Grant to Help IDA Business
Prosperity Works is proud to announce the receipt of an $8,000 Capacity Building Grant from the National Community Tax Coalition (NCTC). The grant is designed to reach underserved populations and provide excellent tax assistance. The award will allow Prosperity Works to increase the free tax preparation services provided to those it has helped develop or grow a small business.
“This is a fantastic opportunity for Prosperity Works to better serve our IDA participants,” said Sharon Henderson. “We see the need for these services in the state of New Mexico, and look forward to helping our IDA businesses move toward stability.”
Individual Development Accounts (IDAs) were created to encourage savings, investment and asset accumulation among low and moderate income families.
New Mexico is a state of high self-employment both formal and informal. Of the 1,156 IDAs managed by Prosperity Works, over half of them have been for business. The NCTC Capacity Building Grant Program will allow Prosperity Works to interweave education around Social Security benefits of full income reporting as well as the impacts of tax liabilities.
“We’re so pleased we can offer the financial and technical assistance to help Prosperity Works expand their services to IDA participants,” said Jackie Lynn Coleman, Senior Director of NCTC. “Given their previous successes, we’re really looking forward to seeing what they’re able to do with these additional resources.”
New Mexico is home to one of the largest low-income populations in the nation. “We continue to squander our potential, our economy and our future,” says Ona Porter, Prosperity Works President & CEO. Nearly one in 15 Americans—more than 20 million people—are now so poor they live at least 50 percent below the official poverty level. The figure is the highest ever recorded. Forty states and the District of Columbia have had increases in the poorest of the poor since 2007. The District of Columbia ranked highest, followed by Mississippi and New Mexico.
NCTC began its Capacity Building Grant program in 2008 through the support of the W.K. Kellogg Foundation. The program has expanded its support for community organizations each year to new communities, including the 2012 tax season, which will see five programs participating in three states: Michigan, Mississippi and New Mexico.
Programs will begin providing expanded services to low-income clients in January 2011. The grant also provides for an evaluation of each organization’s services for learning purposes in future years of the program.