The Greenville News: Low-income residents to get savings incentive

By Angelia Davis
Originally published 12/03/2010 in The Greenville News (subscription required)

United Way of Greenville County is expanding its effort to improve financial stability among local low-income residents by providing a three-to-one match in a new savings account program.

The organization said Thursday it will use $600,000 in federal funds to expand its Individual Development Account (IDA), in part by helping low-income residents accumulate savings to use toward the purchase of a home, a college education or to start or expand a business.

The Greenville Housing Fund will administer the program in collaboration with the Greenville County Redevelopment Authority, Greenville Technical College, the Greenville County Human Relations Commission, and the YWCA of Greenville.

United Way and the Greenville Housing Fund officially launched the new Greenville IDA program Thursday.

Eligible residents must be at least 16 years old, have a gross annual income below 200 percent poverty line (about $21,600 for an individual and $44,100 for a family of four), have no more than $10,000 in assets, and be able to save a minimum of $25 a month.

Deborah McKetty, the housing fund's executive director, said the IDA already has six participants.

United Way's previous IDA program focused primarily on homeownership. The federal funds increase access to the program and add the education advancement and small business elements to it, according to Mike Posey, the organization's spokesman.

United Way leaders said the $600,000 Assets for Independence Grant came from the U.S. Department of Health and Human Services' Administration for Children and Families.

Margaret Clark, chairwoman of the United Way's board of trustees, said the Assets for Independence program allows agencies like United Way and the Greenville Housing Fund to “implement an asset-based approach for offering low-income families help out of poverty.”

The asset-building strategy, Clark said, is to help people move toward greater self-sufficiency by accumulating savings and purchasing long-term assets.

According to an American Community Survey by the U.S. Census, more than 12,000, or 11.2 percent, of the families in Greenville County were living below the poverty level in 2009.

“Because we strongly believe in the (IDA) program and its ability to have far-reaching impact in our community, United Way and the Greenville Housing Fund will contribute a total of $60,000 per year in matching funds to support the program over the next five years,” Clark said.

“By leveraging donor dollars into the grant program, United Way of Greenville County is doubling the impact of community resources and providing greater economic opportunities for our fellow citizens.”

J. Earle Furman Jr., chair of the housing fund's board, said the IDA program fits in with the agency's core mission of “assisting people and building assets through affordable home ownership and transitioning them from being in need right now to true financial stability.”

McKetty said because of United Way's efforts, there is more than $600,000 available to help more than 170 individuals and families over the next five years.

Through the IDA, participants will have their savings matched up to $1,000 at the three- to-one ratio to produce up to $4,000 toward the purchase of their asset.

They have from six to 24 months to save toward their goal. They must purchase their asset within six months of reaching their savings goal.

Participants also are required to complete financial literacy and asset training, McKetty said.

“We do not only want to make sure we're providing financial resources for individuals and families, but also that we're making sure that they have financial understanding of how to manage their finances to ensure their success going forward,” McKetty said.

Those interested in participating in the IDA program can dial 2-1-1 (United Way’s resource referral helpline), or call the Greenville Housing Fund directly at 864-235-6331. For more information on United Way’s other initiatives, visit www.unitedwaygc.org.