Interfaith Housing Services (IHS), a non-profit agency in Reno County for over eighteen years, recently expanded its IDA Program and tax credit opportunities. Our Individual Development Accounts (IDA) have been available in Reno, Kingman, Pratt and Harper Counties for over a year, creating life changing opportunities for low to moderate income households. Currently, 33 participants are saving to start a small business, buy their first home, make repairs to their existing home, or further their education and it is made possible through tax credit donations from local individuals and businesses.
Interfaith Housing Services (IHS), a non-profit agency in Reno County for over eighteen years, recently expanded its IDA Program and tax credit opportunities. Our Individual Development Accounts (IDA) have been available in Reno, Kingman, Pratt and Harper Counties for over a year, creating life changing opportunities for low to moderate income households. Currently, 33 participants are saving to start a small business, buy their first home, make repairs to their existing home, or further their education and it is made possible through tax credit donations from local individuals and businesses.
The Kansas Department of Commerce recognizes that IHS has the highest functioning, most effective IDA program in the state. The State of Kansas is aware that Individual Development Accounts makes a measurably significant difference in the lives of Kansans by creating stabilizing opportunities for individuals and families. The success of IHS in managing this program resulted in the Department of Commerce asking IHS to administer $450,000 in tax credits for the remainder of 2009 and an additional $450,000 for 2010. This creates an opportunity for IHS to generate $1,800,000 for this life changing program!
All IDA tax credit donors receive a 50% credit that is applied towards their Kansas tax obligation or added to their refund. In addition, donors can deduct the donation on their Federal income taxes if they itemize their charitable gifts. Donations for the program stay in the area, benefiting local households. “This is a great opportunity to put your money to work right where you live,” says Emily Hurst Director of Development for IHS. Just recently IHS received word that every dollar donated to this program is matched $1 for $1 by an Assets for Independence grant award through the Administration for Children and Families.
For example, if a business or individual donates $5,000 to this program IHS will put $10,000 into opening Individual Development Accounts right in their country. The donor subtracts $2,500 from their Kansas income tax obligation or gets $2,500 added to their refund. If the donor itemizes their federal income taxes they can then also deduct $2,500 as a regular charitable donation!
IDAs create financial security for program participants by assisting them with the acquisition of a high-return asset such as first home, repairs on an existing home, higher education, or by capitalizing a small business. Through the IDA program, clients receive financial education classes, build budget management and saving skills, and achieve a life-altering goal. Utilizing all available Kansas tax credits will allow IHS to provide Individual Development Accounts and change the lives of over 600 households in southwest Kansas.
For more information about Kansas Tax Credits and how they can benefit you and your community, please contact Emily Hurst at emilyh@ihs-housing.org, or 1-877-447-5927.
Individual Development Accounts become available in a county as tax credit contributions are received from businesses and individuals in that county.