1. REAL Solutions
Volunteer Tax Assistance
Programs (VITA)
Nancy Pierce – Field Coach
So Your Credit Union Wants
to Participate in VITA
Outreach: What Does that
Mean?

2. 3 RS VITA Webinars
June 22 – How can state leagues
and foundations assist Cus with VITA
Outreach – Archived at:
http://www.realsolutions.coop/resources/webinars
Today – So your credit union wants
to participate in VITA outreach: What
does that mean?
August 17 – Complementary
products to a VITA operation

3. Today’s Participants:
Brian Zapf, Alternatives Federal Credit Union
Ellen Murtha, Santa Cruz Community Credit
Union
Jennifer Sierecki, North Side Community
Federal Credit Union

4. What is VITA?

5. Volunteer Income Tax Assistance
Is an IRS program that offers free tax help
to those who qualify – generally $49,000
and below
IRS certified volunteers help with tax
preparation
Help with special tax credits – Earned
Income Tax Credit, Child Tax Credit,
Credit for the Elderly or the Disabled

6. Linking VITA to
Asset Building
& Financial
Opportunity
Brian Zapf
Alternatives Federal
Credit Union
Ithaca, NY
www.alternatives.org

7. Community Tax
Program

8. Profile of Unbanked
Low Household income
Rent
Younger age
Immigrant
Minority
Low Income neighborhood
Less educated
Unemployed
Larger family
Higher cost services (lower
savings)

9. What’s the Earned Income Tax Credit?
Intended to support working families, rewarding
work especially for people
with limited incomes
and children
It first started in 1975,
expanded since then
It’s now the federal benefit that brings the most
US families out of poverty!

10. More about the EITC:
EARNED INCOME TAX CREDIT = MONEY in
the pockets of working people, but ONLY if
they file a tax return!
The EITC lifts more people out of poverty than
any other government program.
Single parent of two children earning $12,500 –
$16,500 is eligible for the maximum refund of
$5,657 a 34-45% increase in the family’s
income!!!

11. Get extra credits: Federal & Empire
State Child Tax Credit
For parents raising children under age 17
Federal credit worth up to $1,000 per
qualifying child
State credit is also
available for qualifying
children
(different criteria apply)

12. Get extra credits: Child &
Dependent Care Tax Credit
For parents who use child care for children
under age 13 while they work, look for
work, or go to school
Federal credit worth
up to 35% of child care
expenses
NY State credit worth up to
100% of the federal amount is a
Refundable Credit

13. The Problem- You can only
get these credits if you file. And chain
preparers target these returns for:
RALs - Refund Anticipation Loans
$1.75 Billion Diverted Annually
What a scam!
Charged at Interest Rates
of 64% - 1000%

14. Our Solution
$ 0 = The cost of preparation with us
$ 0 = The cost for e-filing
$20 = Refund Express Fee
$10 = The average interest paid
70+ = The number of volunteers
And a Growing Coalition:
United Way, Day Care Council, Lifelong RSVP, Cooperative
Extension, Tompkins Cortland Community College,
Department of Social Services, Ithaca College, Red Cross,
United Auto Workers, Towns of Dryden and Caroline

15. Thanks to our community partners
Human Services Coalition Ithaca College School of
The Women’s Business
Opportunity Center Cornell Public Service
TCAT Center
Evenstart Tompkins Learning Partners
BOCES The New York Makes Work
Pay Coalition
Cornell Translator Lifelong RSVP
Interpreter Program
United Autoworkers OAR Ithaca
The Corporation for Latin American Civic
National and Community Association
Service Town of Dryden
Tompkins 211 Brooktondale Community
IRS (SPEC) Center
Catholic Charities Iraqi Refugee Assistance
Connection of Ithaca

16. Thank You to Our Sponsors
United Way of Tompkins County
Tompkins Trust Company
HSBC
United Autoworkers
Cornell Sunshine Lady Foundation
The Corporation for National and
Community Service

17. Benefits All Around
8600+ = Returns completed in 8 years
519 = New credit union members in 8 years
$150 = Average fee savings for filers
$150 = Average additional savings for filers with
Refund Express
$1.2 million+ = Preparation and loan fees avoided
$14.7 million+ = Refunds claimed in 8
years

18. Our Clients TY 2009
1,547 Number of clients served
$2,815,130 Amount of federal refunds
$3,533,179 Dollar amount of all refunds
$255,255 Total cost to clients if they
had each paid $165 to have their
taxes prepared.

