Every day United Way for Southeastern Michigan makes dreams of home ownership, an education or purchasing a home come true, through Individual Development Accounts (IDAs).

IDAs make it possible for low-income individuals across Wayne, Oakland and Macomb counties to buy a first home, to start or expand a business, or to pay tuition for college or vocational school.

Statistics show an alarming number of families fare poorly when it comes to personal savings, asset management and educational attainment. With no tangible assets (home or business ownership), few money management skills and limited education, economic empowerment is virtually impossible for a large percentage of metro Detroit families.

However, with IDAs, United Way is opening doors to opportunity for many Wayne, Oakland and Macomb county residents who may have limited options otherwise.

How does an IDA work?
To participate in the program, individuals must meet income guidelines and agree to save at least $30 per month earned from employment in a designated savings account. Participants may save up to a maximum of $1,000. 

Each participant receives a copy of his or her credit report upon enrollment in the program. The report is evaluated, and credit counseling is offered.  However, no individual is denied enrollment because of an unfavorable credit report. 

By setting aside a small portion of their monthly income into a designated account, program participants become eligible to receive matching funds once their savings target is met. In the process, IDAs provide economic empowerment tools that make possible a more promising future for scores of metro Detroiters with few alternatives.  The program helps families take control of their money and eventually, regain their financial independence.

Program History
The IDA initiative was launched in 2001, with a $450,000 grant from the U.S. Department of Health and Human Services, through the Assets for Independence (AFI) program. United Way and the Detroit Youth Foundation matched the grant.

A $100,000 AFI grant awarded in 2003 is dedicated to the growing demand for homeownership accounts.  Matching funds for this second grant were provided by the state of Michigan Housing Development Authority and the Local Initiative Support Corporation. Through 2006, the IDA program received a total of three federal grants collectively worth over $1.5 million.

A number of partners play a key role in supporting IDA's foundation. For instance, a number of area banks agreed to establish savings accounts for program participants. Michigan State University's Outreach and Engagement Extension provides training for financial literacy instructors. Additionally, several area nonprofits offer ongoing counseling and case supervision, professional skills assessments, asset management training and a variety of follow up services.

Pathways to Financial Success
Since the program's inception, IDAs have served as the springboard to opportunity for hundreds of metro Detroiters. Based on current resources the program has the capacity to assist nearly 200 low-income clients secure a home, business or education. Consider the following:

• There are currently more than 221 active accounts, a number that grows quarterly   
• IDAs have made it possible for 102 participants to afford tuition at a college or vocational school
• At least 25 participants have started or expanded businesses
• Another 94 participants have either purchased a first home, or are in the process of completing a purchase.

* (Data as of July 2007)

IDA program graduates report better control over spending, credit and overall finances. And, most individuals continue to put away money on a regular basis. As a result, our graduates feel positive about their financial futures.