Increasing Access to Free Tax Clinics in Waterloo Region Pilot Project

Transcription

1 Increasing Access to Free Tax Clinics in Waterloo Region Pilot Project Evaluation Report, June 2011 Prepared by Opportunities Waterloo Region: Cheryl Ives, Manager of Community Engagement Bonnie McCutcheon, Tax Clinic Project Coordinator Edited by: Susan Barthos, President of Means To Live Foundation.

2 Table of Contents Financial Literacy in the Waterloo Region...2 Participation in the Free Tax Clinics Steering Committee...2 Previous State of Service...3 Improving Services...3 Long-term Goal:... 4 Medium-term Goal:... 4 Short-term Goal:... 4 Tax Clinic Meetings...5 Tax Clinics in the Waterloo Region...5 Mapping the Waterloo Region Clinics...7 Communication Strategy...12 Detailed Tracking...13 Pilot Evaluation Project...14 Summary and Next Steps Potential Partnership Opportunity Regional Government Volunteer Full-year Drop-off Program Sub-group Focus Areas Explore New Models of Clinic Ongoing Coordination Ongoing Challenges...19 Conclusion...19 Appendix A Summary of the Current State of Service...21 Appendix B Meeting Minutes...26 Appendix C Central List of All Tax Clinics Offered in the Waterloo Region...31 Appendix D: Information Flyers...35 Appendix E: Evaluation Workbook...39 Worksheet 1: Overview of All Tax Clinics with All Collected Data...39 Worksheet 2: Overview of Pilot Evaluation Project Clinics...39 Worksheet 3: Specific Data from All Pilot Evaluation Participants by Return..39 Evaluation Report, June of 40

3 Financial Literacy in the Waterloo Region The Waterloo Region has numerous organizations with programs aimed at increasing an individual s financial literacy, including (1) Money Matters through the Working Centre; (2) Lutherwood s focus on financial literacy; (3) Mosaic Counselling and Family Services credit counselling; and (4) Mennonite Central Committee s research on financial literacy. These programs address specific areas in improving an individual s understanding of financial management, while other programs assist individuals in a time of financial stress. The Free Tax Clinic steering committee brings together members from these four organizations, as well as other organizations, to focus specifically on tax clinics. Participation in the Free Tax Clinics Steering Committee Opportunities Waterloo Region has been coordinating a working group of over 25 community partners, agencies and individuals to explore the need to increase awareness of the potential benefits of filling out a tax return, and to improve free tax clinic availability. Members of the steering committee include: Table 1.0: Free Tax Clinics Steering Committee Organization Awareness of Low Income Voices ALIV(e) Canada Revenue Agency Certified General Accountant Deloitte/CA Volunteer Team Erb St. W Neighbourhood Association Kitchener Downtown Community Health Centre KW Chamber of Commerce Lutherwood Mennonite Central Committee Mosaic Counselling & Family Services Opportunities Waterloo Region Preston Heights Community Centre Ray of Hope Region of Waterloo Region of Waterloo Rockway Centre Salvation Army St. John s Kitchen Sunnydale Community Centre University of Waterloo Wilfrid Laurier University Wilmot Family Resource Centre Woolwich Community Services Working Centre YMCA Cross Cultures YWCA Cambridge Contact Isla Noel Gary Shantz Bev Brown Matt Flood Linnea D'Silva Nicole Wazir Art Sinclair Denise Muill Greg DeGroot-Maggetti Heather Cudmore Cheryl Ives Sharron Lirette Harry White Bob Theisz Janet Howitt Carolyn Cormier Roland Shea Jennifer Mains Linda Kruger Jocelyn Lui Eric English Marietta Wagler Don Harloft Jason Spenser Sunanda Sachdev Amy Slack Evaluation Report, June of 40

4 Previous State of Service The previous state of free tax services in the Waterloo Region is best understood by examining the three main stakeholders: clients, hosts and volunteers. Clients: Most programs and benefits for people on low incomes are only accessible through tax returns. However, many people living on low income do not file tax returns because they: o Don t understand why it s important o Find it difficult and complicated o Fear owing taxes and back taxes o Don t have the appropriate paperwork or ID o Fear bill collectors will find them o Cannot afford to pay for tax services o Don t trust the government Hosts: Several agencies and other supportive hosts engage or utilize volunteers, some of whom come through Canada Revenue Agency (CRA) training, some through the Institute of Chartered Accountants, and some through the Certified General Accountants Association, to provide free tax clinics. In previous years, there has been little or no sharing of information, services, volunteers or coordination of client requirements among hosts. Hosts are often completely booked with their own clients, using minimal advertising. There has been no outreach to individuals not associated with an agency or coordination among support organizations that already host clinics. Volunteers: Community agencies recruit and train their own volunteers. The CRA provides training to volunteers associated with a community agency. The Institute of Chartered Accountants, as well as the Certified General Accountants Association, currently recruit volunteers for a limited number of clinics. These volunteers are not trained by the CRA. Many volunteers will not be trained in dealing with the populations they are serving. The Institute of Chartered Accountants provides a manual which includes a section on how to serve marginalized populations. Improving Services Based on the existing state of service, the free tax clinic working group developed long-term, medium-term and short-term goals to improve services in the Waterloo Region. Through a one-time funding request to the Region of Waterloo, Opportunities Waterloo Region hired a part-time coordinator to address specific short-term goals in improving services for the 2010 tax year returns, and to lay groundwork for Evaluation Report, June of 40

