IDAs and CAAs: A Natural Partnership
A Technical Assistance Document for Community Action Agencies Operating Individual Development Account Programs
Introduction |
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| Methodology | |||
| Acknowledgements | |||
Individual Development Accounts (IDAs) are gaining popularity in the United States as a new anti-poverty strategy, a creative way to bring to America's lower-income families some of the economic benefits enjoyed by the country's more prosperous residents. Community Action, the movement founded in the mid-1960 under the nation's "War on Poverty," has consistently been in the vanguard of innovative new ways to help low-income families reach and maintain economic self-sufficiency. Community Action Agencies (CAAs), today close to 1,000 nationwide, are a nationwide network of grass roots organizations located in and responsive to the needs of low-income residents. Hence, a "perfect match"—IDAs and CAAs!
The purpose of this Technical Assistance Document is to provide information on CAAs that are currently operating IDA Programs with the hope that this information will be of benefit to CAAs and others in the IDA field. In this emerging field of IDAs, all of us can benefit from shared experiences. We hope that this Technical Assistance document will be a way to foster this sharing.
Methodology
Information for this document was gathered through an extensive online survey of the IDA field that was conducted in 2003. The survey was coordinated in collaboration with the Corporation for Enterprise Development (CFED) and 9 other national partners. The survey was publicized through various IDA, asset building and Community Action list serves; through e-mails to known IDA Program operators, state CAA associations and other CAAs; and through the extensive network of CFED and our national partners.
The survey gathered information on IDA Programs throughout the country—both those run by Community Action Agencies and those run by other agencies. In addition to the questions answered by all IDA operators, the survey contained additional questions that only CAAs were asked to answer. The data reported in this document are what were gathered from the Community Action Agencies that answered the survey.
397 agencies responded to the survey. Of these, 145 were CAAs, representing 37% of total respondents. CFED estimates that there are currently approximately 500 IDA Programs in the U.S. with more than 20,000 Account Holders. These figures would suggest that the number of CAAs operating IDA Programs represent a high percentage of the total number of IDA Programs. Also, a very sizeable percentage of CAAs operating IDA Programs responded to the survey.
The survey is a snapshot of the IDA field at a point in time. Most respondents answered all survey questions; some did not. A few of the programs that responded are no longer operating; some have moved from fledgling programs to fully operational ones; and some new programs have started. Despite this, we believe the information presented in this document is a valuable addition to the IDA knowledge base.
The survey resulted in several outputs: 1.) this technical assistance document, developed by CTE; 2) a study of linkages between IDA Programs, EITC outreach and tax preparation services, developed by the Central Vermont Community Action Council (CVCAC); and 3.) an online searchable database of all IDA Programs, produced by CFED. The database can be accessed at the IDA Network website.
We hope that this document will meet the following goals:
- To show how CAAS are operating IDA Programs
- To share lessons learned from the field
- To exchange best practices using examples from successful
programs
Throughout this technical assistance document you will see key survey findings as well as examples of effective, interesting and/or creative IDA Program practices. These examples are designated by a "blue ribbon."
If you would like a copy of this technical assistance document, please contact:
Marie Hawe
CTE, Inc.
34 Woodland Avenue
Stamford, CT 06902
Phone: 203-352-4851
E-mail: mhawe@ctecap.org
Acknowledgements
We wish to thank the U. S. Department of Health and Human Services, Office of Community Services for their funding of this project, and for the support provided by Jim Gatz, Anita Wright and Lillian Cash. For their assistance with the survey and data collection, we are grateful to The Corporation for Enterprise Development, in particular Carrie Johnson and Peter Genuardi. Thanks also to Karen Edwards, Center for Social Development at Washington University in St. Louis; Mary Neibling, Central Vermont Community Action Council; and Lisa Arends, Connecticut Department of Labor—IDA experts all—who, along with Carrie Johnson and Peter Genuardi, reviewed this document in draft form. A special thank you to Phil McKain, President and CEO of CTE, and to Betty Ann Mc Cree, CTE's IDA Program Manager.
The following national and local groups provided invaluable assistance by publicizing the survey and urging their constituent agencies to take part in it. Their help made it possible for the survey to reach such a broad range of IDA Program operators. Thank you to the Association for Enterprise Opportunity, Community Action Partnership, Corporation for Enterprise Development, Enterprise Foundation, First Nations Development Institute, Central Vermont Community Action Council, Office of Community Services, National Congress for Community Economic Development, National Credit Union Foundation and National Federation of Community Development Credit Unions.
Most importantly, thank you to the 145 Community Action Agencies
that took the time and effort to respond to the survey and to give
their thoughtful and insightful responses. This project would not
have been possible without them and their willingness to share their
experiences with the field.
