Sept/oct 1996
Starting an IDA
For organizations thinking of starting an IDA program, the following steps
are recommended:
-
Form a workgroup that reflects the diversity of the organization.
-
Learn about the IDA concept, and the experience of current IDA demonstrations,
especially Eastside Community Investments (ECI), and Women's Self-Employment
Project (WSEP). The Corporation for Enterprise Development (CFED), has
published two excellent guidebooks, and a quarterly newsletter called Assets.
-
Hold focus groups for potential participants. Each focus group should have
a facilitator and a recorder.
-
Based on the recommendations of the focus group and the IDA workgroup,
develop clear guidelines for the IDA demonstration – for eligibility, usage,
matching rate, sponsoring financial institution (credit union or other
vehicle), withdrawal procedures, counseling, training, and technical assistance.
-
Keep the IDA program as simple as possible, and make sure it builds upon
the mission of CDCs, and supports some of the key initiatives, e.g. microenterprise,
homeownership, and skills-based training.
-
Aggressively market the IDA program through community meetings and forums,
staff meetings, other CBOs, churches, schools, and newsletters.
-
Offer economic literacy training seminars and programs on a regular basis,
ideally on a monthly basis with times that are convenient for participants.
-
Monitor and evaluate the IDA demonstration, and make changes that are appropriate.
-
Communicate on a regular basis with participants, CDC stakeholders, and
funders.
IDAs for empowerment
The Women's Opportunities Resource Center (WORC) is working with Pennsylvania
Governor Tom Ridge's Urban Development Team to design an IDA initiative.
The statewide program is proposed as a broad empowerment strategy to support
existing programs and initiatives that promote self-sufficiency.
The proposed IDA initiative would be available to all Pennsylvania residents, but would be especially useful in helping low-income people build assets. To stimulate savings, account holders would be expected to save $40 per month. The state would match this amount quarterly at a 50 percent rate. The program would allow individuals to save up to $2000 per year, but the state's match would be capped at $300 per year. Local agencies would be able to negotiate additional matching dollars from private and public sources. The IDAs would last for two years, limited to one per household at a time.
The program would also teach economic literacy and short- and long-term
financial management skills. Neighborhood organizations, such as CDCs or
churches, would inform individuals about IDAs and train participants in
their use.
For more information, contact WORC, 1930 Chestnut St, Suite 1600, Philadelphia,
PA 19103; 215-564-5500.
Back to article on IDAs
Back to September/October 1996 index.
