The delay in the start of the tax filing season did not stop our coalitions from providing excellent free tax preparation services to over 26,000 clients. This year, 25 coalitions working with free tax preparation programs throughout the Commonwealth received funding from the Earned Income Tax Credit grant. VACAP distributes 100% of the funding to the coalitions. The Virginia CASH Campaign highlights include:

• Over $34.7 million in federal refunds
o Over 26,000 federal returns filed

• Almost $13 million in EITC refunds
o Over 8,100 taxpayers claiming EITC
o $5.2 million saved in tax preparation fees

• Over $4.6 million in state refunds
o Over 24,000 state returns filed

Compared to 2011, this represents:
• 9.1% increase in the amount of federal refunds
• 16% increase in the number of EITC returns prepared

The modest state-funded $185,725 EITC Grant program (average grant $7,400) resulted in 1,274 volunteers working with 26 coalitions to provide free tax preparation and financial education services at 135 sites throughout Virginia. The Virginia Office on Volunteerism and Community Service estimates the 2012 value of volunteer time to be $24.64 per hour. The Virginia CASH Campaign volunteers contributed over 57,000 hours of tax preparation to the program. An additional 12,000 hours were contributed for tax training. This equates to over $1.7 million value to the program and communities where these volunteers live and work. Grant funds leverage over five times the amount in volunteer time.

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 modest 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 and federal partners in the Virginia CASH Campaign include the Virginia Department of Social Services (VDSS), Department of Housing and Community Development (DHCD), and the Internal Revenue Service (IRS). 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 August 2012, VACAP hosted Common Cents Conference in Bethesda Maryland, a two-day workshop conference in partnership with Maryland CASH and DC ETIC that brought over 150 free tax program practitioners together to learn about innovative program models for free tax preparation services and how to help residents achieve success in building assets.

The EITC grant was announced at Common Cents and completed proposals were due at the VACAP office on October 4, 2012. Twenty-five grant recipients were notified of successful proposals on October 25, 2012 and funds were disbursed on October 29, 2012. 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 costs (60%).

Coalition advertising and printing costs for marketing, education and outreach materials totaled 13% of the total budget. Supplies and equipment was about 8% of the total. Travel to meetings and conferences totaled about 4%. Other smaller amounts were used for rent, telephone, training, volunteer recognition and administrative costs.

VACAP maintains a website dedicated to the CASH Campaign, http://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 for viewing and download. This key component links all coalitions and assists in communication and sharing best practices. Between January and April 2013, the site averaged over 2,300 page views per month with an average of 1,600 visits per month. During the rest of the year the site averages almost 1,800 page views per month. VACAP co-hosts monthly conference calls and along with the IRS provides an opportunity for partners to learn and share throughout the year.

The coalitions provided customers important information regarding the new direct deposit option for Virginia refunds. Most coalitions reported very few problems or complaints about the change in refund options.

VACAP is an affiliate of the National Community Tax Coalition which provides valuable training and technical assistance to affiliate and coalition members.