This document discusses Individual Development Accounts (IDAs) and the Oregon IDA Initiative. It begins by explaining what IDAs are, which are matched savings accounts that help low-income individuals save for assets like homeownership, education, or starting a business. It then describes the Oregon IDA Initiative, a state program that has partnered with organizations since 1999 to provide IDAs and financial education. Evaluation findings show graduates of the program have higher savings rates, improved credit scores, and feel more financially secure compared to non-completers. The document concludes by discussing the initiative's impacts and future plans to expand eligible asset purchases.
2. 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
9. www.oregonidainitiative.org
What are IDAs? –
Account Requirements
IDAs = Individual Development Accounts
6 month minimum
Minimum deposit of $25/monthly
Maximum match available $3000/year
Financial and Asset Specific Education
Personal Development Plan
10. www.oregonidainitiative.org
Who qualifies for a state IDA?
Oregon Resident
At least 12 years old
Within Income Limits by County
•2015 Multnomah County = $41,200 for 1 person
Net Worth less than $20,000
Commit to:
•6 months minimum saving, $25 min/month, fin. ed.
and asset specific ed., other program requirements.
IDAs = Individual Development Accounts
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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
19. 0%
10%
20%
30%
40%
50%
60%
70%
Use budget Know credit
score
Keep
emergency
fund
Deposit to
savings acct
Deposit to
retirement acct
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'.
20. www.oregonidainitiative.org
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
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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:
PSU’S REGIONAL RESEARCH INSTITUTE
EVALUATION
24. www.oregonidainitiative.org
What’s next?
Data Roadshows - https://oregonidainitiative.org/roadshow/
New Tax Credit Mechanism
Expansion to Allowable Asset Purchases:
Rental of a primary residence*
Hiring employees
Purchase of Automobile
Retirement Savings
Credit as Asset
Innovation, evolution, and linkages
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Jessica Junke, Director of Economic Opportunity
Oregon IDA Initiative
Neighborhood Partnerships
(503) 226-3001 ext. 109
jjunke@neighborhoodpartnerships.org
www.oregonidainitiative.org
www.neighborhoodpartnerships.org
Notas do Editor
If don’t get through the program, if don’t have an asset, appear to be less likely to be engaging in these habits.
Currently do not ask non-completers at the time of exit how often they do these, or to reflect on how often they did them before.
Talk about ripple effects PSU has seen in evaluation of Initiative:
“The ‘ripple effects’ we found in participants’ responses to survey items and in the stories they shared reflect the broader and more far-reaching results for individuals, families, and communities. These effects speak to the importance of Oregon’s continued investment and the potential for the IDA Initiative to strengthen Oregon’s economy.”