Connecting Your Clients to Savings: Promoting Tax Time Savings October 4, 2017 10-11:30 am PT/ 1-2:30 pm ET
Welc lcome Fr Fran Ros osebush Ba Baylo lor Director, Field Engagement Prosperity Now
Housekeeping This webinar is being recorded and will be Trouble dialing in? Just listen through your computer available online within one week. with speakers or headphones! 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@prosperitynow.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 • Create a watch party with your team to listen & learn together
Prosperity Now’s mis ission is to ensure everyone in our country has a clear path to financial stability, wealth and prosperity.
To connect , strengthen and inspire community tax programs so that they can … ✓ More effectively & efficiently deliver critical tax assistance ✓ Couple that assistance with other financial capability services ✓ Advocate for fairer tax policy
What’s in store for today? • Welcome from Taxpayer Opportunity Network • Update from the Tax Time Financial Capability Working Group • Sharing of the CFPB’s Promising Practices for Tax Time Savings • Release of the new Prosperity Now Tax Time Savings Toolkit • Q & A
Today’s Speakers Reb ebecca Th Thom ompson St Steve Ho Holt Project Director Consultant Taxpayer Opportunity Network Taxpayer Opportunity Network Prosperity Now Prosperity Now
Today’s Speakers St Stephanie ie La Landry Da Dave Siem Siemin inski Program Manager, Savings & Policy Analyst Financial Capability Office of Financial Empowerment Prosperity Now Consumer Financial Protection Bureau
Welcome fr from Taxpayer Opportunity Network Reb ebec ecca Thompson Project Director, Taxpayer Opportunity Network Prosperity Now
Poll Question Do you offer additional financial capability services at your tax sites? • Yes • No • Not applicable/unsure
Update from the Tax x Tim ime Fin inancia ial Capabilit ity Workin ing Group Steve Ho Holt lt Consultant Taxpayer Opportunity Network
Tax Time Financial Capability – 3 Essentials 1) Prioritize financial capability activities 2) Build financial capability culture 3) Invest in financial capability culture
Essential #1 Prioritize Financial Capability Activities Field as a whole can make determination along 2 axes: 1) Value of the financial capability activity to VITA taxpayers 2) Suitability of financial capability activity to tax time moment
Field-Wide Prioritization Matrix HIGH value to taxpayer HIGH value to taxpayer HIGH suitability to tax LOW suitability to tax time time LOW value to taxpayer LOW value to taxpayer LOW suitability to tax time HIGH suitability to tax time
Essential #1 Prioritize Financial Capability Activities Building off field-wide priorities, programs can assess & target locally along 2 additional axes: 1) Taxpayer interest 2) Site capability (which includes volunteer interest)
Local Prioritization Sub-Matrix HIGH taxpayer interest HIGH taxpayer interest LOW site HIGH site Capability capability LOW taxpayer interest LOW taxpayer interest LOW site HIGH site Capability capability
Essential #1 Prioritize Financial Capability Activities A good local process: 1) Assessing specific environment 2) Targeting how to increase taxpayer interest and/or site capability 3) Evaluating changes in environment over time
Essential #2 Build Financial Capability Culture Foundational assumptions: 1) All taxpayers are capable of participation 2) Taxpayers are the decision makers
Essential #2 Build Financial Capability Culture Change principles: 1) Value of financial capability activity must be salient to taxpayers 2) Value of financial capability activity must be salient to staff & volunteers 3) Culture change takes time
Essential #2 Build Financial Capability Culture Operational guidelines: 1) All functions at site relate to promoting financial capability 2) All program personnel have role in promoting financial capability 3) Fun matters
Essential #3 Invest in Financial Capability Culture Staffing: 1) Create/maintain dedicated financial capability staffing function 2) Involve site managers early & often
Essential #3 Invest in Financial Capability Culture Training: 1) Make financial capability salient for all staff & volunteers 2) Highlight respective roles everyone plays
Essential #3 Invest in Financial Capability Culture Communication: 1) Highlight financial capability opportunities to taxpayers in advance of tax season 2) Keep staff & volunteers apprised of financial capability successes 3) Reinforce financial capability themes after tax season
Essential #3 Invest in Financial Capability Culture Evaluation: 1) Commit to effort required to collect relevant data 2) Do not let data sit dormant but use to assess & change
Poll Question How do you encourage taxpayers to save a portion of their refund? (Check all that apply.) • Split refunds • Dedicated staff or volunteer position • SaveYourRefund Promotion • Other Incentives (share in the comment box!) •We don’t actively encourage saving
CFPB Tax Tim ime Savings In Init itia iative David Sieminski Policy Analyst Office of Financial Empowerment Consumer Financial Protection Bureau david.sieminski@cfpb.gov
Disclaimer ▪ The CFPB has prepared these materials as a resource for tax preparers. This material is provided for educational and information purposes only. It is not a replacement for the guidance or advice of an accountant, certified financial advisor, or otherwise qualified professional. ▪ This document was used in support of a live discussion. As such, it does not necessarily express the entirety of that discussion nor the relative emphasis of topics therein. ▪ This presentation includes references to third-party resources or content that consumers may find helpful. The inclusion of references to third-party sites does not necessarily reflect the Bureau’s endorsement of the third -party, the views expressed on by the third party, or products or services offered by that party. The Bureau has not vetted these third-parties, their content, or any products or services they may offer. There may be other possible entities or resources that are not listed that may also serve consumer needs.
CFPB Tax Time Savings Vision Savings outreach and education to consumers at tax time should be available across all service and product platforms - both commercial and VITA.
2017 CFPB Tax Time Savings Initiative Results 58 Programs participated / 45 programs provided results ▪ 255,782 consumers were provided with free tax preparation services ▪ 187,941 consumers had their taxes prepared at a site using CFPB information; ▪ 140,308 consumers received a refund; Of those; 54,857 claimed the Earned Income Tax Credit 93,525 used direct deposit to receive their refund 3,179 (2%) used Form 8888 to split their refund 545 (.4%) purchased U.S. Series I Savings Bonds 44 deposited some of their refund into a myRA account.
Support Activities in 2017 ▪ One-on-one technical assistance calls with participating sites ▪ Group discussions with sites around specific topics ▪ Site visits with four participating organizations ▪ Online survey of site leads (45 responses) ▪ Four focus groups with site leads ▪ Online survey and focus groups for staff and volunteers ▪ End of tax season convening
Implementation of CFPB Promising Practices
Promising practices to encourage saving Helping Tax Filers Choose to Save 1. Communicate with consumers about saving before they come to the tax site 2. Offer saving choices more than once at the tax site 3. Provide multiple product choices for saving 4. Use “anchoring” and prompts to help consumers focus on a savings goal 5. Don’t overwhelm consumers by offering too many different types of services 6. Provide incentives, including non-financial rewards, to encourage saving 7. Make saving fun and exciting Training and Motivating Staff and Volunteers to Help Tax Filers to Save 8. Build commitment among staff and volunteers to encourage saving 9. Make sure tax preparers know how to help consumers save while filing 10. Dedicate staff or volunteers to encourage saving
8. Build commitment among staff and volunteers to encourage saving Benefits ▪ Key personnel have a common sense of mission beyond tax preparation ▪ Team efforts are generally more efficient and productive ▪ Coordinated approach helps to smooth client flow at the tax site 2017 Cohort approaches ▪ Recruit staff and volunteers already committed to providing financial education or other financial empowerment strategies ▪ Provide added education and training to team on challenges of asset poverty and benefits of tax time saving ▪ Provide talking points that help team feel comfortable about having saving conversations with clients
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