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.
By Jessica Junke, Director of Economic Opportunity, Neighborhood Partnerships
Neighborhood Partnerships, under the leadership of Oregon Housing and Community Services (OHCS), is incredibly honored to partner with the dedicated organizations of the Oregon IDA Initiative. Their collective commitment to building lasting pathways to opportunity across the state is extraordinary.
Today, OHCS announced an award of $9.35 million to be distributed to our 10 partner organizations:
- College Dreams
- Community and Shelter Assistance Corporation of Oregon (CASA)
- Immigrant and Refugee Community Organization (IRCO)
- Mercy Corps Northwest (MCNW)
- Micro Enterprise Services of Oregon (MESO)
- The Native American Youth and Family Center (NAYA)
- Neighborhood Economic Development Corporation (NEDCO)
- NeighborWorks Umpqua (NWU)
- Portland Housing Center (PHC)
- Warm Springs Community Action Team (WSCAT)
In addition to maintaining our impactful statewide services in 2016, the Oregon IDA Initiative will include new savings categories because of our success during the 2015 Oregon Legislative session. These initial, focused pilots, led by CASA of Oregon and NEDCO, will give people access to savings for first and last month’s rent, building retirement readiness, and much more.
For instance, a pilot with Northeast Oregon Economic Development District (NEOEDD) will help community members purchase reliable vehicles to meet a significant unmet need in their region. Mercy Corps NW will expand support to young people currently incarcerated with the Oregon Youth Authority to save to support their success as they return to their home communities. NEDCO, in Springfield, OR will offer tenants at their Polk Street Apartments, an apartment complex for young adults aging out of foster care, a chance to save for more stable and lasting housing.
Please contact me with any questions about the 2016 Oregon IDA Initiative funding awards (jjunke@NeighborhoodPartnerships.org, 503-226-3001 x 109).
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.