Purpose

The Virginia CASH Campaign (Creating Assets, Savings and Hope) was created to help low- and moderate-income workers move toward greater self-sufficiency (a) by receiving the federal Earned Income Tax Credit (EITC) that can supplement earnings and (b) through financial literacy and other asset-building activities.

Description

The Virginia Community Action Partnership (VACAP) serves as the lead organization, along with the Virginia Department of Social Services and the IRS, for the Virginia CASH Campaign.  CASH stands for Creating Assets, Savings and Hope.  Support is provided, including mini-grants through funding from the Virginia General Assembly, for the creation of coalitions involving local partners and volunteers - map of 2009 coalition partners - to address the following goals:

• Promoting the federally funded EITC program through education, outreach and awareness
• Providing free tax preparation to avoid the high cost of professional preparers and to avoid refund anticipation loans (RAL’s)
• Promote financial opportunities to the unbanked

Presentations are made at meetings (a) to provide data on the value of the EITC and (b) to encourage involvement of Community Action Agencies, Departments of Social Services, Head Start, faith-based groups, banks and credit unions, local governments, schools, IRS through VITA programs, HUD, and community service organizations.  Businesses, employers, community leaders, and companies interested in the financial health of the community are also encouraged to take on partnership roles.   A viewing of the Annie E. Casey Foundation's The Money Trap video is included at the beginning of each meeting to help generate a discussion on the financial challenges faced by communities and low-wage earners.

IRS EITC Information is made available, including IRS EITC Publications and a list of websites with EITC resources is provided.  Downloadable outreach and education materials are provided on www.vaeitc.org.

Localized data on EITC participation levels is included with the packet through information from the Brookings Institution EITC Initiative.  This offers ZIP code-level tax return information for states, metro areas, counties, cities, and towns for tax years 1997 through 2005 plus a User Guide and Data Dictionary.  

Information is also provided on Financial Education Resources that can be distributed as part of the Virginia CASH Campaign or used to develop additional financial literacy initiatives.  Some of these resources are included, along with others, on the Virtual CAP posting for Financial Literacy Education Resources.  United Way of America has developed the Financial Stability Partnership to strengthen communities by identifying and tacking the underlying causes of the financial hardship facing today’s families.  The Earned Income Tax Credit is identified as the largest and most effective federal aid program for low- to moderate-income workers and as a key Strategy to Increase Income - see Financial Stability Partnership brochure.

EITC Online Training Series

An EITC Online Training Series has been launched through a partnership between the Virginia CASH Campaign and the State Information Technology Consortium.  This includes access to webinar archives such as:

• Supporting VA EITC/Matched Savings Weekend
• Financial Education Resources for EITC Recipients
• What’s New This Tax Season? TY 2008 Tax Law Changes for Virginia’s Free Tax Preparation Sites
• Making the Link: Virginia’s Earned Income Tax Credit (EITC) Initiatives and Virginia Individual Development Accounts

VACAP is active with broader efforts to promote family self-sufficiency including promotion of Virginia Individual Development Accounts (VIDA) and serving as lead applicant for an Assets for Independence (AFI) grant to promote homeownership.  Accordingly, organizations are encouraged to combine EITC outreach activities with these and other opportunities for asset building among low- and moderate-income families.  The Assets Alliance is a capacity-building resource available to help organizations expand the number of individuals and families participating in Individual Development Accounts (IDAs) and asset-building opportunities.  

The State EITC Online Resource Center provides access to research and resources about state Earned Income Tax Credits and efforts to enact the credit in particular states. Various EITC outreach initiatives have been developed by a number of national organizations, with extremely helpful materials to build effective EITC campaigns.   

Tax Assistance for Working Families Campaign - Annie E. Casey Foundation

• Earned Income Tax Credits: Lessons Learned
• The Money Trap Documentary Series – Portrays real life stories of the financial difficulties that often ensnare families in rural America and gives practical advice on how to avoid them.  Available in English and Spanish and includes background papers, a list of resources plus a discussion guide.  Designed for use with consumers for EITC and Financial Literacy outreach or in waiting areas at tax preparation sites.  Materials available to accompany Avoiding the Money Trap include a User's Guide (English) – User's Guide (Spanish) and Discussion Guide.
• Assessing Quality EITC – Recommendations to maximize return accuracy and to promote confidentiality and customer service. 

  Money Talks! - Center on Budget and Policy Priorities

• Outreach Strategies
• Outreach Materials including EIC flyers in over 20 different languages
• Ten ways that various organizations and institutions can reach out to workers eligible for the EITC and the Child Tax Credit:  Businesses....Early Childhood Programs....Job Training Programs....Colleges and Universities....Housing Groups  

  Tax Credits Outreach Campaign - National Women's Law Center

• Resources for Advocates and Service Providers including a Toolkit for Advocates
• Tax Credit Resources for Parents
• Find Materials for Your State 

  EITC Employer Guide - Corporate Voices: Employers Supporting Working Families

• EITC Dates to Remember
• EITC Paycheck Stuffer and EITC Stored Value Cards
• EITC Poster

  EITC Toolkit - National League of Cities

• Sample Timeline
• Sample EITC Campaign Materials 

  National Community Tax Coalition

• Program Locator on community-based free tax preparation programs for low- and moderate-income workers in each state.

Outcomes

January - April 2008 Filing Season results:

• Overall Results
  • # Federal returns: 17,657 (57.3% increase over last year)
  • Total refunds = $15,020,185 (41% increase over last year)
  • Average refund: $851
  • Tax prep savings: $3,531,400 (approx. $200/return)
  • Economic Stimulus returns (paper): 5,177 
• EITC Results
  • EITC returns: 4,636
  • Total EITC refunds: $6,261,486
  • Average EITC refund: $1,351 
• State Results
  • State returns: 15,488 (60.3% increase over last year)
  • State refunds: $1,884,166 (15.8% increase over last year) 
• Volunteer Results
  • Volunteers: 877
  • Volunteer hours: 39,622
  • Volunteer rate: $19.92/hour (VEC)

The Virginia CASH Campaign was highlighted in the Spring 2007 Federal Reserve Bank of Richmond's MarketWise publication (see pp. 10-11). 

As part of state funding, VACAP submits a report to the Virginia General Assembly outlining past results and future plans of the VA CASH Campaign.  The December 2008 report includes information for each previous tax year - 2007, 2006, 2005, 2004, and 2003.

There were 25 coalitions with over 900 volunteers active in the Virginia CASH Campaign for tax year 2007.