What's an IDA?

I asked the same question the first time I saw IDA.  Did someone misspell IRA???

 An IDA is an Individual Development Account and it is an initiative the state of Oregon kick off a few years ago through The Neighborhood Partnership Fund.  The fund lists three main goals:

1. Oregon’s communities will thrive while meeting the housing needs of all residents.
2. Low income Oregonians will have increased opportunities to succeed in school and life. Success will be maximized by an infrastructure of interwoven housing and services provided by a vibrant network of community development organizations.
3. Low-income Oregonians will increase their household financial resources and stability. NPF will work with partners to build individual, family, and community social and financial assets. 

The primary goal behind the IDA is to help low income individuals and families start a business, education or skills training, or to purchase their first home.  The savings in the IDA are matched at a rate of 2:1 or 3:1!  How is this possible you say? 

The state of Oregon has initiated a tax credit for donations to the NPF at the rate of 75%!  Plunk down a thousand dollar donation to the NPF, and you’ll get to write off $750 from your Oregon state taxes!  (Footnote: I’m not a tax professional, don’t listen to me.  I’m just reading their site.)  These donations then fund the savings matching. 

How does this apply to credit unions you say?  Well besides helping low income families, and besides helping our membership save, and besides helping our more affluent members get a tax break,

"Once eligible low-income participants have met program criteria, they open their IDA at a local bank or credit union. They work with program staff from a qualified social service organization to set up a savings schedule and ultimate savings goal."

Sounds like a perfect fit for credit unions.   

About the IDA (the NPF site)