idas: what are they and who can you partner with?

www.oregonidainitiative.orgwww.neighborhoodpartnerships

.org

IDAs: What Are They and Who Can You Partner With?

www.oregonidainitiative.org

Why IDAs?What are IDAs? What is the Oregon IDA Initiative?

•History & Structure• Funding – State Tax Credit• Impact and Evaluation

How do I connect with the Oregon IDA Initiative? What’s next for Oregon IDAs?

Presentation Overview

IDAs = Individual Development Accounts


Why IDAs?


What are IDAs?IDA = Individual Development AccountsMatched Savings Accounts•Typically at 3:1 rate

Available Asset Classes:•Homeownership•Education•Microenterprise•Home Repair/Renovation•Assistive Technology



What are IDAs? – Account Requirements


6 month minimumMinimum deposit of $25/monthlyMaximum match available $3000/yearFinancial and Asset Specific EducationPersonal Development Plan


Who qualifies for a state IDA?Oregon ResidentAt least 12 years oldWithin Income Limits by County

•2015 Multnomah County = $41,200 for 1 personNet Worth less than $20,000Commit to:

•6 months minimum saving, $25 min/month, fin. ed. and asset specific ed., other program requirements.



Oregon IDA Initiative Graduate

“Averages” Typically Matched: 3:1 Average Savings: $1720 Average Match:$4720 Average Time: 19 Months “Graduation” Rate: 64.5%


Created in 1999 by State Legislature 2001 – Tax Credit shift from 25% - 75% 2003 – NP partners with Initiative 2007 – NP leads Initiative management 2007 – Home Repair + Assistive Technology

added … 2015 – Tax Credit renewed at 70%, new

asset classes added

Oregon IDA Initiative


Donors = Individuals and Businesses

Up to 70 cents on every dollar donated• $10,000 donation = $7,000 tax

credit

$7.5 million in state expenditure available annually

Oregon IDA Tax Credit Overview

Use budget Know credit score

Keep emergency

fund

Deposit to savings acct

Deposit to retirement

acct

0%

10%

20%

30%

40%

50%

60%

70%Graduates Non-completers

One year after exit, more graduates report practicing good financial habits ‘often’ than participants who did not complete their IDA.In both groups, a minority report that they make deposits into a savings account 'often'.


Survey respondents said: Concrete impact:

“I have a house!” “It helped me start my business…has brought me the most

financial stability I’ve ever had.” “I am no longer in debt and my credit score significantly

increased”Changed behaviors:

“I now have a little nest egg for when things in life accidentally happen. I feel more secure about my future and don't worry as much about money ”

“I learned I can save, create goals, and make them happen.”

OREGON IDA INITIATIVE’S IMPACTS:PSU’S REGIONAL RESEARCH INSTITUTE EVALUATION


Longer term impacts“…realizing the impact that even saving $20/month can have over time. I have gained the confidence, courage to branch out.”

“My house helps me become a better neighbor and creates a legacy for me to pass on generationally”

“I am thrilled to have earned my master's degree, which has afforded me greater self-esteem and provided a good role model for my daughter.”



OREGON IDA INITIATIVE’S IMPACTS:PROJECT IMPACT INTERVIEWS

Having means, means a whole lot

Hope in ChangeDancing to the beat of your own IDA


What’s next?Data Roadshows -

https://oregonidainitiative.org/roadshow/

New Tax Credit MechanismExpansion to Allowable Asset Purchases:

Rental of a primary residence*Hiring employeesPurchase of AutomobileRetirement SavingsCredit as Asset

Innovation, evolution, and linkages




Jessica Junke, Director of Economic OpportunityOregon IDA InitiativeNeighborhood Partnerships(503) 226-3001 ext. [email protected]

www.oregonidainitiative.orgwww.neighborhoodpartnerships.org

idas: what are they and who can you partner with?

Government & Nonprofit