5 Long-term Goal: To ensure that everyone in Waterloo Region who can benefit from filing a tax return, but cannot afford tax services, knows they can file a return for free, have ready access to free tax filing services, and see tax filing as beneficial. Medium-term Goal: Increase awareness, service delivery and access to free tax clinics through: Coordinated information about services Reduced overhead to agencies through supports Communication that reaches those who need it Effective evaluation Enough service, where and when needed, to meet community needs High quality and quantity of volunteers available to agencies/hosts Common communication materials for agencies/hosts Common standards and methods for agencies/hosts Understanding of the current state and identification of gaps Short-term Goal: The key recommendation was to hire a central co-ordinator (which was done in January 2011). The central coordinator focused their attention on these seven areas: 1) Facilitate Tax Clinic Committee Schedule meetings Facilitate meetings Provide notes and follow-up on actions 2) Develop and Implement a Communications Strategy Develop and maintain website Develop and distribute information flyers, promoting potential tax benefits and identifying where to find free tax clinics 3) Create and Maintain Central Contact Lists Agencies/locations and list of existing services, who they target, utilization, restrictions Volunteers qualified by CRA with keys Volunteers qualified by agencies for work with populations 4) Coordinate Services Determine the current state of service and where the gaps, opportunities and challenges exist Work with existing and new agencies/providers/locations to reduce gaps in availability and reach Identify, document and disseminate best principles among agencies Develop policies (standards, best practices) around privacy, qualification of volunteers Permit central booking for clients not associated with a particular agency Evaluation Report, June of 40

6 5) Track Outcomes Create and implement a method to track project outcomes 6)Training Create information sheets for agencies around organizing clinics and explaining how the clinics benefit them Create information sheets that agencies can use to encourage and attract volunteers Create information sheets that agencies can use to encourage and attract clients Coordinate among participants to identify common training standards and share materials/information Develop a method to support volunteers 7) Provide a central contact number for answering public questions and referring clients to clinics The remainder of the report focused on how these seven areas were addressed and the next steps for the 2011 tax season. Tax Clinic Meetings Following several meetings in 2010, Opportunities Waterloo Region hosted two steering committee meetings for Free Tax Clinics in 2011, addressing the 2010 tax year. Ten agencies were represented at each meeting, which provided a forum for information sharing and brainstorming on how best to offer a coordinated approach to free tax services in the Region. The 2011 meetings were held February 22, 2011 and April 5, The meeting minutes have been included in Appendix C. Tax Clinics in the Waterloo Region In the Waterloo Region, there are three types of clinics organized by (1) Chartered Accountants (CAs); (2) Certified General Accountants (CGAs); and (3) the Community Volunteer Income Tax Program (CVITP). The clinics have different eligibility criteria and varying numbers of volunteers. 1. Institute of Chartered Accountants (CAs) For the 2010 tax season, the CA volunteers partnered with seven organizations in the Waterloo Region, including: The Office of Gary Goodyear, M.P. Mosaic Counselling & Family Services Palaunder St. Mosaic Counselling & Family Services Queen St. KW Access-Ability Centre CMHA Cambridge CMHA Kitchener Waterloo Regional Homes for Mental Health To be eligible to access a clinic run through the Institute, a client must meet the following criteria: Individual with no dependents earning $20,000 or less Married / Common law with dependents earning $30,000 or less. Evaluation Report, June of 40

7 Matt Flood (Deloitte & Touche) coordinates the volunteer CAs, as well as the partnerships with the host agencies. The CAs only volunteer in the month of March and cannot help out in the month of April. In total, there were 115 CA volunteers this year. 2. Certified General Accountants Association (CGAs) CGAs in the Waterloo Region partner with the Kitchener Public Library and Rockway Centre to offer free tax services to low-income senior citizens. To be eligible to access a clinic run through the Association, a client must meet the following criteria: Serving only senior citizens who receive the Canada Pension (i.e. Canada Pension benefits, Old Age Security and/or Disability benefits): o Individual $26,000 or less o Married or Common-Law $30,000 or less In total there were 27 CGA volunteers this year. 3. Community Volunteer Income Tax Program (CVITP) The CVITP is a CRA partnership with community organizations that host tax preparation clinics, where volunteers help to prepare returns for eligible individuals. Canada Revenue Agency provides training and software to volunteers of community organizations that host tax preparation clinics. There are twenty organizations in the Waterloo Region that recruit their own volunteers and coordinate tax training through the CVITP program. Cambridge Langs Farm Association Preston Heights Community Centre Region of Waterloo Employment Resource Area *Salvation Army YWCA Cambridge Small Steps to Success Kitchener *Chandler Mowat Community Centre *Courtland Shelley Community Centre *Kitchener Downtown Community Health Centre Lutherwood Region of Waterloo Employment Resource Area Rockway Centre Working Centre YMCA Cross Cultures Waterloo Erb St. W Neighbourhood. Region of Waterloo Employment Resource Area *Sunnydale Community Centre University of Waterloo *Wilfrid Laurier University Township of Wilmot and Township of Woolwich *Wilmot Family Resource Centre *Woolwich Community Services Evaluation Report, June of 40

