Assessment of a State TANF Funded IDA Initiative: A Case Study

Individual development accounts (IDAs), wealth-building programs for the working poor, have existed since the late 1980s. Current research suggests that IDA programs benefit families while contributing to local and state economies. This program evaluation assessed the impact of one state Temporary Assistance for Needy Families (TANF)-funded IDA initiative. Quantitative and qualitative data were collected from four agencies chosen using cluster sampling across the state. Agency programmatic and participant data from the last year of operation (N?=?160) were examined. Agencies also provided contact information for three participants who had graduated and three who exited the program prematurely in the past year of operation. In person, interviews were held with agency directors (n?=?6) and IDA participants (n?=?11) were interviewed by telephone. Results indicate that 69% (n?=?111) of IDA enrollees successfully completed the program. IDA participants who exited the program prior to completion also expressed benefits associated with the time in which they were involved. Programmatic and individual benefits and challenges reported guide recommendations for improving IDA marketability, participant outcomes, and organizational performance rates. A critical implication of the findings is the need to expand the use and design of IDA programs legislatively to better serve historically oppressed and working poor families more effectively.