Volunteers Help Families Finance Their Future

Suburban MD Permit No. 3905 Volunteers Help Families Build Economic Opportunities Volunteers across the country work in partnership with networks of nonprofits, businesses, and government agencies to help low-income families get the money they deserve under the Earned Income Tax Credit (EITC). When these local tax coalitions work with eligible families to get this tax credit, families can build savings, pay off debt, finance a car, start a business, or fund children’s education. The Points of Light Foundation & Volunteer Center National Network is committed to supporting and improving the lives of children and families by engaging more volunteers more effectively in the efforts of local tax coalitions nationwide. We invite you to join us in building a stronger economic future for low-income families! This brochure and our new website, www.PointsofLight.org/EITC, is intended to help your organization or business become a key EITC partner. Volunteers Help Families Finance Their Future Nonprofit Organization US Postage PAID Facts about the Earned Income Tax Credit: EITC gives families opportunities to build savings and assets for a stronger financial future. 1. It’s a hand up, not a hand out. EITC gives working people and families tax money back through a tax credit program that Congress passed in 1975. 2. It lifts families and children out of poverty – nearly 5 million each year. But millions of eligible families don’t know how to get it. 3. A family can receive up to $4,204 annually through EITC. Working families earning $34,692 or less may be eligible for the tax credit, even if they didn’t earn enough to pay taxes. 1400 I Street, NW; Suite 800 Washington, DC 20005-2208 Earned Income Tax Credit www.PointsofLight.org/EITC www.PointsofLight.org/EITC Strengthening Families’ Financial Futures Community leaders from Volunteer Centers, nonprofits, businesses, government agencies, schools, and churches build local coalitions to connect targeted low-income communities to opportunities for free tax preparation. In addition, these coalitions may provide opportunities to working families and other eligible people to: s The Government Works to Promote EITC The Internal Revenue Service and local government agencies help convene coalitions of businesses and nonprofits in 177 communities to ensure that families get the EITC money they deserve. Agencies are: s s s Nonprofits Tap Their Resources Locally and nationally, nonprofit organizations, including faith-based organizations, further their missions through their engagement in local tax coalitions. Using their position within local communities, non-profits are: s Providing volunteers Connecting their constituents and communities to free tax preparation Raising awareness and providing leadership to local EITC efforts Providing information on financial literacy and asset development Hosting free tax preparation sites Marketing EITC to eligible individuals and families Providing information and resources to link free tax preparation with homeownership and financial literacy Training volunteers to prepare taxes s s s Open bank accounts to access their refunds faster and can begin saving right away without falling prey to costly predatory lenders Participate in free financial literacy classes Learn about building their assets and starting Individual Development Accounts, which match dollars saved by families s An Example: In Michigan, the Kalamazoo County Earned Income Tax Credit s s Schools and Universities Help, Too From elementary schools to colleges, students and teachers do their part in connecting community members to this much-needed service by: s Initiative prepared 644 tax returns for the 2002 tax year. 147 of these returns were EITC filings that brought a total of $47,580 for low-income families. 34 volunteers contributed their time and talent at 25 tax preparation sites across the county. The Initiative brought together 20 community partners, including the Volunteer Center of Greater Kalamazoo, the Chamber of Commerce, Bowers Manufacturing, the AARP and Bank One. The bottom line: the average eligible family received $324 in tax credit. Volunteers are the Link Volunteers play a crucial role in empowering low-income families to achieve a more secure economic future. Volunteers from all backgrounds and abilities play a role in free tax preparation services, and don’t need to be an accountant to help. Volunteers: s s s s s Opening their doors to serve as free tax preparation sites Teaching financial literacy courses to EITC recipients Enlisting staff and students as volunteers Spreading the word in their communities about free tax preparation and EITC s s s Local and National Businesses Reach Out Local and national businesses strengthen local EITC initiatives by tapping employee skills, using company communication channels, and offering business expertise. They are: s s s Greet the people who come for free tax preparation Prepare taxes Share information about financial literacy and asset building opportunities Serve as translators Provide childcare for families having their taxes done What You Can Do Learn more about becoming involved in EITC, free tax preparation and asset development opportunities through volunteer engagement! Visit www.PointsofLight.org/EITC Enlisting employee volunteers Promoting free tax preparation in their companies and communities Helping people become financially literate and access asset development services Sponsoring free tax preparation sites Residents of low-income communities play a special role in local tax coalitions. These volunteers bring credibility, time, and talent necessary to effectively spread the word about the service within their community and help neighbors. s Contact your local Volunteer Center to find out what’s happening in your local community. Call or visit 1-800-VOLUNTEER.org. For more information on how EITC helps families: National Community Tax Coalition www.tax-coalition.org National Tax Assistance for Working Families Campaign www.eitc.info Center for Budget and Policy Priorities http://www.cbpp.org/eic2004/index.html The Internal Revenue Service www.irs.gov Volunteer Centers Take the Lead Over the last few years, Volunteer Centers have begun taking the lead in expanding local EITC Initiatives through the effective utilization of volunteers. Volunteer Centers across the nation are: s s s s Recruiting diverse volunteers to fill EITC service opportunities Training and managing volunteers Building the capacity of tax coalitions to effectively work with volunteers Promoting EITC and the role of volunteers in connecting eligible families to this resource Convening partners to build and strengthen coalition efforts’ through effective volunteer engagement s This brochure is made possible with support from The Annie E. Casey Foundation.