Donors FAQ

Oregon IDA 75% Tax Credit
Frequently Asked Questions

About the Oregon IDA Initiative:

• What is an IDA? What is the Oregon IDA Initiative?
• What’s the impact of the Oregon IDA Initiative?
• Who is Neighborhood Partnerships?

About the Oregon IDA 75% Tax Credit:

• How does the tax credit work?
• How are contributions used?

I’m Ready to Contribute:

• Where do I find forms and instructions for making contributions which qualify for the Oregon IDA 75% Tax Credit?
• Who do I contact for more information?
• Is there a maximum amount that I can donate each year?
• Can I make a donation using my credit or debit card?
• Google only allows $25,000 per donation online. How can I make additional online donations?
• What are the instructions for donating stocks or mutual funds?
• Does my contribution qualify for a deduction on my federal tax return?
• If I don’t need all of my tax credits this year, can I use them next year?
• Is there a minimum amount I need to donate?
• Are there deadlines for donations?
• Is there a limit to the amount of contributions the Oregon IDA Initiative may receive each year?
• I’ve misplaced my acknowledgement letter for my donation. How can I get another copy?
• May I earmark my donation for a specific person, organization or community?
• Is there a sunset date for the tax credit?

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

Individual Development Accounts, or IDAs, are matched savings accounts that build the financial management skills 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 microenterprise, 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.

• Financial Information and Annual Reports
• Mission and Values
• Staff and Board

How does the tax credit work?

Individuals and businesses donate to the Oregon Individual Development Account (IDA) Initiative, managed by Neighborhood Partnerships, through the Oregon IDA 75% Tax Credit. For every dollar, 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.

How are contributions used?

Contributions are used to support the success of IDA participants.

1. 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.
2. 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 micro-enterprise business, 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.
3. 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.
4. Six and one half percent (6.5%) of your contribution goes 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.

Where do I find forms and instructions for making contributions which qualify for the Oregon IDA 75% Tax Credit?

Please see Forms & Instructions.

Who do I contact for more information?

Contact Kathy Turner by email or by phone at the Oregon IDA 75% Tax Credit direct line (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 that I can donate each year?

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

Can I make a donation using my credit or debit card?

Yes, and it is very convenient through Google Wallet, our online service. Download suggestions about using a credit or debit card for an online donation. Contact Kathy Turner by email or by phone at the Oregon IDA 75% Tax Credit direct line (503) 548-4475. If you are ready to donate now, please visit our donation page.

Google only allows $25,000 per donation online. Can I make additional online donations?

Yes. You can donate more by completing additional transactions, up to the maximum annual donation amount of $100,000. Download suggestions about using a credit or debit card for an online donation.

What are the instructions for donating stocks or mutual funds?

Please read our instructions on donating stocks or mutual funds. If you have further questions, please contact Kathy Turner by email or by phone at the Oregon IDA 75% Tax Credit direct line (503) 548-4475. Review our stock donation policy.

Does my contribution qualify for a deduction on my federal tax return?

We cannot offer you tax advice. Tax issues are very complicated and can vary on a case by case basis. To determine any additional tax benefits, please contact your tax and financial advisors. This information is not intended to offer nor held out as offering tax or investment advice to any individual or business. You should consult your tax and financial advisors before committing funds to the IDA Initiative or any other tax credit program.

If I don’t need all of my tax credits this year, can I use them next year?

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

Is there a minimum amount I need to donate?

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 you to receive a tax credit for the corresponding year.

• Please check the available balance 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 December 15th.
• Online donations must be received by December 31st, 11:59 pm Pacific Time. We encourage you to initiate your donation prior to December 31st.
• Checks sent by mail must be postmarked by December 31st.

You may also come to our office and make a donation in person with a check.

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.

I’ve misplaced my acknowledgement letter for my donation. How can I get another copy?

We’d be happy to help. Simply 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 you a copy of your acknowledgement. Please note that for your protection, we cannot send a copy of your acknowledgement letters to your financial or tax advisors without your written permission.

May I earmark my donation for a specific person, organization or community?

We are unable to allow you to specify a recipient for your donation. We are working in your community: we now have Initiative 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.