The Virginia Community Action Partnership believes the significant increase in free tax preparation activity during the January 15 through April 15 2009 filing season is due to the success of the EITC grant program and expansion of coalitions working with free tax preparation throughout the Commonwealth.

• $22 million in federal refunds
* Over 21,300 federal returns filed

• $3.4 million in state refunds
* Over 19,000 state returns filed

• $8 million in EITC refunds
* 6,000 taxpayers claiming EITC
* $4.2 million saved in tax preparation fees

Compared to the 2007 tax season, this represents:

• 21% increase in the number of returns prepared
• 52% increase in the amount of federal refunds

The modest state-funded $218,500 EITC Grant program (average grant $8,400) resulted in 825 volunteers working with 28 coalitions to provide free tax preparation and financial education services at over 120 sites throughout Virginia. The Virginia Office on Volunteerism and Community Service estimates the value of volunteer time to be $20.53 per hour. This means an $808,800 value to the program and communities where these volunteers live and work.

The Virginia Community Action Partnership (VACAP) EITC Initiative supports community groups and coalitions throughout Virginia that provide free tax preparation services and promote financial literacy, savings and asset building to low income working individuals and families. The Virginia CASH Campaign (Creating Assets, Savings and Hope) gives the program an identity that can be used by the coalitions to engage community partners in their work. State wide partners in the Virginia CASH Campaign include the Virginia Department of Social Services (VDSS), Department of Housing and Community Development (DHCD), the Internal Revenue Service (IRS) and the State Information Technology Consortium (SITC). Collectively the mission is to raise awareness of the EITC, especially among eligible recipients, and to provide free tax preparation services by certified volunteers. We encourage financial literacy and education, savings and asset building programs to enable clients to work toward self-sufficiency.

In September, 2008, VACAP co-hosted the Common Cents Conference with Maryland CASH and DC EITC. This two-day regional conference was an opportunity for free tax preparation coalitions to learn about the financial problems facing residents and innovative program models to help residents achieve success in building assets. Among the workshops were volunteer coordination, marketing and sustainability, linking benefits to economic success, working with educational institutions and linking the free tax preparation program with the Individual Development Account program. Over 150 coalition partners (50 from Virginia) also heard the inspiring keynote speech from Meizhu Lu as she spoke on her book “The Color of Wealth". The EITC grant program was also announced at the conference.

The EITC grant proposals were due at the VACAP offices on October 1, 2008. Twenty-six grant recipients were notified of successful proposals on October 17, 2008 and funds were disbursed on October 24, 2008. Each coalition submitted a budget and plan as to how the grant funds were to be used throughout the year. The largest allocation is for personnel costs: site and volunteer coordinators, AmeriCorps positions or already established positions within an organization taking on additional tax season responsibilities (50%).

Advertising and printing costs for marketing, education and outreach materials totaled 14% of the total budget. Training and travel expenses for the 26 coalitions totaled 10%. Equipment and supplies totaled about 12%.

VACAP maintains a website dedicated to the CASH Campaign. www.vaeitc.org provides timely information to EITC partners and clients throughout the year, but especially during tax filing season. Coalition information, data, flyers, asset building links, news articles, PSAs and funding resource information is readily available. This key component links all coalitions and assists in communication and sharing best practices, especially during tax season. Between January and April 2009, the site averaged 3,100 visits per month.

A key component to the CASH Campaign this year was the partnership with the State Information Technology Consortium. Through a federal grant, SITC worked with VACAP to produce four webinars focusing on “Helping Virginians Build Assets". Offered between November 2008 and March 2009 the webinars proved valuable as travel budgets were limited. Guest speakers were experts on topics ranging from tax law to financial education to matched savings to public relations.