8 NB: An asterisk is marked if the community centre only offers services to local community residents. To be eligible to access a clinic run through the CVITP, a client must meet the following criteria: Individual $25,000 or less Married or Common-Law couple $35,000 or less Single Parent with one child $30,000 or less (add $2,000 per additional child) Interest income limited to under $1,000 Volunteers cannot help with income tax returns for deceased individuals; bankruptcies; capital gains or losses; employment expenses; or business/rental income and expenses. The volunteers at The Working Centre follow the LICO (Low Income Cut Off) guidelines as eligibility criteria for clients: Table 2.0: LICO eligibility guidelines Size of Family Unit Income 1 Person $22,229 2 Person $27,674 3 Person $34,022 4 Person $41,307 5 Person $46,850 6 Person $52,838 7 Person $58,827 Each additional person $ 5,989 A central contact list of agencies offering free tax services, target population, restrictions, contact information and 2011 clinic times are included in Appendix B. Mapping the Waterloo Region Clinics The following maps display the locations of free tax clinics in Waterloo Region. Colours differentiate clinics by types of clients served. While central Kitchener and many of Kitchener s outlying areas have clinics on bus routes and accessible through community centres, Cambridge and the Townships have few clinics, and sections of Waterloo remain under-served. Evaluation Report, June of 40

9 Mapping the Tax Clinics of the Waterloo Region Eligibility Open to the public Criteria CRA Open to the public CA Open to the public LICO Community residents CRA Senior citizens CGA Clients of organization CA New Canadians CRA pswd: waterlooregion My Maps Evaluation Report, June of 40

10 Free Tax Clinics in Cambridge and North Dumfries 1. CMHA Cambridge 2. Langs Farm Association 3. Preston Heights Community Centre 4. Region of Waterloo Employment Resource Area and Social Services 5. The Office of Gary Goodyear, M.P. 6. Salvation Army 7. YWCA Cambridge (inside Cambridge self-help food bank) Evaluation Report, June of 40

11 Free Tax Clinics in Waterloo 1. Region of Waterloo Employment Resource Area, 2. Erb St. West Neighbourhood Association 3. University of Waterloo Accounting and Finance Student Association 4. KW Access-Ability Centre 5. Wilfrid Laurier University Free Tax Clinics in Kitchener 1. Chandler Mowat Community Centre 2. CMHA Kitchener 3. Courtland Shelley Community Centre 4. Forest Heights Library 5. Kitchener Downtown Community Health Centre 6. Mosaic Counselling & Family Services 7. Mosaic Counselling & Family Services 8. Region of Waterloo Employment Resource Area, 1st floor 9. Rockway Centre 10. Waterloo Regional Homes for Mental Health 11. Working Centre 12. YMCA Cross Cultures Evaluation Report, June of 40

12 Free Tax Clinics in the Township of Woolwich 1. Woolwich Community Services Free Tax Clinics in the Township of Wilmot 1. Wilmot Family Resource Centre Evaluation Report, June of 40

13 Communication Strategy In previous years, a master list of tax clinics was distributed to community groups. This year, as a group, we decided to only use the website since it would be updated as clinics fill up. Not all tax clinic hosts opted to advertise on the website because their clinics already fill up quickly. A pilot website was created to advertise free tax clinics offered in the Waterloo Region: During the 2010 tax season of January to May, 2011, the site was viewed over 2,200 times. The tax clinic wordpress website was advertised through two other websites: and Information flyers promoting the potential tax benefits of filing a return, and identifying the locations of free tax clinics, were distributed by volunteers from the University of Waterloo. The posters were displayed at the following locations: Kitchener 1. Kitchener City Hall 2. Everest College 3. Kitchener Public Library 4. St. Andrews Church 5. The Working Centre 6. Centre for Family Medicine 7. St. Matthews Church 8. Benton St. Baptist Church 9. Betty Thompson Youth Centre 10. St. Paul's Lutheran Church 11. St. Peter's Lutheran Church 12. YWCA Community Resource 13. Kitchener Downtown Community Centre 14. Full Circle Natural Foods Waterloo 1. Waterloo City Centre 2. Waterloo public library 3. Waterloo regional library 4. Sports and recreation centre 5. Various Churches 6. Canada postal services office 7. Laundry Mat 8. Health services Centre Contacted by Electronic Distribution and Websites 1. Opportunities Waterloo Region newsletter 2. Food Bank of Waterloo Region 3. House of Friendship 4. Kijiji 5. Daily Bulletin (UW website) 6. St. Louis Adult Learning Evaluation Report, June of 40

