The Virginia Community Action Partnership believes the free tax preparation activity during the 2010 filing season (January 15 through April 15) is due to the success of the EITC grant program and expansion of coalitions working with free tax preparation throughout the Commonwealth.

• Almost $26 million in federal refunds
* Over 19,000 federal returns filed

• Over $9.1 million in EITC refunds
* 6,400 taxpayers claiming EITC

* $3.7 million saved in tax preparation fees

• Over $3.5 million in state refunds
* Over 17,400 state returns filed

Compared to the 2008 tax season, this represents:

• 13% increase in the amount of federal refunds

• 7% increase in the number of EITC returns prepared

The modest state-funded $218,500 EITC Grant program (average grant $8,000) resulted in 879 volunteers working with 28 coalitions to provide free tax preparation and financial education services at over 100 sites throughout Virginia. The Virginia Office on Volunteerism and Community Service estimates the value of volunteer time to be $20.93 per hour. This means an $894,400 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, 2009, VACAP hosted the VACAP Fall Classic EITC meeting in Richmond, Virginia. This one day conference was an opportunity for free tax preparation coalitions across the state to learn about the financial problems facing residents and innovative program models to help residents achieve success in building assets. Sixty-five coalition partners were in attendance to learn about volunteer management and coordination and poverty in Virginia. The 2009 EITC grant program was also announced.

The EITC grant proposals were due at the VACAP offices on October 29, 2009. Twenty-seven grant recipients were notified of successful proposals on November 6, 2009 and funds were disbursed on November 12, 2009. Each coalition submitted a budget and plan as to how the grant funds were to be used throughout the year. The largest funding allocation is for personnel and training costs: site and volunteer coordinators, AmeriCorps positions or already established positions within an organization taking on additional tax season responsibilities (60%).

Advertising, website and printing costs for marketing, education and outreach materials totaled 12% of the total budget. Financial education and travel expenses for the 27 coalitions totaled about 9%. Equipment and supplies totaled about 12%. Other funds were for volunteer recognition, postage and administrative costs.

VACAP maintains a website dedicated to the CASH Campaign. www.vaeitc.org provides timely information to EITC partners, clients and funders 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 2010, the site averaged 6800 visits per month.

A key component to the CASH Campaign again 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 2009 and March 2010 the webinars proved valuable as travel budgets were limited. Guest speakers were experts on topics ranging from tax law to financial education and marketing strategies to partnering with financial institutions.