Los Angeles County. The Evolution of a Coalition. The Greater Los Angeles Earned Income Tax Credit (EITC) Campaign Partnership

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Abraham Wilkerson
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1 Los Angeles County The Evolution of a Coalition The Greater Los Angeles Earned Income Tax Credit (EITC) Campaign Partnership Victor Ramirez, Campaign Chair Citi Community Development 1

2 EITC Campaign- How It Began 1997 UCLA Feasibility Study Re: The Living Wage Significant Issues Raised: Financial needs of low-income workers & their families How to increase wages at the least cost Only 48% of those eligible in Los Angeles County receive the federal wage supplement offered through EITC Resulting Partnership Inter-Government/Agencies Task Force Co-Sponsorship (LA County, City of LA, IRS) Resources and Staff Person EITC Partnership The EITC Campaign Partnership was created in 1998, a unique collaborative between various government agencies, non-profits, community and faith-based organizations with the goal of raising awareness about the EITC and increasing the participation rate among Los Angeles County residents. Other partners provide support, resources as well as in-kind contributions such as marketing materials, printing costs, and advertising venues. 2

LA, IRS) Resources and Staff Person EITC Partnership The EITC Campaign Partnership was created in 1998, a unique collaborative between various government agencies, non-profits, community and

3 Innovative National Model The Partnership received national recognition as a model program, and various cities nationwide have adopted many of the outreach and program strategies developed by the Partnership. Through the innovative partnership and collaborative marketing, the campaign has generated millions of additional dollars into the Los Angeles economy over their twelve-year existence. Community Outreach Strategies Regional Community Information Breakfasts for EITC leadership champions Call to Action Free tax help referrals to VITA sites Workforce Development Forums Workplaces - Employers, HR Managers, meetings, etc. Churches/Faith-based organizations Schools & other education centers Community centers Housing Authorities Community-based collaboratives 3

Through the innovative partnership and collaborative marketing, the campaign has generated millions of additional dollars into the Los Angeles economy over their twelve-year existence.

4 Media Outreach The partnership embarks on an intensive marketing campaign from January until April of each year: 1. Press conference; 2. Television and radio campaign 3. Print advertising in local papers 4. Buscards in public transportation. A highly effective press conference media event is held in January of every year to kick-off the campaign with the support and presence of elected officials from the City and County, as well as representatives from the various partnerships. Marketing Broadcast Media Radio Coverage and Call-in shows KTWV KKBG KTNQ Chinese Radio KKBT KCRW KKHJ KLVE KFWB KBUE KJLH KWKW High Desert Spanish Radio TV Coverage Channel 9 Channel 22 Korean TV Channel 11 Channel 35 Channel 34 Channel 52 4

A highly effective press conference media event is held in January of every year to kick-off the campaign with the support and presence of elected officials from the City and

5 Marketing Print Media News releases & alerts La Opinión Downtown News Nueva Vida Pennysaver L.A. Times County Digest Chinese & Korean newspapers Good News L.A. Orange County Register Voz Latina Other Community newspapers Trade & Community Newsletters Mobile Tax Van Project with One Economy 5

Times County Digest Chinese & Korean newspapers Good News L.A.

6 Technology The EITC Campaign Partnership contracted with Info Line (211) to handle the calls generated by the distribution of EITC material in various languages Created a user-friendly website to promote EITC, VITA, and other assets building programs. For more information, please visit Leadership Sharing The EITC Campaign Partnership has shared leadership roles with key partners by having various organizations host the campaign every few years. The following organizations have managed and hosted the campaign in the past: City of Los Angeles, Community Development Department Los Angeles County Children s Planning Council (CPC) United Way of Greater Los Angeles (aligned with the organization s Family Economic Stability initiative) Chaired by Citibank 6

org Leadership Sharing The EITC Campaign Partnership has shared leadership roles with key partners by having various organizations host the campaign every few years.

7 2010 LA County Production (As of 4/26/10) # of Sites # of Paper # of E-file Total Returns # of CTC # of EITC AARP ,839 18, ,563 VITA ,731 17,423 4,282 6,882 I-CAN 8* n/a 3,483 3, ,028 Beehive 0* Total 162 1,492 38,372 39,864 5,466 10,570 Direct Deposit 5,025 7,261 n/a ,461 CTC Amount $1,127,211 $5,336,019 $163,992 $22,382 $6,649,604 EITC Amount Total Refund Amount $2,727,640 $13,226,780 $11,457,346 $25,917,435 $1,678,540 $4,693,703 $115,363 $362,783 $15,978,889 $44,200, Results Compared to Prior Years Number of Tax Returns Prepared at Free Tax Sites in L.A. County 41,000 39,000 37,000 35,000 37,464 39,540 39,864 33,000 31,000 30,203 29,000 27,000 25, * 2008* 2009* Tax Year 7