14 After much discussion, it was decided that a central contact list of volunteers would not be compiled for the 2010 tax season. Each community organization recruits its own volunteers for tax clinics. Since the CVITP clinics in the Waterloo Region typically have only one to three volunteers, and clinics fill up very quickly, the coordinators were markedly hesitant about sharing their volunteers with other organizations. There were also concerns about how the volunteer information would be managed, and by whom. A central contact number was provided by Opportunities Waterloo Region to answer public questions and to refer clients to clinics. No more than ten calls were received. Information sheets to encourage and attract volunteers, clients and agencies were shared with all participants and are included in Appendix D. Detailed tracking Appendix E provides a detailed breakdown of available information on 2010 tax clinics in Waterloo Region that took place in early We were able to identify the following information from data provided by all participating hosts, including hosts that participated in the pilot joint evaluation project, and other hosts who provided partial information. Table 3.0 summarizes outcomes. # clinics offered: 150 clinics and 5 drop-off programs were offered at 30 hosts # volunteers: At 14 of the hosts, 259 volunteers donated their time. At 16 of the organizations, the total time volunteered was 1,575 hours. # tax returns filed: At 20 hosts, 1,867 tax returns were filed. # people turned away: At just four of the hosts, 131 people were recorded as turned away; of these, 70 were reported turned away from KW Accessibility and another 50 were reported turned away from MP Gary Goodyear s office. We cannot discern if these individuals were absorbed by other clinics or stopped attempting to file their taxes. Table 3.0: 2010 Tax Year/ 2011Free Tax Clinic Outcomes Summary # Clinics offered Total # clinic hours Volunteers hours Total # volunteers # Spots # Tax returns filed Turned away , ,539 1, at 30 hosts incl. 5 dropoff at 23 locations at 16 locations at 14 locations at 15 locations at 20 locations at 4 locations Evaluation Report, June of 40

15 Pilot Evaluation Project The tax clinic working group, in conjunction with a subset of participating agencies, expressed a desire to evaluate the impact of their services through a pilot evaluation program. Four areas were tracked: 1. Martial status 2. Number of dependents 3. Anticipated refund (or amount owing) 4. First three digits of postal code These four areas of focus took a volunteer approximately thirty seconds to record for each client, based on volunteer feedback. Tracking marital status and number of dependents provides a better understanding of the total number of people benefiting from the free tax service. The full scope of this tracking is detailed in Appendix D. Tracking the anticipated refund provides a powerful statement to clients, host organizations, volunteers, government and community as to the tremendous benefit of free tax clinics. Tracking the first three digits of each client s postal code enables us to map where the clients live relative to the current location of the various free tax clinics. Thirteen tax clinic hosts in the Waterloo Region participated in a pilot joint evaluation project by tracking detailed information about their free tax services: 1. Kitchener Downtown Community Health Centre 2. Region of Waterloo Employment Resource Area, Cambridge 3. Region of Waterloo Employment Resource Area, Kitchener 4. Region of Waterloo Employment Resource Area, Waterloo 5. Wilfrid Laurier University 6. Wilmot Family Resource Centre 7. Woolwich Community Services 8. Rockway Centre 9. Courtland Shelley Community Centre 10. Chandler Mowatt Community Centre 11. Preston Heights Community Centre 12. YWCA Cambridge 13. Sunnydale Community Centre In total, these thirteen organizations and their volunteers provided 1,370 Region residents with free tax services, returning more than $664,000 in tax refunds to people who live on low income. Table 4.0 summarizes outcomes. Evaluation Report, June of 40

16 Table 4.0: 2010 Tax Year/2011 Free Tax Clinic Pilot Data (by clinic host) Organization Location Target Wilmot Family Resource Centre Region of Waterloo Employment Resource Area Sunnydale Community Centre Wilfrid Laurier University Chandler Mowatt Community Centre Courtland Shelley Community Centre Kitchener Downtown Community Health Centre Region of Waterloo Employment Resources Rockway Centre Langs Farm Association Preston Heights Community Centre Region of Waterloo Employment Resources YWCA Wilmot Waterloo Waterloo Waterloo Kitchener Kitchener Kitchener Kitchener Kitchener Cambridge Cambridge Cambridge Cambridge # Clinics offered Total # clinic hours # Tax returns filed Dollars Returned to Community CRA- low income; only clients Drop-off n/a 53 $ 34, CRA- low income $ 118, CRA- low income; only community $ 11, CRA- low income; only WLU students $ 16, CRA- low income; only local comm $ 29, CRA- low income; only local comm $ 10, CRA- low income $ 4, CRA- low income $ 188, CGAs- Seniors with low income 1 8 $ 7, CRA- low income; only clients unknown 19 $ 17, CRA- low income; only local comm $ 27, CRA- low income $ 171, CRA- low income Drop off n/a 75 $ 27, ,185 $ 664, at 10 at 13 hosts at 9 hosts hosts at 13 hosts The average tax refund in the pilot program was $561. At non-pilot sites, 682 tax returns were tracked as filed. Several sites provided no indication of the number of returns completed. Applying the pilot program average refund to the known number of untracked returns expands the estimated dollars returned to community members by $382,600. Using this extrapolation, we can estimate that the total dollars returned to the community in the Spring, 2011 Tax Clinics exceeded one million dollars. Evaluation Report, June of 40

