That is so kind of you and your daughter to take the time to help. Your neighbor is fortunate you found their dog instead of animal control.
If my dog was lost, I would want him back home asap, so I agree with you 100% about having ID tags on pets.
For those who are interested in break-away collars or ID tags that are silent (the clinking sound drives me crazy), I love the ones I got from boomerrang tags.
I do alot of dog sitting in the summer but put these collars and tags on the dogs that list our contact info instead.
Boomerang Tags
I have two stainless steel mini tag with the open prong for my own dog- one for his step-in harness and one for his collar. Careful... they do not come off easily.