Leveraging the Tax Moment to Build Financial Capability June 9, 2016 2-3:30pm ET; 11am-12:30pm PT
Housekeeping ¢ This webinar is being recorded and Trouble dialing in? will be available online within one Just listen through your computer with speakers or headphones! week. ¢ All webinar attendees are muted to ensure sound quality. ¢ Ask a question any time by typing the question into the text box of the GoToWebinar Control Panel. ¢ If you experience any technical issues, email gotomeeting@cfed.org.
Keys to Success on Today’s Webinar • Join from a quiet space • Grab a coffee or snack and settle in • Engage! Send us your questions and comments as you listen • Think about applying this content to your work throughout the webinar
Tweet at us! @AandONetwork #FinCapWorks
Welcome Fran Rosebush Deputy Director, Field Engagement CFED
Who We Are Our mission at CFED is to make it possible for millions of people to achieve financial security and contribute to an opportunity economy. www.cfed.org @CFED /CFEDNews cfed.org/blog/inclusiveeconomy
How do we do it We push to expand innovative practical solutions that empower low- and moderate-income people to build wealth. We drive policy change at all levels of government. We support the efforts of community leaders across the country to advance economic opportunity for all. www.cfed.org @CFED /CFEDNews cfed.org/blog/inclusiveeconomy
Taxpayer Opportunity Network Members… • Participate in learning and advocacy opportunities • Learn about the latest developments in the field • Access valuable resources for volunteers, program managers and site coordinators • Get discounts to Taxpayer Opportunity Network convenings T o join or learn more, go to: cfed.org/programs/taxpayer_opportunity_network
Leveraging the Tax Moment Service Integration = Intentionally bringing services together to capitalize on key moments and better help individuals achieve their goals Other Program Financial Services Capability (e.g., workforce, Services housing, education, community health)
Many different types of services are being integrated into the tax moment • Savings: • Financial Coaching & Counseling • Account opening • Financial Education • Incentivized/Matched Savings • myRA • Workshops • Credit: • Educational materials • Counseling/ Report Screening • Benefits Access • Credit Repair/ Building • Federal & State Benefits Screening & Enrollment • Financial Access: • ACA Navigation & Enrollment • ChexSystems Report Screening • Assistance with Balances Due • Prepaid Debit Card • e.g. IRS Withholding Calculator • FAFSA Assistance
Many different pieces of this work to consider at tax sites Capturing data Aligning Understanding Marketing & to evaluate organizational taxpayer needs Recruiting & messaging at Designing client services and mindset and & selecting training the tax site and flow at the tax demonstrate clarifying financial volunteers & throughout the site impact mission and capability staff year goals services Assessing internal and external resources to support this work
What’s in store for today? • Welcome from our Co-Sponsors § JPMorgan Chase § EITC Funders Network • Exploring Research: Large scale studies and findings § Center for Social Development § Consumer Financial Protection Bureau • Sharing lessons from the field: Practitioner Perspectives § Center for Economic Progress § University of Missouri Extension § Boston Tax Help Coalition • Connecting to additional resources and next steps
Welcome from Co-Sponsor: JPMorgan Chase Colleen Briggs Executive Director Office of Corporate Responsibility and Global Philanthropy JPMorgan Chase & Co.
Importance of Promoting Financial Health OUR COMMITMENT Across the U.S. and around the world, too many people lack the tools and resources to manage their daily financial lives, weather unexpected emergencies, or plan for the future. They face daunting financial challenges, including: Difficulty saving for Low credit score or limited Significant monthly volatility Lack of access to products emergency and long-term credit history, impeding asset and services designed to financial needs and building address their needs managing unexpected risks n Instead, they rely on costly non-bank financial services, such as payday loans or check cashing outlets, resulting in billions spent in fees and interest each year. These services are riskier and often more expensive. n The impact goes beyond households. Financial health is a key element of inclusive economic opportunity and growth . Research shows that financial inclusion helps individuals start and expand businesses, invest in education, better manage risks and weather unexpected emergencies. It also boosts productive investment and consumption, helps reduce poverty and inequality, and catalyzes inclusive economic growth.
