West Virginia EITC Outreach Campaign

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West Virginia EITC Outreach Campaign
Calah Young Executive Director West Virginia
Alliance for Sustainable Families
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Overview

• Campaign Background
• Organizational Structure
• Partnerships
• Outreach Methods
• Results

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Earned Income Tax Credit

• Created by Congress in 1975 to offset the burden
  of social security taxes and to provide an
  incentive to work.
• Refundable federal income tax credit available to
  low-income families.
• Credited with lifting more children out of
  poverty than any other single program.

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Need for EITC Outreach

• It is estimated that between 15 and 25 of
  eligible tax payers fail to claim the credit.
• In tax year 2004, EITC eligible tax payers left
  an estimated 4.9 billion in EITC on the table.
• Of those who claim EITC, over 70 file their tax
  returns through a paid tax preparer and pay fees
  adding up to more than 2 billion annually.

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Need for Outreach in WV
Source 2006 American Community Survey, US Census
Bureau
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Campaign History

• 2005
• Began formulating statewide approach to outreach
• Developed partnerships (WVDHHR, IRS, Claude
  Worthington Benedum Foundation, Annie E Casey)
• 2006 - Current
• WVASF established as Statewide Leader
• Created 7 EITC Regional Coalitions (statewide
  coverage)
• Established funding support through Benedum,
  WVDHHR, WV State Tax Department

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Role of WVASF

• As lead agency for statewide campaign
• Develop strategic partnerships
• Support Regional Coalitions (materials,
  strategies, technical assistance)
• Develop and manage statewide workplan (strategic
  goals asset development, employer outreach,
  volunteer training)

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Key Partners

• WV DHHR
• Claude Worthington Benedum Foundation
• IRS
• WV Department of Revenue
• WV State Tax Department
• WV First Lady Gayle Manchin
• WVU Extension Service
• Regional Coordinators and Coalitions

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Regional Coordinators

• Serve as leader/point of contact for the region
• Coordinate activities with WVASF statewide effort
• Organize and facilitate coalition meetings
• Recruit volunteer tax preparers
• Encourage establishment of VITA sites
• Coordinate EITC outreach efforts/media relations

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WV EITC Outreach Methods

• Focus Areas
• Media (PSAs, press releases)
• Asset Development (client intake survey, asset
  rack card, financial literacy handouts/
  workshops)
• Employers (toolkit, VITA sites, survey)
• Volunteers (training, recruitment, recognition)
• Free Tax Preparation (brochure, website, events)

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EITC Results 2004-2007
Preliminary results
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EITC Opportunities WVU Extensions Role

• Elaine Bowen, Ed.D., Extension Specialist/
  Associate Professor
• Allison Nichols, Ed.D., Extension Specialist/
  Associate Professor
• Richard Fleisher, M.A., Extension
  Specialist/Associate Professor
• Alison Hanham, M.A. Community Development
  Specialist

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• EITC Research Participant Survey

• Purpose to identify barriers, behaviors, and
  practices among EITC filers
• Participants 248 EITC filers in 9 North Central
  West Virginia counties. 60 of respondents
  applied for EITC last year 20 did not.
• Process participants who filed for EITC
  February-April 2006 completed a survey at free
  tax assistance sites in their communities

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• Survey Questions

• How they learned about EITC and free tax
  preparation services
• Why they did or did not apply for EITC
• How they plan to use their EITC refund
• If they did or did not pay for help in preparing
  last years return

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• Survey Results Information Sources Media

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• Survey ResultsInformation Sources - Media

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• Survey Results Information Sources - Personal

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• Survey Results Information Sources Personal
• Respondents with lower education levels were more
  likely to learn about services from family,
  friends, and agencies.
• Respondents with higher education levels were
  more likely to learn about free services from
  employers and other sources.

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• Survey ResultsReasons For Not Filing Last Year

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• Conclusions from the Participant Survey

• Persons with children are more likely to apply
  for EITC, therefore Childcare centers, Head
  Start, and schools may be important EITC
  information sources.
• Those without children were more likely to come
  to the tax service site with no intent to file
  for EITC they may not know that they may meet
  other EITC eligibility rules
• Better educated people often find out about EITC
  from their employer, therefore employers should
  be engaged in dissemination of information.
• Working families who qualify for EITC need more
  information and encouragement to secure their
  refund.

