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Last Updated: May 26th, 2010 - 17:07:52 |
Seward County residence have the opportunity to bring the Individual Development Accounts Program to the area and help low income residence achieve financial independence. However, residents have until Dec. 31 to donate to the program and receive a special state income tax credit.
This fall, the Kansas Department of Commerce asked Interfaith Housing Services, which is in charge of the program, to expand into more Kansas counties. The Commerce Department created a unique incentive to gather funding. In exchange for donating to IHS, the non-profit will dole out up to $400,000 in special income tax credit. Donors will get back 45 percent of their contribution in the form of a Kansas tax credit.
“$400,000 of these tax credits expire by Dec. 31 of this year,” said Emily Hurst, director of development for IHS. “We have an additional $500,000 available next year, but we would hate to lose out on that opportunity for the community to get the program.”
The 45 percent return is either deducted from the amount of taxes owed to the state or it will be included in the refund check. A donor giving $1,000 to IDA will receive $450 back.
In addition, a donor could itemize the return as a charitable gift on their federal income tax, receiving even more of the original donation back. For example, a donation of $1,000 will lead to a donor receiving $450 back through the state but the donor could receive additional refunds from the federal government. The $1,000 donation could lead to a return of $600 back, Hurst said.
The donations IHS receives will double in size, said Hurst. Donations for IKS will also be matched through an assets for independence grant.
“Every dollar donated is matched dollar-for-dollar to help those clients in the community," said Hurst. "For every $1,000 donated, that's $2,000 we will have to make the program available to the community.”
Donations from Seward County residents will go only go towards potential programs in Seward County and will only benefit low-income Seward COunty residents.
As of Wednesday, IHS had not received a single donation from Seward County residences, said Hurst. IHS will need $50,000 for the program to begin in Seward County. If the money is donated the program will begin immediately after Jan. 1, 2010.
“Immediately after the first of the year, we would make an announcement to all the social services, churches and community groups that this program is coming available,” said Hurst. “We will make an announcement that the program is available and get people signed up."
Low-to-moderate income individuals and families are encouraged to apply. The first step of the program are a series of financial courses. The courses will compose of five to 10 individuals and will be taught over eight hours.
The courses will center on budget counseling, personal support, and the importance of financial independence. After the courses, the individual and the program open a joint savings account. The enrolled individual will place money earned into the savings account,and the program will match. For every dollar placed in the savings account, the program matches the amount by a ratio of 2-1.
"Every dollar that the client places in this program, we give them two dollars," said Hurst. "This helps them reach their goal and motivates them to better their financial situation."
Individuals must attend monthly life skills workshops where IHS staff check on the progress of the individual's savings account. Individuals enrolled in the program must remain in the program for six months and set a realistic savings goal to accomplish before leaving the program. Many work towards saving money to buy a home, start their own small business or enroll in a higher education program.
The goal of the program is to have a family or individual, who were once dependent on social services or only making it pay check to pay check, to become financially stable, said Hurst.
Future funding and support from the community will lead to IHS continuously beginning financial education classes and helping more county residence.
The program began in Reno County in 2007. The success and community support led IHS to expand into Harvey and Kingman counties in Central Kansas. IDA has opened 34 accounts since 2007.
Hurst said the benefits of IDA are endless. The program can help low income Seward County residents learn to save and can bring money into the local community.
For more information on donating to IDA, visit http://www.ihs-housing.com or call 1-877-477-5927.
For full story please see Sunday's Times'
© 2008 Southwest Times
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