19. Not Just Free Tax Prep:
Opening That Account
Free Direct Deposit into any account
CU Membership – $10 One Time Fee
$5 Initial Deposit ( all Fees are waived until the
refund arrives)
Fresh Start Checking Accounts
Low-Cost Refund Express Loan
31% of our new VITA members had been unbanked,
3 times as many as our general membership

20. Refund Express Loan
Draws taxpayers to the program and away
from predatory lenders; saves them
hundreds in fees.
Uses our Line of Credit (L.O.C.), an existing
service: no new forms, paperwork, or policies
needed.
Extremely safe loan if simple procedures are
followed.
An open door to the world of productive
credit
A great opportunity to repair or build a credit
history.

22. Refund Express Loan
Draws taxpayers to the program and away
from predatory lenders; saves them hundreds
in fees.
Uses our Line of Credit (L.O.C.), an
existing service: no new forms,
paperwork, or policies needed.
Extremely safe loan if simple procedures are
followed.
An open door to the world of productive
credit
A great opportunity to repair or build a credit
history.

23. Refund Express Loan
Draws taxpayers to the program and away
from predatory lenders; saves them hundreds
in fees.
Uses our Line of Credit (L.O.C.), an existing
service: no new forms, paperwork, or policies
needed.
Extremely safe loan if simple procedures
are followed.
An open door to the world of productive
credit
A great opportunity to repair or build a credit
history.

24. Loan Losses
Program Inception to date: $0
Administrative Expenses
Covered by $20 fee paid by borrowers

25. Refund Express Loan
Draws taxpayers to the program and away
from predatory lenders; saves them hundreds
in fees.
Uses our Line of Credit (L.O.C.), an existing
service: no new forms, paperwork, or policies
needed.
Extremely safe loan if simple procedures are
followed.
An open door to the world of productive
credit
A great opportunity to repair or build a
credit history.

26. Taxes are nice…
…but asset building is the key

27. Refunds to Assets
Like Getting Your Taxes Done for Free?
You’ll LOVE What Else We Can Do for You!

28. Additional Resources and
Contact Information
Public information on our website,
www.alternatives.org/refundexpress.html
Brian Zapf, Community Tax Program
Director, bzapf@alternatives.org
607-216-3459

29. Santa Cruz Community CU
Free Tax Return Preparation
(Earned Income Tax Credit)
Program
Tax refunds and credits that benefit
your members, your potential
members, and your credit union

30. Mission and Structure
Mission: Santa Cruz Community
Credit Union is a nonprofit financial
cooperative that promotes economic
justice.
Santa Cruz Community Ventures: a
501(c)3 public benefit corporation,
an affiliate of the Credit Union

31. Who We Are
Founded in 1977
Community Development Credit
Union; CDFI with NCUA low income
designation. Serve low- and
moderate-income communities in
Santa Cruz and north Monterey
Counties in CA
$82MM in assets, 10,000 members

32. Why SCCCU Offers Free Tax
Assistance
EITC brings federal and state funds
into the community
Significantly increases income for
low-income working families
Residents spend many of these
refund dollars at local businesses,
which create more jobs

33. The Credit Union Connection
Provides an incentive to “unbanked”
and a link to financial products,
services, and asset building
knowledge
Educates low-to-moderate members
of ‘work supports’ like EITC, that
can benefit them
Promotes and establishes long-term
relationships with the credit union

34. Earn it, Keep it, $ave it!
SCCCU began offering financial education
at Volunteer Income Tax Assistance sites
in 2004
With partners, we had 19 sites this last
tax season. We operate 3 bilingual tax
sites ourselves – one at CU branch, in
addition to other ad-hoc sites
Private and government grant funds
support a PT program coordinator; who is
certified to do taxes (certification is easy)

35. Outreach Message that All Appreciate
VITA and EITC are our government
at its best. Elected representatives
are pleased to promote this
Even the “compassion-fatigued” can
appreciate that this service is for
people who earned income
The cost effectiveness of volunteers
is something the whole community
can cheer on

36. Outreach Materials and Concepts are
Already Available
Free ideas and reproducible P.R:
The National Community Tax Coalition
The IRS/SPEC
The Center on Budget and Policy
Priorities
The airwaves are public and
assessable
Get listed on 2-1-1 and 800 phone
lines as well as service databases

