Northside Community VITA Program Is a Success
By Don Wedd, Member Services Manager, National Community Tax Coalition
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Why would CCDO fund free tax preparation? Why would a retired 33-year veteran of the Internal Revenue Service (IRS) take a modest stipend to work at a Volunteer Income Tax Assistance (VITA) center? How could five volunteers run a free tax preparation site for the whole season? The Northside Community Weed and Seed site in Birmingham, AL, discovered the answers in 2006—the first tax filing season in which they established a VITA center.
Getting Started
Northside Community Weed and Seed was officially recognized as a Weed and Seed site in January 2002, receiving $225,000 in grant funds from DOJ the next year. The Northside Community consists of the Central City, Druid Hills, and Norwood neighborhoods and is home to approximately 10,300 residents and 4,300 households.
The Weed and Seed strategy involves a two-pronged approach: law enforcement agencies and prosecutors cooperate to "weed out" violent criminals and drug abusers, and public agencies and community-based private organizations collaborate to "seed" much-needed human services into the area, including prevention, intervention, treatment, and neighborhood restoration programs. A community oriented policing component bridges the weeding and seeding elements.
Northside Community Weed and Seed's venture into free tax preparation was the result of a partnership between DOJ and the IRS in which numerous Weed and Seed programs were selected to become part of the VITA center program. DOJ provided hardware, software, and technical assistance, and the IRS provided training on TaxWise software.
Terrie Lee-Burrell, Director of Northside Community Weed and Seed, could tell that there was real need for a free tax preparation service—ads for refund-anticipation loans peppered every corner.
During its first year, 2006, the VITA program's goal was to prepare 100 tax returns. It had no funding, no experience, and no staff. Lee-Burrell learned by trial and error, with advice from the local IRS's Stakeholder Partnerships, Education and Communication (SPEC) office. She recruited 5 volunteer tax preparers from a local bank and college and from the Community Action Agency. Local residents volunteered as greeters, answered the phones, and scheduled appointments.
In no time at all, these VITA volunteers were overwhelmed. The city of Birmingham distributed fliers about the VITA program to all 99 neighborhoods in the city, not just the 3 that the VITA program covered. The phone would not stop ringing. People from all over the city wanted to know about the Earned Income Tax Credit (EITC), about the VITA program and whether it was really free, and whether they would take appointments.
Yes, they did schedule appointments, but they would also take walk-ins if a tax preparer was free. The service was open for 3 days during daytime hours, and in the evening for another day. Yes, it was free indeed.
Lee-Burrell soon realized they did not have enough volunteers to staff the site for all those hours. The volunteers persevered to the end of the season, however, and they completed 115 federal returns. In addition, they opened 15 bank accounts onsite and held 2 financial education classes. All 5 volunteers returned in 2007.
What made the effort worthwhile, according to Lee-Burrell, were the clients. Ninety percent were single parents, and 85 percent rented. For many of them, this was the first time anyone had suggested that their tax refund could be the basis for changing their economic circumstances rather than just a temporary windfall. Volunteers took the opportunity to counsel people on home ownership; to encourage them to open Individual Development Accounts (IDAs), a type of savings account designed specifically for saving money to buy a home and matched in part by government funds; and to educate them on other possibilities. Many of those people are repeat customers in 2007.
"We're really treating the whole person, really building an economic asset," Lee-Burrell said. "Owning your own home is a possibility, and we can show you how."
Lessons Learned
What advice would Lee-Burrell offer a new VITA center, now that she has been through the startup herself? Plan a year in advance. Make sure you have volunteers who are well trained, who understand the scope of program, and who know the other services the program offers. Write up job descriptions for volunteers, and have them sign volunteer agreements. Make sure you have enough people to cover the center every day of the tax filing season. Get the Form 8453s (signatures for electronic filing) to the IRS on time, and make sure they are signed. And make sure there is a play space for children at the site.
The tax site is one of the safe havens of the Northside Community Weed and Seed program, helping connect taxpayers with other Weed and Seed programs. When you are assisting people in restoring their financial situation and building their personal assets, you are accomplishing the seed aspect of the Weed and Seed strategy.
Lee-Burrell recalled an older couple who had their taxes prepared last year. They had always paid $250 to file their tax returns at a commercial preparer. They talked about the things they could do with their refund, how they would split it, and how they would save money. In the past, they used refund-anticipation loans, did not understand what the fees were for, and were just happy to get a refund. Now they don't mind waiting 10 days to get a direct deposit of their refund without paying any fees. This year, when the site was closed for several days due to a lack of heat, the couple called each day to ask when it would reopen and turned up with their paperwork as soon as it did.
Easier the Second Time
This year is off to a good start, with some free media. Not only did the same five volunteers come back, but the program obtained some funding that it split among two seasonal staff. Eva Carter, a retired dean of business at Lawson State Community College, has worked in the VITA program, which began about 30 years ago, for 25 years, and is now the site manager. Carolyn Hatcher, the quality reviewer, is a retired IRS employee. Both say they still get excited when a client walks in.
One such client was a young woman who received a $5,600 refund last year. The single mother had rented her home for 10 years as a single parent, and never considered home ownership. After Lee-Burrell referred her to the Community Action Agency for home ownership counseling, she learned about IDAs and started to dream about owning her own home.
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For more information, contact:
National Community Tax Coalition
