APRIL 2008Dear IDA Insights Readers:
During the last quarter, we celebrated our partnership with Entergy Corporation and our commitment over the last five years to IDAs in the Mid South. In January, we released a publication—Changing Lives: An Investment in the Mid South—outlining the Mid South IDA Initiative's work. This evaluation focused on the success and impact that the program has had in the region.
Four events were held in January throughout the region to celebrate the work of local IDA programs and Entergy's support of IDAs in the Mid South and Texas. Each event had stakeholders from the local community in attendance, those familiar and new to the world of IDAs—from funders and financial institutions to legislators. The co-host for each event was an outstanding local IDA organization. The program for each event featured a representative from Entergy who addressed why they committed to this initiative and gave a challenge for other organizations to get involved.
The highlights, though, of each of the four events were the testimonies offered from former or current IDA participants. They spoke about why they decided to participate in a program and what it meant to them. The participants also shared the impact their assets have had on their lives, whether it was a new home or continued education.
The locations selected for the four events were chosen because of the organizations’ work and commitment to the advancement of wealth-building tools. The events' co-hosts included:
Southern Good Faith Fund / January 9th / Pine Bluff, AR
Southern Good Faith Fund offers one of the oldest IDA programs in the region and houses the statewide asset building coalition for Arkansas. Their advocacy work is a tremendous benefit to the citizens of Arkansas. They are also one of five groups participating in a national demonstration on child accounts.AJFC Community Action Agency / January 10th / Natchez, MS
AJFC is demonstrating success in Natchez by using new construction in addition to available housing stock for IDA participants who wish to purchase a home. This solid program is one of the first in Mississippi to receive federal dollars and—while relatively new—is a great example of a quality program.United Way of the Greater New Orleans Area / January 15th / New Orleans, LA
Similar to the United Way of America in its success with IDAs, the United Way of the Greater New Orleans Area is no different. The program uses both national and regional learnings to create a vibrant, new multi-parish program.Mississippi IDA Program / January 18th / Jackson, MS
The only statewide collaborative featured in the events, MIDAP is providing strong leadership to help sustain and grow both the concept of IDAs and IDA programs in Mississippi.If you would like to read the complete 23-page evaluation, download it from the FMS website >>> Changing Lives: An Investment in the Mid South.
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ADDITIONAL NEWS
IRS Sends Notices About Economic Stimulus to 130 Million Households!
Second Chance to Save!In early March, the Internal Revenue Service sent notices informing more than 130 million households that they may be eligible for an economic stimulus payment. The letters are part of an extensive outreach effort to alert people that they must file a 2007 tax return to receive the payment.
Organizations that serve people who have a disability or are elderly may wish to make sure their clients file their taxes in 2007 even if they do not need to file and do not expect a refund. The law stipulates that the rebate check may not to be considered in any federal benefits eligibility test.
Starting in May, millions of households will be receiving checks or deposits into their bank accounts of $300, $600, $1,200 or more. In most cases, the IRS will distribute the funds to the same address or account number that tax refunds were sent. Thus, people who file their taxes early and electronically will receive the payments sooner. If a split refund form (Form 8888) was used, the stimulus payment will be sent in check form only. Also, filers who received Refund Anticipation Loans will receive their payments via check.
The first transfer of payments will be made to those filers who received a refund via direct deposit. If a filer owes money or expects no refund, the payment can still be provided via direct deposit as long as the filer includes a routing number and account number on their tax return. Checks will then be sent out over a period of three weeks, or so.This economic stimulus creates the perfect opportunity for individuals to do split refunds. Split refunds allow you to deposit your refund in up to three separate accounts. Spilt refunding can be used as an additional savings mechanism.
For more information on the Economic Stimulus visit http://www.irs.gov/irs/article/0,,id=177937,00.html.
For more information on Split Refunds visit http://www.splitrefunds.net/._____________________________________________________________
Matched Savings Accounts Work!
Data Demonstrates Increases in Asset Building!The U.S. Department of Health and Human Services recently released two major studies on the ability of matched savings accounts to help low-income working families save, buy homes, pursue post-secondary education and start businesses.
The Assets for Independence (AFI) program’s Seventh Annual Report to Congress finds that Individual Development Accounts (IDAs) are successful at encouraging savings, building assets and moving low-income families into the financial mainstream.
In addition, a five-year Evaluation study found significant differences between AFI participants in comparison to similar non-AFI participants. Individuals and families who participated in an AFI project were 35 percent more likely to become homeowners, 84 percent more likely to become business owners, and nearly twice as likely to pursue post-secondary education or training.We want to hear from you. If your organization has applied for an AFI grant, please let us know. We would love to hear about and share the work you are doing in the asset development field.
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If you have any ideas for future IDA Insights issues, would like to feature news from your IDA program, or just want to say hello, please contact Tanya Ray at 601.863.0484 or at tray@fndmidsouth.org.
Sincerely,
Mid South IDA Initiative StaffVisit the Foundation for the Mid South's website!
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