37. Outreach continued
Only limit to outreach is your time
and resources (and your partners!)
The challenge of outreach is people
have be bombarded by messages
and advertising
Reaching the low-to-moderate
income, other language, or
immigrant populations requires skill

38. Outreach – a final word
Word-of-mouth is what people say
about how they heard of us
Must have multiple methods for
generating word-of-mouth
(community agencies, radio,
banners, newspapers, handouts…)
When we serve people well, they
tell their family, friends, co-workers

39. VITA Sites reach people who can
benefit from assistance
Partner agencies offer other ‘work
supports’ such as Food Stamp
applications and children’s health
insurance
We partner with family resource centers,
the county public assistance, early
childhood education organizations, the
United Way and other service providers
Utilize university student interns +
community for trained volunteers

40. Earn it, Keep it, $ave it, continued
Offer bilingual/bicultural onsite
financial education, account
opening, tax refund splitting, and
direct deposit
Link with asset building
opportunities (savings, IDAs)
Partners leverage county-wide
impact of program, allow expansion
of service

41. How to get involved
Develop free tax preparation
program, or,
Partner with local organizations
offering free tax assistance by:
Volunteering
Opening accounts, financial education
Promote EITC info and local tax site
information to your members
Either way, find partners first

42. Why Credit Unions?
People helping people philosophy
Benefits members financially
Credit unions offer a critical link to
financial products and services
Effective public relations and
marketing opportunity

43. Need More Reasons?
Builds trust and positions the CU as
a place to go for information,
education and financial services
SCCCU has received local
recognition from the elected
representatives, the Volunteer
Center and the United Way.
SCCCU has received funding that
recognizes we our asset building

44. The Numbers
SCCCU filed 509 returns, with
partners 1,765
Refunds of $730,634 for 2009 tax
year, with partners $1,844,655
Average EITC return = $1,839
Estimate program saved over
$101,800 in tax return preparation
fees, with partners $321,600

45. The Numbers, continued
Refunds = 13% annual income increase
11% ‘unbanked’ opened accounts
56% used direct deposit – which is a tool
to defeat Refund Anticipation Loans
Financial education offered in concurrent
classes, handouts and referrals
Between 1/3 – ½ intended to save some
of the refund (depending on site)

46. Resources
REAL Solutions (www.realsolutions.coop)
National Community Tax Coalition
(www.tax-coalition.org)
IRS SPEC
(http://www.irs.gov/individuals/article/0,,
id=119374,00.html) or (www.irs.gov)
The Aspen Institute – Economic
Opportunity Program
(www.aspeninstitute.org)

47. QUESTIONS?
Contact Information:
Ellen F. Murtha
Community Development and
Outreach Program Manager
Santa Cruz Community Credit Union
(831) 460-2345
ellen.murtha@scruzccu.org

48. NORTH SIDE COMMUNITY
FEDERAL CREDIT UNION
So Your Credit Union Wants to Participate in
VITA Outreach: What Does that Mean?
July 27, 2010
Jennifer Sierecki
Manager
773-769-5800 x.227
j.sierecki@northsidecommunityfcu.org

49. North Side Serves Chicago
Communities
• 36 year-old community development credit union
• Low-income designated by NCUA
• Certified as a Community Development Financial Institution (CDFI) by the
U.S. Treasury
– $9 million in total assets and over 3,000 members
– Partners with 42 employers with over 7,000 employees
• History of serving people who are not using mainstream financial institutions
• History of innovative products – Payday Alternative Loan, VITA, New
Americans Loan Program, Housing Counseling

50. History of VITA Services
• Partnership with Center for Economic Progress (CEP)
– In 2004, North Side began its partnership with CEP, one of
the largest VITA organizations in the country.
– CEP provides marketing materials, equipment, supplies, a
small food budget, volunteers, and site managers. North
Side rents additional space in the building for intake,
provides additional food for the volunteers, and has staff
oversee the site.
– For year one, North Side hosted a site for one evening a
week, scheduling appointments for members and SEG
employees.
– Year three of the VITA site, North Side opened the site for
two evenings, one evening still reserved for members and
SEG employees, the other evening open to the community.
– In 2009, North Side’s VITA site expanded to three evenings.

51. History of VITA Services (continued)
• North Side Staff and Marketing Responsibilities
– Initially, one North Side VISTA intern and one staff member
were certified by CEP to prepare taxes and in site
management procedures.
– Currently, one North Side staff person is certified each
season, schedules appointments, and oversees the site.
– North Side harnesses its relationships with SEGs and other
partners to promote VITA services via payroll stuffers,
newsletter blasts, event postings.

