is to go back to school and get more education.”

Full evaluation results from Portland State University will be available later this year.  We look forward to sharing those results with you in the coming months!

Learn more about the IDA Initiative!

With the help of Oregon’s Individual Development Account (IDA) Initiative, low income Oregonians are given the tools to build their financial security through financial education classes and matched savings incentives.  With the money saved, IDA participants purchase a major asset such as a home, post-secondary education, a small business, or assistive technology that helps them secure employment. These assets help build economic stability and put money back into Oregon’s economy.

William Sherfield is one such Oregonian. He enrolled in Umpqua CDC’s Dream$avers program two years ago. Due to his medical issues, William needs his wheelchair most of the time. William expressed to the Dream$avers staff his desire to get back to work and be out among people. In order to accomplish this goal, he needed a vehicle that could accommodate his wheelchair.

Before the Dream$avers program, if William wanted to get around he had to have someone with him to set up a makeshift ramp so he could maneuver his electric wheelchair in and out of their vehicle.  While William was participating in the Dream$avers program, his brother purchased a septic tank cleaning business, and wanted William to be the one to take care of the books.  The one barrier was that the business didn’t have a vehicle that could transport William.

Thanks to the Dream$avers IDA Program, William was able to save for and purchase a handicap accessible van.  “This allows me to go and work and be independent,” says William.  “My brother just bought a business and is going to hire me to do his books, so this is going to help me and my brother, isn’t that great!” William is now totally self-sufficient, employed and enjoying his new-found independence.

“I would like to thank everyone for what this has done for me and everyone I know.  So thank you very much.” William’s story is a great example of how the IDA program can help Oregonians achieve their goals!

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!

Throughout the state of Oregon, Neighborhood Partnerships works to create opportunity for low and moderate income families through the Individual Development Account (IDA) Initiative. The IDA Initiative is a matched savings program that helps hard working Oregonians build economic security by teaching savings habits that help them purchase a first home, start or expand a small business, or pursue higher education. Federal policies that facilitate and encourage savings are essential for supporting the important asset building work that’s happening here in Oregon.

We moved a step closer to that goal last night.

President Barack Obama mentioned expanding matched savings accounts in last night’s State of the Union address . His proposal aligns with the Savings for American Families’ Future Act (H.R. 1961), which would extend retirement savings incentives to more than 50 million Americans by improving and strengthening the existing federal Saver’s Credit.

President Obama’s proposal couldn’t come at a better time. Today only half of American households (52%) have a retirement savings plan, and if you look at households of lower income workers, you’ll see that low income workers are much less likely to save for retirement than their higher income counterparts. Social Security is the sole source of income for one in five Americans age 65 and older. For one in three seniors, Social Security represents almost all of their retirement income (more than 90%).

Savings for American Families’ Future Act will enhance the effectiveness of the Saver’s Credit by:

• Making the Saver’s Credit refundable. The current credit only applies to families with a federal income tax liability. One in three (35%) households do not pay federal income tax in a given year because their incomes are too low. While these families pay plenty of taxes, federal law only recognizes federal income tax when providing a Saver’s Credit match.
• Providing a flat 50% match on qualified contributions up to $500 for an individual or $1,000 for a couple. The proposal also calls for annual increases of $100 for single filers and $200 increases for joint filers through 2020.
• Increasing the income eligibility requirement to $65,000 for joint filers, $48,750 for head of household, and $32,500 for single filers.
• Automatically depositing matching contributions into a designated retirement account.

Oregon Representative Earl Blumenauer has shown leadership on this issue and has co-sponsored the Savings for American Families’ Future Act. You can also find out more about this issue from CFED.

Individual Development Accounts are a proven, effective tool for building hope and stability.  In the 2008 calendar year, NP raised $4.5 million in donations for this program through the IDA 75% Oregon Tax Credit which creates a pool of match funding for participants that complete financial education and asset specific training.  Every dollar they save toward their goal is matched by three dollars of tax credit funds.  Thanks to the Oregon IDA Initiative’s strong network of community partners & the resources provided through the IDA Tax Credit more than 1100 individuals throughout Oregon have met their savings goals and purchased their asset. With your help we can increase these numbers in 2010!

IDAs build long term life skills.  According to research conducted by Portland State University’s Regional Research Institute, twelve months after purchasing their asset 59% of participants often use a budget to monitor their expenses and 41% are regularly making deposits to their savings.

You can make a difference!  By donating to Neighborhood Partnerships before December 31^st you can help hard working Oregonians develop long lasting life skills and launch a new business, gain access to higher education or purchase a new home.  But time is running out!  The 2009 75% IDA Tax Credit expires this Thursday. 75% of every dollar you contribute before December 31^st will come back to you as a state tax credit. That’s like only paying $25 to give $100!  Plus, over 95% of your donation will go directly toward supporting the Oregon IDA Initiative.

To learn more go to http://ida.neighborhoodpartnerships.org or call Cynthia Winter at 503-226-3001×101.  Call today!

Individual Development Accounts (IDAs) help low income Oregonians build greater financial security by matching monthly savings toward the purchase of an asset. The assets purchased – such as a first home, a post-secondary education, or a small business – help build financial stability and enter the economic mainstream. In addition to offering incentives, the Oregon IDA program supports participants in building new skills and habits as well as consumer savvy by requiring them to take financial education along with asset-specific classes like “Home Buying 101.”

Cheryl Lohrmann is one of many successfully Oregon IDA program graduates. In 2005 Cheryl took the Home Buying 101 class at the Portland Housing Center and learned about the steps she needed to take to purchase a home. She also took a Financial Fitness course and met with a home ownership counselor. She began putting money in a savings account every month. In 2006 Cheryl enrolled in the Oregon IDA program, after which her savings were matched 3 to 1. After three years of saving, Cheryl moved into her new home this fall! She reports continuing the habit of setting aside money in a savings account each month.

Cheryl’s story – and the stories of 1,000 plus graduates just like her – demonstratives the effectiveness of Oregon’s IDA program. Preliminary results of multi-year evaluation being conducted by Portland State University (PSU) confirm this. PSU’s evaluation has found that among Oregon IDA graduates overall satisfaction with their financial status increased from 44% at enrollment to 78% at graduation, while the number who keep up a habit of budgeting grew from 31% at enrollment to 68% at graduation.

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