Need for Financial Capability Strategies OUR COMMITMENT Traditional approaches assume financial illiteracy is the root cause of financial insecurity. Research shows that basic Financial literacy efforts financial literacy education must evolve and combine These approaches focus on does not improve providing information consumer decision-making timely information with about predatory lending or result in innovative tools that turn practices and the benefits of long-term behavior knowledge into action. conventional banking. change . 1 New strategies must encourage financial capability, rather than financial literacy alone. These include: Time the delivery of Pair relevant, Leverage Incorporate human- products and engaging information Employ choice technologies to centered design. services to key with products and architecture. increase reach and financial moments. services. improve efficiencies. 1 Fernandes, Daniel, John G. Lynch, & Richerd G. Netemyer, 2014, “Financial Literacy, Financial Education and Downstream Financial Behaviors.” Management Science. Sherraden, Margaret S. 2010. “Financial capability: What Is It, And How Can It Be Created.” University of Missouri–St. Louis: Center for Social Development.
What big data say about moments to save: Tax refunds Sources of volatility in aggregate per capita monthly income
Almost 80% of people receive a tax refund, and they are larger in magnitude than the shocks from employment transitions Frequency and magnitude of impact of tax-related transactions compared to employment outcomes
Tax time as an opportunity to improve financial health n Tax time allows us to meet consumers where they are and provide products and services relevant to their financial lives. Not only do individuals receive a large lump sum of income, but they are also already thinking about their finances. n In addition to increasing awareness and maximizing tax refunds, free tax preparation services offer a great entry for savings products and financial coaching to improve their financial health beyond tax time. n Many nonprofit partners are still forced to do more with fewer resources. There’s an opportunity to understanding how to use technology and behavioral insights to increase reach, maximize impact and create efficiencies.
Welcome from Co-Sponsor: EITC Funders Network Ami Nagle Coordinator EITC Funders Network
Who We Are Goals Our Members The goals of the EITC Funders Network include: ¤ Almost 300 members Increase communication among funders about ¨ ¤ Community foundations, EITC-related projects across the country; family foundations, public Explore issues confronting the field; ¨ charities, corporate Discuss ways to sustain and scale-up EITC work; ¨ philanthropy and Leverage funding for EITC-related projects What We Do ¨ Thematic Pillars ¤ Meetings Outreach and Tax Preparation ¤ Webinars ¨ Policy ¤ eNewsletter ¨ Benefits Access ¨ ¤ Website Financial Empowerment ¨ ¤ Consultation EITC Funders Network * www.eitcfunders.org
Available Resources: ¨ On financial coaching (with a ¨ On financial coaching (metrics funders' lens): and evaluation): ¤ Asset Funders Network, Financial ¤ Asset Funders Network Coaching: An Asset Building Webinar: Financial Coaching – Strategy. Defines financial Strategies and Outcomes for coaching in relationship to Grantmakers. Webinar focusing financial counseling or education on the financial capability scale, and elaborates on the a standardized set of metrics relationship with building that organizations and funders financial capability. Also can use to measure the impact provides examples of coaching financial coaching efforts. programs – including those at ¤ Urban Institute, An Evaluation of VITA sites – and explores issues the Impacts and Implementation of measuring success and the Approaches of Financial role of funders. Coaching Programs EITC Funders Network * www.eitcfunders.org
Available Resources ¨ On the links between the EITC, VITA and FAFSA: ¤ CBPP’s Get it Back Webinar: Navigating FAFSA and the EITC: How to Connect Families to Help. Training on ways to connect tax credit outreach with FAFSA assistance with an overview of the ways EITC, VITA and FAFSA are connected. EITC Funders Network * www.eitcfunders.org
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