52. VITA Site Returns
4000
3369
3500
N u m b er o f R etu rn s
3000
2500
2000
1500
813 660
1000 572 573
500 196 269 286
0
03 Tax 04 Tax 05 Tax 06 Tax 07 Tax 08 Tax 09 Tax Grand
Year Year Year Year Year Year Year Total

53. VITA Site Refunds
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
03 Tax 04 Tax 05 Tax 06 Tax 07 Tax 08 Tax 09 Tax Grand
Year Year Year Year Year Year Year Total
Total $179,205 $317,813 $408,365 $729,978 $791,658 $1,182,486 $1,093,915 $4,703,420

54. Helping the Community Save
• During its VITA history, North Side has been able to return over $4 million
dollars to the community and save over 3,000 individuals and families a
minimum of $387,435 in tax preparation fees.
• This savings does not include what clients would have paid for a RAL or
refund check cashing fees. In 2002, over one-third of residents receiving
EITC funds in three of North Side community areas (Rogers Park, Uptown,
and Edgewater) used RALs, and paid a total of $1,108,808 in fees.

55. Why VITA?
Up to 5% of the wages employers paid to some workers was spent at Currency
Exchanges, Payday Loan stores, and other fringe financial service providers*
• Low income individuals and families save with free tax
preparation
– Paid preparers charge $110+ for a service that a trained volunteer
can provide in one hour
– Refund Anticipation Loans (RALs) cost $150+ to advance a refund
that could be directly deposited to a credit union account in two
weeks through the VITA site.
– Many working families might not file otherwise – forfeiting money
they have earned.
• Members, SEGs, and partners value the service
– Members return year after year and continue to save their refunds
with the credit union.
• Excellent Outreach to Potential New Members
– Come in for the free service and take advantage of other products
and services.
•$660 annually ($110 for tax preparation, $150 RAL, $400 for Currency Exchanges, Payday Loans
and other financial service providers) for an individual earning $7.50 per hour

56. Lessons Learned
• A VITA site is no small undertaking
– Keep in mind that staff time dedicated to the VITA site takes away
from other credit union objectives, but is a great way to serve your
membership and recruit new members.
– You will have individuals come into the credit union throughout the
day and sometimes throughout the year with tax questions, even if
your site is not open.
– Our site operates during the evening hours, so staff at the time
work unconventional hours and may not be able to assist
members during credit union hours.
• Determine if a VITA site is right for your credit union
– Does a percentage of your membership fall within the VITA
income guidelines?
– Do your current SEGs and partners have employees or clients that
fall within the VITA income guidelines?
– While clients that open account during VITA services will have
their refunds direct deposited into the credit union, there is a high
probability that many will end up as low balance accounts.

57. Lessons Learned (continued)
• Start outreach early
– Coordinate payroll stuffers and poster displays at SEGs and other
partners in December to get people before they get their W-2s.
– If you decide to make appointments, start making scheduling
appointment in early January for services in late January.
• You are only as good as your partner(s)
– Be aware that there are only some things out of your control, such
as volunteers, still represent the credit union.
– Make sure to keep open lines of communication.
• Foster an environment to retain good volunteers
– Keep the volunteers happy, so they come back every week and
hopefully next year!
• Keep the VITA clients happy
– So they come back next year and not to a paid preparer.
• Develop complementary products
– To keep members active with the credit union, we created two
products to help them grow their savings at tax time, a refund
reward CD and a match refund account.

58. Timeline for Implementation
• If you are interested hosting a site for a partner, contact your local VITA
organization early to begin conversations and to determine their process for
adding on new sites and partners. After April 15th is ideal.
• If you want to start a site on your own, get to know your local IRS SPEC
representative ASAP.
• Explore grant support available through the IRS and other channels, this will
help to determine when to start your plans.

59. Summary Themes
Importance of Partnerships
Helping the Community
Outreach to Lower Income Families
Keeping More Money in Consumers’
Pockets

60. Ways to Participate
Provide information about EITC and local
VITA site
Volunteer at a site
Host a site
Become a certified tax volunteer
Open accounts, offer financial education
Offer Refund Express Loan

61. Save the Date
August 17, 3 pm EDT – Complelmentary
Products to a VITA Operation
Nancy Pierce, REAL Solutions Field
Coach: piercen@kcnet.com
Questions?