Oregon IDA Tax Credit FAQs

Frequently Asked Questions for Financial Advisors and CPAs

About the Oregon IDA Initiative

About the Oregon IDA 75% Tax Credit

When My Client is Ready to Contribute

What is an IDA? What is the Oregon IDA Initiative?

Individual Development Accounts, or IDAs, are matched savings accounts that build the financial capability of qualifying Oregonians with low incomes while they save towards a defined goal. IDAs open up pathways of opportunity and create models of economic success in Oregon communities.

The Oregon IDA Initiative is a proven approach which provides access to financial education and matching funds to help Oregonians achieve their dream of owning a home, starting a small business, or continuing their education. This successful collaborative effort provides the skills and funds to help rebuild Oregon’s middle class, and, in the process, rebuild Oregon. Building financial stability and resilience is a first step.

What’s the impact of the Oregon IDA Initiative?

The goals of the Oregon IDA Initiative are to create financial health and resilience to rebuild Oregon’s middle class. Evaluation findings illustrate the effectiveness of the Initiative and demonstrate positive outcomes for individuals who have participated. The Initiative has allowed many participants to achieve results for themselves and their families that many could not have envisioned on their own.

Who is Neighborhood Partnerships?

Neighborhood Partnerships is a statewide non-profit 501(c)(3) organization dedicated to creating opportunity for Oregonians. We build and manage strong partnerships that fuel change and progress in our community. Each year, we have impact on the lives of thousands of Oregonians through high profile collaborations and initiatives and through nurturing leaders.

Neighborhood Partnerships has over twenty years of experience in management and fiscal oversight. We have been a partner in the Oregon IDA Initiative since 2003, and have acted as manager of the program since 2007, under the leadership and oversight of the State of Oregon’s Housing and Community Services Department and the Oregon Department of Revenue.

To learn more about Neighborhood Partnerships, please click on a topic below.

How does the tax credit work?

Individuals and businesses donate to the Oregon Individual Development Account (IDA) Initiative, managed by Neighborhood Partnerships, and qualify for the Oregon IDA 75% Tax Credit. For every dollar donated, the contributor receives a seventy-five percent (75%) Oregon IDA tax credit which can be used to directly lower their Oregon tax liability, up to the maximum contribution of $100,000 per return each tax year. For example, if an individual or business donates $10,000 to the Oregon IDA Initiative, they receive a $7,500 Oregon IDA 75% tax credit.

All donations are dedicated entirely to reaching the goals of the Oregon IDA Initiative. This provides significant leverage for the state’s commitment of the 75% tax credit for donations. Initiative resources support modest administration and marketing expenses, and are competitively allocated to Initiative Partners (termed “Fiduciary Organizations” in statute) to support their program delivery and administration (typically 20% and 5% respectively of allocations) and matching payments for participants (75% of allocations).

How are contributions used?

Contributions are used to support the success of IDA participants.

Seventy percent (70%) of donations go to match the savings of participants who have reached their savings goal and who are ready to make an investment in their future. Participants save monthly toward their goal and earn Oregon IDA Initiative matching funds. In most cases, they earn $3 for every $1 saved.
About nineteen percent (19%) is used to provide financial education, participant support, and training to prepare IDA participants for their goal of running a successful microenterprise, becoming a first time homeowner, or continuing their education or training for a career path. Funds raised through the Oregon IDA Initiative are distributed each year to a network of qualified non-profits across Oregon that support and train participants as they work towards their goal.
About four and one half percent (4.5%) of contributions goes to the network of IDA providers to help cover the costs of data collection, financial accounting, and operational expenses.
Six and one half percent (6.5%) of contributions go to manage the overall Initiative, including an independent evaluation, financial and program oversight of the Oregon IDA Initiative and the network of IDA providers and to market the Oregon IDA 75% Tax Credit.

Do you have a fact sheet or brochure about the Oregon IDA 75% Tax Credit I can share with clients?

Yes. You can download a fact sheet about the Initiative, learn more about the independent evaluation, or read success stories.

How can my clients donate? Where can I find forms and instructions?

Clients can contribute online, by check, or by donating stocks or mutual funds. You can find Forms and Instructions for your clients here.

Who do I contact for more information?

Contact Kathy Turner by email or on the direct Oregon IDA 75% Tax Credit phone line at (503) 548-4475.

