Individual development accounts boost local economy. Fifty years ago this month, the Economic Opportunity Act was signed into law giving birth to community action. There are 1,100 across the country, including 17 in Oregon. NeighborImpact is Central Oregon’s community action agency. Community action organizations help low-income people and families move out of poverty and achieve economic stability through a variety of targeted programs such as Head Start, weatherization, energy assistance, job training and placement, financial education, housing and transportation.
One program that is contributing to economic development efforts in Central Oregon is the Individual Development Account (IDA) program. This matched savings program, which is made possible through an Oregon state tax credit, helps working-class households build assets through a monthly savings plan. Participants may save to purchase a home, create or expand a business, pay for higher education, rehabilitate their home or obtain technology to create or retain an employment opportunity.
“This is about boosting people’s lives and giving them opportunities to get out of poverty and succeed through life-long savings habits,” explains Lynne McConnell, associate director of HomeSource and assets.
The IDA program has helped dozens of local businesses become reality, including Fearless Bakery in Bend and Ballokai in Sisters. Bollakai owner Tracy Smith makes handmade pieces of art that merge with fashion and environmental sustainability, while Abby Jensen of Fearless Bakery celebrated her company’s one-year anniversary in May. Both owners utilized the IDA program to help save up the money they needed to kick-start their businesses. There are 100 people currently enrolled in the program and the local program has the highest graduation rate in the state.
“The IDA program is all about helping people realize their dreams,” said McConnell. “It’s so exciting for NeighborImpact to play a role in developing opportunities for people to contribute to our local economy.”
IDA clients participate in selected NeighborImpact and COCC courses depending on their savings goal, including financial skills workshops. When the client reaches his/her specified savings goal and has attended workshops and coaching sessions, every dollar saved is matched with $3.00 of tax credit funds. Enrollees who save $3,000 of their own money can graduate with $12,000 for their savings goal.
Since 1985, NeighborImpact has been a leader in developing solutions and bringing resources to Crook, Jefferson and Deschutes County. The agency offers a diversity of services meeting basic human needs for food and shelter, while enriching people’s lives by providing access to increased education, skills, and hope for the future. NeighborImpact is a private nonprofit organization that receives federal, state and local funding; foundation grants; and donations from individuals and businesses in our community.
To learn more about NeighborImpact please visit www.neighborimpact.org.
