RD759 - Report on the Virginia Community Action Partnership Earned Income Tax Credit Initiative Virginia CASH Campaign – December 1, 2022
Executive Summary: Because of their experience with the extraordinary tax filing seasons of 2020 and 2021 due to COVID complications, the coalitions making up the Virginia CASH Campaign were well positioned to continue their modified and virtual tax preparation work into this filing season. Managing multiple service delivery models became the norm with program managers and site coordinators discovering new ways to engage new and existing volunteers, communicate with sometimes reluctant clients and continue to provide service while trying to get back to a normal filing season. Twenty-one coalitions working with community volunteers received funding from the Earned Income Tax Credit grant. VACAP supports this program with its own funds and receives none of the appropriation for administering the grant program. The Virginia CASH Campaign highlights from January-July 2022: • $26 million in federal refunds • $7.7 million in EITC refunds • $3 million in state refunds • Over 650 Volunteers The modest state-funded $185,725 EITC Grant program (average grant $8,800) resulted in over 650 volunteers working with 23 coalitions (two coalitions did not apply for funding) to provide free tax preparation and financial education services at over 80 Volunteer Income Tax Assistance sites throughout Virginia. Due to inflation and the static appropriation level, sites are consistently struggling to maintain the same level of service as grant funds have not kept up with he level of need. Many sites have experienced significant turnover in their staff who manage the program, which includes coordinating volunteers and marketing the program. The sites have continued to demonstrate local and regional leadership in making these programs national models and see the need for this service growing exponentially. More coalitions are offering Facilitated Self-Assistance which allows clients to file their own taxes where help is available if needed. Independent Sector estimates the 2022 value of volunteer time nationally at $29.95 per hour. In Virginia, the value is $29.14/hour. The Virginia CASH Campaign volunteers contributed over 26,000 hours of tax preparation to the program. Staff hours for the VITA program exceeded 15,000 hours. Additional hours were contributed for tax training and financial education. This equates to more than $1.2 million in value to the program and communities where staff and volunteers live and work. |