The Iowa Credit Union Foundation, in partnership with Coopera Consulting, has received more than $425,000 from an anonymous foundation to establish “The Credit Union Family Partnership.” This is the largest grant the ICUF has ever received, and it will also be used to hire its first executive director.

The new individual development account program, which will be tested over the next three years, is designed to encourage low-income families in Iowa to develop savings habits. Candidates who qualify for the program must commit to saving regularly for a set period of time, and if they achieve their goal, the program will match their savings to be used for buying a new home, paying for higher education or starting up or expanding a small business. In three years, the program expects to have seven participating credit unions enroll 186 low-income families, providing each with an average of $2,250.

“Individual development accounts have demonstrated to be groundbreaking tools in the fight against poverty,” said Mariann Peterson, president of the ICUF and CEO of United Services Credit Union. “IDAs do not provide low-income families with temporary aid to cover immediate needs, but the opportunity to acquire long-term financial sustainability.”

Coopera Consulting, a subsidiary of the Iowa Credit Union League focused on economic development in emerging markets, will spearhead the program with selected Iowa credit unions and work with human services agencies, local governments and community groups to help program participants achieve their savings goals. The only similar program in Iowa is through the Institute for Social and Economic Development, which works with banking institutions.