$22,382 $6,649,604 EITC Amount Total Refund Amount $2,727,640 $13,226,780 $11,457,346 $25,917,435 $1,678,540 $4,693,703 $115,363 $362,783 $15,978,889 $44,200,701 2010 Results Compared to

8 2010 Results Compared to Prior Years Total Refund Amounts Claimed at Free Tax Sites in L.A. County Millions of Dollars $50 $40 $30 $20 $10 $0 $44.20 $36.87 $25.43 $ * 2008* 2009* Tax Year The Work Still Continues Organizations with Service Until October 15 th, Chinatown Service Center -I-CAN website -Pacoima FamilySource Center -MAOF -Office of Congresswoman Judy Chu -Office of State Controller John Chiang -Villa Parke Community Center 8

80 2006 2007* 2008* 2009* Tax Year The Work Still Continues Organizations with Service Until October 15 th, 2010

9 Future Efforts Integration of Asset Building Strategies and Tools Get Paid to Save Campaign: Ramp Up Savings Accounts Debit / Pre-paid Cards RAL Alternative Loans Asset Building Specialist (ABS) Certification Los Angeles County Department of Public Social Services (DPSS) Volunteer Income Tax Assistance (VITA) Program 9

Loans Asset Building Specialist (ABS) Certification Los Angeles County

10 What is VITA? The VITA program is sponsored and administered by the Internal Revenue Service (IRS). Free tax service for low- to moderateincome families and individuals. Income limit for VITA sites is about 49K Background DPSS piloted the Program in 2005 and implemented Countywide in 2006 in ten sites. DPSS became a VITA provider to determine the benefits and impact of providing income tax assistance preparation to eligible working families with children. Due to the demand for VITA services and the obvious benefits to our participants, DPSS continues to participate to date. 10

Income limit for VITA sites is about 49K Background DPSS piloted the Program in 2005 and implemented Countywide in 2006 in ten sites.

11 VITA Benefits Reliable, professional tax assistance at no cost. Tax preparation cost savings, up to $300 per return. Educates participants about the benefits of the tax credits such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Increase awareness and utilization of EITC and CTC. Eliminate the practice of utilizing high-fee services such as Rapid Anticipation Loans (RALs). Access to Financial education, asset building opportunities, and no-cost banking. DPSS VITA Program Exclusively for DPSS participants and by invitation only. VITA flyer is sent to CalWORKs, Medi-Cal and Food Stamp families informing them about VITA and how to make an appointment. Services are provided by DPSS staff two evenings per week and Saturdays. DPSS staff are trained and certified by the Internal Revenue Service (IRS). 11

Eliminate the practice of utilizing high-fee services such as Rapid Anticipation Loans (RALs). Access to Financial education, asset building opportunities, and no-cost banking.

12 DPSS VITA 2010 Tax Season Results 3,200 families were serviced by DPSS staff. 3,072 tax returns were actually processed by the IRS. Approximately $8.2 million claimed in total refunds. $4.9 million attributed to EITC. $1.9 million attributed to CTC. $2,400 average refund Outreach Efforts Target population is approximately 500,000 families. Invitational flyer is sent along with various status reports between December and March to minimize mailing costs. Presentations at community and staff meetings. VITA flyer to all DPSS staff for distribution. 12

2010 Outreach Efforts Target population is approximately 500,000 families.

13 2010 Outreach Efforts (Cont d) VITA & EITC posters in over 50 publiccontact lobbies. On-hold message on Customer Service Center hotlines. Continuous bulletins to remind staff to promote VITA and EITC. VITA Program Challenges How do you fund this program? What level of staff to utilize? What type of office and location of the site? How do we promote the program? How to schedule appointment for VITA services? How to address training needs? 13

Continuous E-mail bulletins to remind staff to promote VITA and EITC.

14 VITA Program Replication Advice Start small!! Pilot the program to a small targeted population in a strategic location. Make sure training is scheduled well in advance. The mailing to your target population must be timely to coincide with the start of tax season and according to the capacity to handle the workload. Become familiar with the software that will be used to electronically file (efile). Managing During Change We always put lessons learned from the previous year in practice during the planning stages for every upcoming tax season before the VITA program begins. Qualified employees who volunteer for the VITA Program are screened for necessary aptitude for the project. Be willing to be flexible and innovative! 14

Become familiar with the software that will be used to electronically file (efile).

15 Los Angeles Countywide VITA Program Over 100 VITA sites throughout Los Angeles County. Some are open year-round. For more information or referral please call 211 or visit Los Angeles County Thank you for your time and attention. Questions? 15

For more information or referral please call 211 or visit

EITC Campaigns in Cities Across the Nation

CITY PROFILES EITC Campaigns in Cities Across the Nation REPORT FOR THE ANNIE E. CASEY FOUNDATION By Megan Volger (USCM Intern) Earned Income Tax Credit The Earned Income Tax Credit (EITC) is a tax credit