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• Recommendations from the Participant Survey

• The survey instrument should be provided to
  other West Virginia coalitions so they may
  collect data in their regions.
• An employer e-survey should be conducted via the
  Morgantown Chamber of Commerce to identify
  attitudes, interests, barriers, and opportunities
  for EITC promotion.

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• Employer Survey

• The EITC Employer Survey examines the following
  issues
• How employers are currently helping their
  employees maximize their income tax return
• Employer knowledge of EITC
• Employer impressions of the value of EITC
• Concerns or issues about promoting the EITC
  program
• Benefits to companies who promote the EITC
  program
• Resources employers would like to receive from
  the EITC program
• Rating of employer interest in promoting EITC

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• Distribution of the Employer Survey

• An employer e-survey was conducted via the
  Morgantown Chamber of Commerce
• Surrounding county Chamber of Commerce
  organizations also distributed the survey to
  their constituents
• Twenty-two businesses responded (108 people
  opened the survey)

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• Respondents of the Employer Survey

• Number of employees ranged from less than 10 to
  500 or more. Almost half had less than 10
  employees in their company.
• 45 percent had less than 10
• 32 percent had 11 50
• 18 percent had 51-100
• 9 percent had 101 or more

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• Ways Employers are Helping Employees Maximize
  their Income Tax Return

• Invited volunteers to come and help employees
  complete tax returns (73)
• Employed a person to give tax advice to
  employees (68)
• Promoted EITC to eligible employees (45)
• Not doing anything (27)
• Doing something else (41)
• Serving as a VITA site during the tax season (1
  response)

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• Knowledge of Earned Income Tax Credit

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• Impression of the Value of EITC

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• Concerns about Promoting EITC

• Making sure that employees do not feel
  undervalued because they qualify for EITC (43)
• Protecting the confidentiality of employees
  (33)
• Covering time away from work (33)
• The proximity of EITC or VITA sites to the
  company (29)
• Finding space to hold professional meetings
  (19)
• The financial literacy capabilities of employees
  (14)

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• Desired Benefits for Companies

• Commitment to corporate/business social
  responsibility (74)
• Being associated with a program that has an
  extremely positive impact (68)
• Additional volunteer opportunities for
  employees, retires, and/or appropriate family
  members (56)
• Opportunity to reach new communities (39)
• Opportunity to tap into and demonstrate core
  skill competencies unique to the business and
  employees (37)
• Community Reinvestment Act requirement met (33)
• New customers and clients (32)
• Promotion to potential customers and enhanced
  branding visibility
• (32)

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• Desired Benefits for Employees

• Increased income (79)
• Increased financial security (79)
• Increased respect for the company (78)
• Access to asset development services (61)
• Additional services (56)

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• Resources Employers Would Like to Receive from
  the EITC Coalition

• Clear, easy to read materials or toolkit (95)
• Web connections (75)
• Tax preparers (44)
• Speakers (33)

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• Interest in Beginning or Increasing Efforts to
  Promote EITC Benefits

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• Lessons Learned from the Employer Survey

• Employers
• need more information/education about EITC
• are concerned about protecting employees against
  
• embarrassment and intrusion on their privacy
• are concerned about covering time away from work
  
• are concerned about having a positive image of
  corporate
• social responsibility
• are interested in providing increased income for
  employees
• want employees to respect the company
• want to provide employees with an easy to read
  toolkit for EITC
• would like to be able to point employees to a
  website
• Employers are, unfortunately, not highly
  motivated to take action to help their employees
  take advantage of EITC.

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• Recommended Action Steps

• Educate employers.
• Make it easy for employers to provide easy to
  read toolkits and/or website to employees.
• Help employers see how involvement in EITC
  improves their image as a company concerned about
  social responsibility.
• Help employers see how involvement in EITC
  improves their relationship with employees.
• Help employers protect employees confidentiality
  and privacy.

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Extension Helps Families Access EITC

• Spread the word about EITC to families,
  employers, policymakers
• Become involved in regional EITC promotion
• Teach families financial anagement management
  skills

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Fact Sheet What Extension Faculty, Staff, and
Volunteers Can Do

• The Earned Income Tax Credit (EITC) is a credit
  for low- and moderate-income workers. Eligible
  workers can get the EITC benefit as a refund
  even if they owe little or no income tax. The IRS
  reports that up to 25,000 West Virginia working
  families are eligible for EITC yet they do not
  file for it. This results in millions of
  unclaimed dollars each year. It is also a lost
  opportunity for local economies.

