Contributor support of the Oregon IDA tax credit makes dreams come true across the state while building a stronger and more resilient Oregon.
As you may know, this has been a period of change for the Oregon IDA Tax Credit. Thank you for your patience.
Earlier this year, we tried a stock auction. Thank you to the more than 50 people who contributed $2 million at tax credit rates that ranged from 60% to 70%. We heard, in conversation with donors, CPAs, and financial advisors, that the auction process made it difficult to plan ahead and that the process itself was cumbersome.
We have changed the stock and mutual fund donation procedure to respond to that feedback.
The next opportunity to donate by stock or mutual fund will not be an auction.
New IDA Tax Credit Sale Details for Stock and Mutual Funds
We have developed a new process for stock and mutual fund donations for the Oregon IDA tax credit in 2016:
- $2.5 million worth of credits or remaining available credits (whichever is greater) will be available to stock and mutual fund contributors.
- The tax credit rate for all stock and mutual fund contributions will be 67% – there will be no auction.
- Beginning Sept. 7 at 8am an online form will be available to the public on our Oregon IDA Initiative website. Donors who would like to participate in donating stock or mutual funds will be required to complete and submit the online form to indicate how much they would like to contribute to the IDA tax credit. The form will “close” and be removed from online access at 5pm on Sept. 9. Forms submitted after 5pm on Sept. 9 will not be accepted.
- The submitted online form will act as a placeholder for your stock or mutual fund contribution. Entries will be counted on a “first come, first served” basis. If the amount you request in tax credits puts you over or partially over our tax credit capacity, you will be given the option to contribute a portion of your stock or mutual funds.
If you submit your online form before the deadline of 5pm on Sept. 9 and before all $2.5 million in credits (or the balance of credits remaining) has been claimed, we will contact you with the details to transfer your stock or mutual fund shares. If you did not make the cutoff you will also be notified via email.
Components of the Online Form
The form will be simple and should take less than 60 seconds to complete.
You will need to have ready:
- Donor name/company
- Donor email
- Donor phone number
- CPA/Financial advisor/Broker name (if applicable)
- CPA/Financial advisor/Broker company (if applicable)
- CPA/Financial advisor/Broker email (if applicable)
- CPA/Financial advisor/Broker phone (if applicable)
- Dollar amount you wish to contribute in stock or mutual fund shares (you will not need to give us number of shares or share symbols at this point). To account for market fluctuations, the dollar amount you actually contribute may be a couple of percentage points higher or lower than the amount you declared on the form.
The online form will be posted at https://oregonidainitiative.org/donate/stocks/ on Sept. 7 at 8am.
We will maintain an open dialogue throughout the process. Any questions and suggestions you have are welcome. In the coming years we hope to stabilize the stock and mutual fund donation process to make it more predictable and easier.
Please let us know if you have questions. We can be reached at 503-548-4475 or via email at firstname.lastname@example.org.
This week, Oregon Housing and Community Services, in cooperation with Neighborhood Partnerships, has finalized funding awards for the 2017-2018 program year for the Oregon Individual Development Account Initiative.
The Initiative invests in the personal and financial growth of individuals to build strong communities throughout Oregon. Individual Development Accounts, or IDAs, are matched savings accounts that build the financial capability of qualifying Oregonians with lower incomes while they save towards a defined goal. IDAs build pathways of opportunity and create models of economic success in Oregon communities.
The Initiative was created in 1999 by the Oregon State Legislature to bring state agencies, private non-profit and tribal partners, and private contributors together to create opportunity in Oregon. Oregon Housing and Community Services Department oversees the Initiative, in coordination with the Oregon Department of Revenue. The Initiative is managed by Neighborhood Partnerships.
With these awards, participants in all corners of the state will continue to benefit from matched funds to help them purchase a home, fulfill an educational goal, develop and launch a small business, restore a home to habitable condition, or purchase equipment to support employment. In 2015, allowed categories for savings were expanded by the Legislature, and in the coming year we are excited to be able to support the Initiative in piloting those new ways to support Oregonians’ goals.
A total of $10,028,250 in awards were made to the following organizations:
CASA of Oregon $3,800,000
College Dreams $800,000
Mercy Corps NW $645,000
NAYA Family Center $190,000
Neighbor Works Umpqua $2,275,000
Portland Housing Center $776,250
Warm Springs Community Action Team $317,000
Today we sent an email to our donor, CPA and financial advisor partners announcing the Oregon IDA Tax Credit contribution process for 2016. We have republished that email in its entirety.
As a friend of the Oregon IDA Initiative, we want to share some important updates.
There will be changes this year to how we sell the Oregon IDA Tax Credit. Those changes have been made to increase the impact on the lives of your fellow Oregonians.
Thanks to you and our many other loyal donors and partners, from January 2012 to May 2015 the number of IDA savers nearly doubled. About 5,000 Oregonians participated in the IDA Initiative during that time.
Participants worked hard to open IDA accounts and to make transformations to start small businesses, buy a first home, get a college education and more. They have also reported dramatic increases in use of household budgets, knowledge of their credit score, keeping an emergency fund and keeping an active savings account. These healthy habits and savings create choice and open doors to opportunity for individuals and families.
We think you’d agree that this is the kind of transformation which Oregon needs more of. Yet, for the last few years funding has been flat and we have been unable to keep growing the rate of new participants a year. If we kept on our previous trajectory we’d be able to add about 1,600 new participants per year. But that’s only a fraction of the people who want to participate.
2017 could be the year more Oregonians than ever are able to make dreams come true. But we need you.
How 2016 Tax Credits Will Be Sold
This past winter, Neighborhood Partnerships consulted with a focus group of Oregon donors and financial professionals to help gather feedback on changes to the Oregon IDA Tax Credit. One message that came through loud and clear is that they want the Initiative to be impactful for Oregonians. We’ve tried to balance making donations easy with the need to increase our impact in Oregon communities.
Thank you for your patience with these changes. We look forward to working with you to make these changes a success. We have outlined the new procedures below by contribution type. You can also find more information on our website OregonIDAInitiative.org/Donate
Contribute via check or wire transfer:
- You can contribute starting May 2 until we have reached our limit for 2016 tax credits
- You will receive an Oregon state tax credit equaling 70% of your contribution
Contribute via credit card:
- You can contribute starting May 2 until we have reached our limit for 2016 tax credits.
- Your tax credit rate will be 67% (a 3% reduction to account for credit card processing fees incurred by our nonprofit).
Contribute stock or mutual funds:
- You can submit a bid via auction during the following time period: May 9 – May 20
- The Oregon Dept. of Revenue now requires we collect donor Social Security Numbers or Employee Identification Numbers
- In 2016, we restored a maximum contribution amount, which is now $500,000 per tax payer
Please call us with any questions at 503.548.4475 or email me at mkinshella@NeighborhoodPartnerships.org.