17 Summary and Next Steps The steering committee believes that more people could benefit from free tax services. However, people may still not see filing their taxes as beneficial or still not know of the free services offered. And, while our ultimate goal is to serve all members of our community who require assistance, we need to proceed slowly because the current state of service appears to be at capacity. As previously noted, the current tax clinics fill up with minimal advertising. We need to increase tax service capacity (more clinics, more drop-off services and more volunteers) before further advertising free tax clinics. 1. Potential Partnership Opportunity The review of the current state of service in the Waterloo Region uncovered a potential partnership to increase service capacity. This will require leadership from one organization to coordinate and maintain required relationships. Both the University of Waterloo (UW) and Wilfrid Laurier University (WLU) accounting students might provide an excellent option for increasing the number of tax clinic volunteers. To receive a professional accounting designation, accounting students must complete 100 volunteer hours of tax preparation. The UW Finance and Accounting Association offers free clinics to the community and to students. The WLU University Accounting Association offers free tax clinics only to students. Both organizations have expressed interest in broadening their scope and helping the community. From a location perspective, the Sunnydale and Amos Avenue facilities would be natural fits as tax clinic sites. The Region of Waterloo is interested in offering a year-round drop-off tax service to the public at each of its three Employment Resource Areas (ERAs). Low income individuals or families would drop off their income tax information at one of the ERAs. On a weekly basis, volunteers would either go into the ERAs and pick up income tax packages, or complete the income tax returns on-site. When the income tax return is complete, the individual would be contacted and directed to return to the ERA to pick up their completed income tax return. A partnership between the Region of Waterloo and the university accounting associations would offer accounting students the opportunity to accumulate their volunteer tax hours, and enable individuals and families with low income to file their taxes at any point during the academic year. The Institute of Chartered Accountants of Ontario would need to approve specific clinics in order for student volunteer hours to be accumulated for designation purposes. The Region currently does not work with the Institute on its clinics. 2. Regional Government Volunteer Full-year Drop-off Program The Regional Government has expressed interest in exploring the possibility of enlisting tax-completion volunteers from its own staff to create a volunteer pool for year-long drop-off services that could be made available to other clinics. This may prove less complicated and more manageable as a pilot for creating a centralized volunteer pool. If this is successful, perhaps other municipal governments or local businesses can be encouraged to participate. Evaluation Report, June of 40

18 3. Sub-group Focus Areas To improve both services and access to services, the tax clinic steering committee recommends forming three subcommittees to focus specifically on three areas: (1) Pre- Supports; (2) Volunteers; and (3) Drop-off Services. More specific information for the reasons for these choices can be found in the initial vision document, provided as Appendix E. 4. Explore New Models of Clinic Traditionally, the free tax clinic program has relied heavily on a few experienced volunteers to work with hosts who have established the internal processes necessary to run the clinics. Most hosts express frustration with the lack of resources needed to book appointments, remind individuals of their appointments, and work with individuals in the drop-off process. Clients who come to appointments with inadequate information, or who require additional assistance to gather their information, consume valuable volunteer time without significant results. One suggestion would be to change both the model and type of volunteers. Hosts could establish Getting Ready for Taxes clinics. Volunteers for these clinics would be trained to know what information is required to file a tax return, and be able to go through this information with clients in preparation for dropping off their returns. A second-tier problem solver (likely a host staff or central person) could support individuals who needed specific help with obtaining required identification or paperwork. The ID clinic at Kitchener Downtown Community Health Clinic (KDCHC) and the Money Matters program at the Working Centre might provide this type of run-off support in Kitchener. CRA-trained and accounting student volunteers could be utilized by hosts to actually complete the returns through drop-off programs, and would not require training to interact with specific marginalized populations. They could be supported by the hosts with tax return circles, in which several volunteers work in a room together for several hours to draw on each other s knowledge and experience, or they could complete the returns individually, at their own convenience. Given the shortage of tax return experience among volunteers, with only a handful of very experienced volunteers in the community, this approach could strengthen capacity. Separating the drop-off from the tax return completion would allow less-specialized volunteers to support the program, while reducing volunteer stress and increasing support to the clients. It would also designate tax specialist volunteers to work on return completion. Lutherwood, the Working Centre, Mosaic Family Counselling, KW Counselling or the Region of Waterloo may see value in integrating this approach into existing financial literacy programs. 5. Ongoing Coordination The Steering Group stated that ongoing coordination greatly supported their efforts by providing shared information; a central source of information for themselves and their clients; a contact for questions; and a sense of being part of a larger effort. With continued coordination, the hosts may be able to expand capacity (i.e. extend the duration of clinics), and potential hosts could be engaged to expand services to include tax clinics. Ideally, ongoing coordination would be adopted by a larger or regionally-based agency or government service body as a designated service. Steering Group suggestions for a Evaluation Report, June of 40

19 service provision agency included the Regional Municipality of Waterloo, Lutherwood, the United Way (under its Economic Security mandate), a local Social Planning Council or The Working Centre. If one host agency or government body was to continue providing coordination services for the next tax year, the main areas of focus would be: 1. Increasing tax clinic availability a. Work with hosts to enhance current tax clinics (increase days and hours) b. Recruit hosts to expand drop-off services c. Recruit new agencies to host tax clinics (especially in Cambridge) d. Seek community-based funding to reduce hosts overhead costs 2. Tracking outcomes a. Work with hosts and volunteers to increase the number of organizations participating in tracking b. Attempt to track the number of people in a family unit, dollar amount of tax refunds, first three digits of filer s postal code, and number of people turned away because clinic was full c. Build rapport with CRA clinics to track outcomes d. Appeal to CAs and CGAs to track outcomes and standardize their criteria for tracking outcomes 3. Communication to those who need it a. Strengthen information provided to outreach workers and ensure timely provision of information based on the tax filing season b. Strengthen information provided to social assistance workers and ensure timely provision of information based on the tax filing season c. Strengthen information provided to volunteers offering pre-support services to clients in soup kitchens, food banks, shelters d. Print and distribute posters e. Enhance, maintain and actively advertise website f. Participate with Money Matters and other community-based financial literacy projects 4. Establish a year round drop-off service in Waterloo Region a. Facilitate partnership amongst Region of Waterloo Employment Services Kitchener, Waterloo, Cambridge and UW and WLU Accounting Associations b. Explore a new model of clinic 5. Central database of volunteers with CRA training a. Coordinate with the CRA to work towards collection and sharing of volunteer information 6. Address marginalized population barriers to filing taxes a. Recruit new agencies to offer ID clinics b. Provide waivers for tax clinic volunteers (or staff?) to help access slips required for filing taxes CRA, Canada Customs, Social Services c. Work with the CRA for solutions to problems concerning lack of fixed address and required form fields d. Work with existing volunteer coordinators to develop training for volunteers to work with marginalized populations Evaluation Report, June of 40