From mid-November through December, we will be responding to calls in the evenings and on the weekends.

Is there a maximum amount my clients can donate each year?

Yes. $100,000 is the annual limit per return filed.

Do you accept donations using a credit or debit card?

Yes, we accept donations through Google Wallet. For more information, contact Kathy Turner by email or by phone at (503) 548-4475. If your clients are ready to donate now, visit our donation page.

Google only allows $25,000 per donation online. Are my clients able to make additional online donations?

Yes. Your clients are able to donate more by completing additional transactions, up to the maximum annual donation amount of $100,000. Read more about using a credit or debit card for an online donation.

How do I donate stocks or mutual funds?

Review or download instructions on donating stocks or mutual funds shares. We also have a stock donation form. If you have further questions, please contact Kathy Turner by email or by phone at (503) 548-4475. You can also review our stock donation policy. If you have questions about the transfer process, please contact our stock fund manager, Dane Bradford at JP Morgan Chase. He can be reached at (503) 238-3413.

If your clients are ready to donate now, they can visit our donation page.

What is your stock donation policy?

You can find our stock donation policy here.

How will my client’s contribution of stock or mutual funds be valued?

You can find our stock donation policy here.

Do you accept wire transfers into your bank account?

Yes, please read our instructions for wiring contributions. Please also complete a stock donor form or have your client complete a stock donor form and contact Kathy Turner by email or by phone at (503) 548-4475 to ensure that we can properly credit the donation to your client.

Does my clients’ contribution also qualify for a deduction on their federal tax return?

We are unable to offer tax advice. As you know, tax issues are very complicated and can vary on a case by case basis. Your clients should consult their tax and/or financial advisor before committing funds to the IDA Initiative or any other tax credit program. This information is not intended to offer nor held out as offering tax or investment advice to any individual or business.

If a client doesn’t need to apply all of their tax credits this year, can they be used next year?

Yes. Excess tax credits can be carried over for up to three years.

Is there a minimum contribution amount?

No.

Are there deadlines for donations?

Yes, donations must be received or postmarked by 11:59 pm Pacific Standard Time on December 31st in order for your client to receive a tax credit for the corresponding year.

Please check availability before donating, or contact Kathy Turner at (503) 548-4475.
Stocks and/or Mutual Funds must be received into our account by December 31st. They generally take from a few days to a few weeks to arrive in our account, so we advise you to initiate the transfer by or before December 15th.
Online donations must be processed by Google by December 31st, 11:59 pm Pacific Standard Time.
Checks sent by mail must be postmarked by December 31st.

Your clients may also come to our office and make a donation with a check in person. In addition to the regular work week, we will be open for extended hours during the holiday season. Please call the IDA direct line at (503) 548-4475 or the main office number at (503) 226-3001 extension 102 to check our hours before coming in.

We will have extended hours in the evenings and on weekends to respond to questions on the direct Oregon IDA 75% Tax Credit phone line at (503) 548-4475, starting in mid-November through the end of the year.

Is there a limit to the amount of contributions the Oregon IDA Initiative may receive each year?

Yes, there is a limit of $10 million dollars annually; any contributions received in excess of $10 million dollars will be returned to the contributor or carried over to the next year.

What should I do if a client has misplaced their acknowledgement letter for a previous donation? Are copies available?

We’d be happy to help. Simply have your client contact Kathy Turner by email or by phone at (503) 548-4475 or Mercy Rossi by email with the Oregon IDA Initiative and we can mail and/or email your client a copy of their acknowledgement(s).

Please Note: We are not able to send a copy of your client’s acknowledgement letter to you without their written permission. This is to protect their privacy.

Can donations be earmarked for a specific person, organization or community?

We are unable to allow your client to specify a recipient for their donation. We are in your community: we now have partners offering IDAs in thirty-three of Oregon’s thirty-six counties, and are still expanding to reach harder to serve communities and more rural areas.

Is there a sunset date for the tax credit?

All tax credits are being reviewed by the State Legislature and have been scheduled to sunset. The Oregon IDA 75% Tax Credit is currently scheduled for review in 2015 and to sunset on January 1, 2016. Tax credits must all be used within three years, and before December 31, 2018.

Oregon IDA Initiative