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What Extension Faculty, Staff, and Volunteers
Can Do (cont.)

• Learn about EITC and become familiar with the
  free materials from the West Virginia Statewide
  Coalition and Extensions EITC Team. Here are
  ways WVU Extension can be an effective EITC
  outreach partner to help working individuals and
  families receive this credit

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What Extension Faculty, Staff, and Volunteers
Can Do (cont.)

• Become a free tax preparation volunteer. No
  experience is necessary.
• Provide space in your Extension Office for a free
  Volunteer Income Tax Assistance (VITA) site.
• Encourage businesses, industries, and agencies to
  provide free income tax assistance on-site.
• Recruit volunteers for VITA sites, to do taxes,
  or provide general help.

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What Extension Faculty, Staff, and Volunteers Can
Do (cont.)

• Educate families by linking EITC efforts to
  asset-building initiatives in your outreach
  programs. For working families, the EITC credit
  can provide income for achieving long-term family
  financial stability.
• Ask local banks and credit unions to offer no-fee
  accounts.
• Become a member of a regional EITC coalition.
  Every West Virginia county belongs to one of
  seven coalitions.

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What Extension Faculty, Staff, and Volunteers Can
Do (cont.)

• Promote EITC awareness and use the campaigns
  copy-ready materials. Include EITC and VITA site
  information in your newsletters, media
  activities, news releases, and office displays.
  Distribute EITC outreach materials to community
  organizations, businesses and employers,
  government leaders, churches and faith-based
  institutions, civic groups, schools, afterschool
  and childcare programs, and community partners
  such as 4-H and CEOS clubs, Farm Bureau, and FRN.
  

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What Extension Faculty, Staff, and Volunteers Can
Do (cont.)

• Participate in National EITC Awareness Day on
  February 1, 2008.
• Include EITC materials in our literature at WVU
  Day at the Legislature on February 19, 2008.
• Your know your communities, clientele and
  volunteers best! Please help every eligible
  family to claim their EITC credit. For
  additional outreach materials or further
  information dial 2-1-1 or visit the West Virginia
  EITC Website at www.wveitc.com .

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Extension News ReleaseAsk Them Are You
Eligible for Earned Income Tax Credit?

• Note to Agents Adapt this article to reflect the
  availability of Volunteer Income Tax Assistance
  sites in your community. For details, visit the
  Web (www.wveitc.com) or call 2-1-1, which is the
  toll-free connection to community services in
  West Virginia. Please adapt this column to
  complement your media needs.
• For Immediate Release
• After you ask yourself this valuable question,
  also ask your relatives, friends and co-workers
  
• Are you eligible for the Earned Income Tax
  Credit?
• For many, that question can be the first step
  toward receiving as much as 4,716 in Earned
  Income
• Tax Credit from the IRS estimates that each year
  eligible West Virginians leave more than
• 20 million unclaimed. Those dollars could be
  used to pay bills, open savings accounts,
  increase
• savings and improve lives in many ways.
• EITC is a tax credit for people who work but
  dont earn high incomes. If you are between the
  ages of
• 25 and 65, you may qualify for EITC if you made
  less than 40,000 in 2007. Do not confuse the
• Earned Income Tax Credit with the Child Tax
  Credit. You may qualify for one or for both. But
  you
• and your family and friendsmust file for the tax
  credits to receive the money. In fact if you are
  
• eligible, you can claim EITC for three years
  back.
• If youre beginning to envision mountains of IRS
  forms, dont worry. Free tax help is available.
• Volunteer Income Tax Assistance (VITA) sites
  provide free tax preparation. Returns can be
• filed electronically and deposited into your
  bank account within seven to 10 days.

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Follow Up.Ongoing

• Surveys provided to other West Virginia
  coalitions so they may collect data in their
  regions
• Meetings held with Chambers and businesses
• EITC inserts placed with all WVU paychecks in
  December

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Recommended Resources

• West Virginia Alliance for Sustainable Families
  304-342-6972 or www.wveitc.com
• Internal Revenue Service www.irs.gov
• Center on Budget and Policy Priorities free tax
  credit kits 202-408-1080 or email
  center_at_center.cbpp.org
• The Brookings Institution policy and research
  publications www.brookings.edu