20 7. Increase number of volunteers a. Approach Inter-Faith Coalition b. Volunteer Action Centre posting for agencies and for volunteers Ongoing Challenges Clinic Hosts continue to express concern that many marginalized individuals without strong community ties require free tax services, but are unaware of clinic availability or do not actively seek out tax clinics. Hosts express frustration that existing limited resources prohibit them from reaching out to additional populations. They also express concern that, even if these individuals come forward, the level of required pre-supports (assistance in obtaining paperwork, ID and other documentation) cannot be supported with existing resources. Proper identification represents a primary barrier to tax return filing, with only one ID clinic in downtown Kitchener and only ad hoc support elsewhere in the community. Other community organizations, such as Lutherwood, House of Friendship, Mosaic Family Counselling and the Money Matters network convened by The Working Centre, also share this concern. While the Institute of Chartered Accountants and the Certified General Accountants Association provide a significant volunteer base for the free tax clinics, they also use different eligibility criteria, with volunteers only available in March, and not during April, which is the heaviest usage month for free tax clinics. While CRA training is open to all interested community volunteers, clinic hosts and their volunteers indicate that without previous experience, many volunteers find it challenging to learn the software and processes required to complete returns. There are few experienced volunteers, and each of them supports many different community hosts, including the Regional government. The experienced volunteers tend to be seniors and are not always available to volunteer, which significantly and negatively impacts provision of these services in the community. Increasing strength and experience amongst volunteers remains a challenge. Individuals served may have multiple years of unfiled taxes, which is very difficult and time consuming for volunteers. Volunteers are unable to process these returns because they do not have the necessary CRA code to file them. A process for completing and filing multi-year returns, using dedicated and experienced volunteers, is needed. Our CRA contact indicated that there will be changes coming to how income tax refunds and tax benefits are paid in 2013, with benefits paid each month rather than in a lump sum. This may increase the number of individuals using the free tax clinics because paid tax preparers will no longer benefit from filing low income returns. Conclusion In 2011, the free tax clinic pilot evaluation sites injected more than $664,000 into Waterloo Region s economy. This money was placed in the hands of people who most benefit from these supports, and are most likely to spend their refunds locally. Extrapolating from the average dollars per refund filed in our pilot evaluation, we can estimate that the total dollars returned from all clinics in Waterloo Region in Spring, 2011 Evaluation Report, June of 40

21 exceeded $1 million. Many of the individuals served live with poverty or other forms of social marginalization and would not have filed tax returns without this assistance. In the Region of Waterloo, at least thirty different host organizations provide free tax clinics for their clients, with some offering services to all individuals who qualify based on income, and others offering services only to those they serve through their organization. In 2011 (2010 tax year), at least 150 clinics served over 1,800 residents. Hundreds of community-based volunteers, including many university students, donated 1,574 hours of their time to work at the clinics. Notably, a single volunteer at the Region of Waterloo s Kitchener Employment Centre completed hundreds of these returns by himself. This demonstrates the significant opportunity available to draw more effectively on volunteers, thereby helping host organizations to reduce costs associated with providing free tax clinics to the community. Individuals who may not otherwise file tax returns benefit from both the availability of services and information that attracts them to the services. The whole community benefits when all available supports become accessible to those requiring them, thereby reducing reliance on other social supports. As more programs for those with low incomes require tax return filing for access to specific income benefits, the Free Tax Clinic program becomes critical both for the service it provides, and for educational outreach about the importance of filing tax returns. Complementary strategies will be required to address ongoing barriers, increase existing capacity, and reach out to additional participants. Ideally, a large agency or government department will adopt coordination of the community s tax clinics into its existing mandate for a period of time, while supporting clinic hosts to serve their clients in a variety of ways. Continued coordination of common elements; agreed-upon processes and training; regular conversation and communication among hosts; and stronger partnerships with volunteer bases can strengthen current foundations and permit clinics to extend beyond the current client base, and to encourage and support increasing numbers of individuals. Ultimately, our community s health is enhanced when individuals understand and access all income that is available to them. The free tax clinic program benefits both individuals and the community as a whole. Increased coordination and support will permit the passionate and committed community-based organizations and volunteers who currently serve our community through free tax clinics to support more people in the future. Evaluation Report, June of 40

22 Appendix A Summary of the Current State of Service Current State: Many people able to file taxes and apply for benefits Clinics available where many people already go Appropriate, accessible hosts (primarily community centres) Strong demand Experienced volunteers Free services created (Region/CRA, CA, students) More programs require tax returns Many people can t afford tax services Filing taxes is complicated Desired State: Everyone in Waterloo Region who can benefit from filing a tax return and cannot afford tax services knows they can file a return for free, has ready access to services they need to do so, and see filing as beneficial 7 Focus Areas: Communication that reaches those who need it Enough clinics at times of year convenient to users Enough service available where and when needed, accessed by all those who require service Enough appropriate, accessible clinics in locations convenient to users Wellcoordinated service that provides choice & flexibility to clients High enough quantity of volunteers to staff enough clinics for demand Pre-return supports Welltrained volunteers working to a standard Strong demand Free services (Region/CRA, CA, students) More programs require Tax tax returns Returns Many people can t afford tax services Filing Taxes taxes is complicated Evaluation Report, June of 40

23 So what s in the way of Focus Area #1: Communication that reaches those who need it People don t understand the need to file a return People don t know the service is available Strong demand Free services (Region/CRA, CA, students) More programs require Tax tax Returns returns Many people can t afford tax services Filing Taxes taxes is complicated So what s in the way of Focus Area #2: Enough clinics at times of year convenient to users Clinic hours create barriers Limited time (not year round) creates barriers Strong demand Free services (Region/CRA, CA, students) More programs require Tax tax Returns returns Many people can t afford tax services Filing Taxes taxes is complicated Evaluation Report, June of 40

24 So what s in the way of Focus Area #3: Enough appropriate, accessible clinics in locations convenient to users More demand than clinics Not all those who would benefit go to community centres Elderly/disabled may require home service Not all community centres offer Transportation Strong demand Free services (Region/CRA, CA, students) More programs require Tax tax Returns returns Many people can t afford tax services Filing Taxes taxes is complicated So what s in the way of Focus Area #4: Pre-return supports Complicated to prepare for having a return done (collecting info, ID) and no current support No one currently resourced/funded to provide this support on a wide scale Strong demand Free services (Region/CRA, CA, students) More programs require Tax tax Returns returns Many people can t afford tax services Filing Taxes taxes is complicated Evaluation Report, June of 40

25 So what s in the way of Focus Area #5: Well-coordinated service that provides choice & flexibility to clients Lacking co-ordination between programs Some clinics too full, others too empty Lack knowledge between clinics to refer or handle overflow Strong demand More programs require Tax tax Returns Many people can t afford tax services Free services (Region/CRA, CA, students) Filing Taxes taxes is complicated So what s in the way of Focus Area #6: High enough number of volunteers to meet demand Too few volunteers Require more effective volunteer recruitment Strong demand More programs require Tax tax Returns returns Many people can t afford tax services Free services (Region/CRA, CA, students) Filing Taxes taxes is complicated Evaluation Report, June of 40

26 So what s in the way of Focus Area #7: Well-trained volunteers working to a standard Some volunteers not ready to support people with special needs Inconsistent experience and processes among volunteers Different training depending who is coordinating Strong demand More programs require Tax tax Returns returns Many people can t afford tax services Free services (Region/CRA, CA, students) Filing Taxes taxes is complicated What s Next? Have we missed any important barriers to achieving each of the 7 identified focus areas? Brainstorm ideas to address the challenges in each of the 7 focus areas Prioritize and select ideas to work on Establish goals and milestones for each selected idea Assign an owner and team members to each goal and milestone Evaluation Report, June of 40

27 Appendix B Meeting Minutes - unedited Free Tax Clinics in the Waterloo Region Meeting with Hosts of Free Tax Clinics February 22, 2:30 pm Attendance: Jason Spenser, The Working Centre Denise Muill, Lutherwood Nicole Wazir, Kitchener Downtown Community Health Centre Janet Howitt, Region of Waterloo Employment Services Major Roland Shea, Salvation Army Cambridge Cheryl Ives, Opportunities Waterloo Region Carolyn Cormier, Rockway Centre Heather Cudmore, Mosaic Counselling and Family Services Sunanda Sachdev, YMCA Bonnie McCutcheon, Opportunities Waterloo Region Regrets: Matt Flood, Deloitte & Touche- CA Volunteer Team Gary Shantz, Canada Revenue Agency Jocelyn Lui, University of Waterloo Linda Kruger, Sunnydale Community Centre Reviewed the MAP of all Free Tax Clinics offered in the Waterloo Region Recognized the complexity of different eligibility criteria based upon income level and place of residence and service provider. Reviewed the map for gaps in service to clients based on populations vulnerable to poverty and based on geography of the Waterloo Region. Advertising Free Tax Clinics on a central website A website will be used this year, rather than a master list. As clinic fill up, the website will be updated accordingly. Not all hosts opted to be advertised on the website since their clinics already fill up quickly. OWR will put together a website and distribute the link. Discussed creating a central database of information of CRA trained volunteers CRA volunteers already indicate their availability to Gary on an intake form, however that information is not readily shared, and traditionally volunteers remain with their agency. o Idea add a question to the intake form giving permission to be put on a central database of CRA trained volunteers. Every year, volunteers are trained by CRA, but not all of them volunteer their time. There s question of people s intention to volunteer or to receive training on taxes for personal benefit. o Idea volunteers could sign a form agreeing to volunteer a minimum number of hours as a condition of receiving training. Suggestion create a mentoring program for new agencies interested in become a host of free tax clinic. Evaluation Report, June of 40

28 Bonnie to follow up with Gary about CRA volunteer availability and training. Tracking outcomes evaluating the impact of our collective effort. This year, we are tracking the outcomes of our collective efforts in the community. We ensure the confidentiality of the clients we are serving. These numbers will only be used for summarizing of our efforts. At the end of the tax season, we will have an estimate of the total number of tax returns filed, the total dollar amount returned to constituents, and the barriers of offering more services. By assessing the current state of service in our community, we intend to put together a funding proposal for a Tax Clinic coordinator to assist the agencies in the community. Two forms: (1) Filled out by Coordinator of the Free Tax Clinic; (2) Filled out by volunteers to track each tax return. Clients with back taxes It is not accepted practice for CRA trained volunteers to file back taxes. That being said, there is a small handful of CRA volunteers at agencies in the Waterloo Region that have the ability to file back taxes and do so to be supportive of their clients. However the CRA actively discourages this practice. For multiple years, Langs Farm has referred clients to Salvation Army Next steps Website creation by OWR Investigate possibility of CRA Volunteer Database Tracking outcomes for this tax year -end- Free Tax Services in the Waterloo Region April 5, 2011 Attendance Isla Noel, ALIV(e) Gary Shantz, Canada Revenue Agency Heather Cudmore, Mosaic Counseling and Family Services Carolyn Cormier, City of Kitchener Rockway Centre Bonnie McCutcheon, Opportunities Waterloo Region Cheryl Ives, Opportunities Waterloo Region Bob Theisz, Region of Waterloo Nicole Wazir, Kitchener Downtown Community Health Centre Jim Parkins, KW Accessibility Centre Doug Cressman, Mennonite Central Committee Ontario Regrets: Denise Muill, Lutherwood Matt Flood, Deloitte & Touche Jason Spencer, The Working Centre Greg degroot-maggetti, Mennonite Central Committee Ontario Meeting Minutes Evaluation Report, June of 40

29 Roundtable introductions and comments regarding current tax clinics at host agencies: Organization Region of Waterloo (Cambridge, Waterloo and Kitchener offices) Comments Clinics are all fully booked now. As the month of April continues, there is a persistent problem with no-shows to scheduled appointments. Kitchener Downtown Community Health Centre Volunteers were not confident in filing taxes, required extensive staff support. Recognize that some people are better suited to helping people file their taxes than others KW Accessibility Clinic filled up very quickly. They referred approx. 80 people to other clinics. Noted lack of English skills created a significant language barrier. Mennonite Central Committee Ontario ALIV(e) Canada Revenue Agency Mosaic Counseling and Family Services Rockway Centre Conducting a review of financial literacy. Interested in free tax clinics in the Waterloo Region Represents the voices of low income families and individuals. Federal government will soon give out quarterly payments rather than a lump sum of money when tax returns are filed. The group discussed the need to communicate this change to clients who expect that money in April. Inserts urging clients to file taxes will be put into Ontario Works cheques in The group suggested the inserts be put in for early March. The March 9 th clinic had only a handful of clients whereas the next March clinic was full. The group discussed how clinics in March may be too early as people are not yet thinking of taxes. Chartered Accountants only volunteer during the month of March and do not volunteer during the month of April. City of Kitchener stepping back from volunteer management, especially in regards to tax clinics. Offered two clinics one through the Certified General Accountants and one in partnership with Stephen Woodsworth s office. The volunteers were not pleased having to sign more than one volunteer agreement form. Serving our Community Evaluation Report, June of 40

30 As a group, we recognized how there are more members of the community who could benefit from this service. People may not see filing their taxes as beneficial or do not know of the free services offered. While our ultimate goal is to serve the members of our community who require assistance, we need to be skilful as the current state of service appears to be at capacity. The tax clinics fill up with minimal advertising. For 2011 (2010 tax year), we made a conscious choice not to recruit more clients. First we need to increase tax service capacity (more clinics, more drop-off services and more volunteers). Hosting Tax Clinics (volunteers & space) The Region of Waterloo and Rockway Centre have the administrative capacity and space to offer more services, however lack access to volunteers. The University of Waterloo and Wilfrid Laurier University Accounting students were discussed as an option for volunteers. To receive a professional accounting designation, you must do 100 volunteer hours of tax preparation. The UW accounting association offers free clinics to the community and to students. The WLU provided clinics to students only. Both organizations are interested in broadening their scope and helping the community. Opportunities Waterloo Region and the Municipal Government of the Region of Waterloo will take the lead in connecting with the University of Waterloo and Wilfrid Laurier University Accounting Students. The ICAO would need to approve all clinics in order for student volunteer hours to be accepted. The Region currently does not work through the ICAO for its clinics. A reoccurring theme emerged regarding administrative pressure on organizations while running tax clinics (i.e. influx of phone calls, booking appointments and reminders). The idea of creating a centralized booking system was suggested. Serious concerns were raised regarding centralized booking and the suggestion let go. Drop-off Services With the possibility of connecting with university accounting students for volunteers, it seems we increase our offer of free tax services by providing drop-off services. Pros Eliminates the problem of noshow appointments Clients could drop off their taxes at various locations and at various times in the day. Cons Many clients appreciated the oneon-one interaction Some clients may not trust leaving their important documents Volunteers can file more efficiently therefore could file more taxes Drop-off services can operate year-round Eliminates need for day-care. Evaluation Report, June of 40