NORTH SIDE COMMUNITY FEDERAL CREDIT UNION VITA PROGRAM

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NORTH SIDE COMMUNITY FEDERAL CREDIT UNION
VITA PROGRAM
GOOD FOR THE CREDIT UNION, GOOD FOR OUR MEMBERS,
AND GOOD FOR THE COMMUNITY
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North Side Community Federal Credit Union Serves
Chicago Communities

• 33 year-old community development credit union
• Low-income designated by NCUA
• Certified as a Community Development Financial
  Institution (CDFI) by the U.S. Treasury
• 8 million in total assets and 3,000 members
• Partners with 42 employers with over 7,000
  employees
• History of serving people who are not using
  mainstream financial institutions
• History of innovative products Payday
  Alternative Loan, New Americans Loan Program

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The Center for Economic Progress Serves Working
Families

• Helping working families help themselves through
  free tax preparation and the Earned Income Tax
  Credit
• 28,000 families served through free tax return
  preparation at 33 tax sites in 2006 by the
  Centers Tax Counseling Project
• 39.1 million in tax refunds were returned to
  Illinois families in 2006
• Recruited and trained over 1,000 volunteers
• Financial education access to bank credit
  union accounts
• 1500 individuals participated in financial
  literacy classes in 2005-6
• 2,650 low cost depository accounts opened by
  partner financial institutions in 2002-5
• Providing technical assistance and advocacy
  through the National Community Tax Coalition
• Searching for innovative ways to better serve
  clients

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The Opportunity New Members, Share Growth, More
Dollars Recycling in the Community
Data from 2002 tax returns by zip code (latest
available), analyzed by The Woodstock Institute
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EITC a Work Support often Left on the Table
Up to 25 of your EITC-eligible workers may not
be claiming it

• - Avoiding the cost of paid preparers and Refund
  Anticipation Loans saves another 260 1-3 of
  total income. Assumes all filers have SSNs,
  all natural children. Tax year 2003.

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Why Employers? - Creating a Partnership to
Provide a Benefit Package

• Reasons for working with employers and financial
  institutions
• Employers provide key financial transactions
• Payroll, direct deposit, tax withholding (W-4)
  and reporting (W-2, 1099) , fringe benefits,
  retirement and cafeteria plans
• Employers provide regular opportunities to reach
  working families
• New employee orientations, employee benefit days
  etc
• Channels of communication e-mail, paycheck
  stuffers etc
• Credit Unions already invest in employer
  relationships
• Bank-at-work programs, payroll, other commercial
  business
• Criteria for choosing the four employers
• High concentration of low income workers
• Close proximity to Credit Union
• Strong existing relationships with Credit Union
• History of providing benefits to low income
  workers

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Advantages to Employer of Partnering in Financial
Empowerment

• Differentiate yourself as an employer
• Employers are finding that financial education
  may be an effective tool for attracting and
  retaining valued workers1
• Leading employers are providing financial
  education and tax preparation assistance GE,
  UPS, Burger King, CVS, TJX Companies, etc
• Employers who participate are recognized as
  leaders locally and nationally
• Improve the retention and productivity of your
  workforce
• Reduce turnover through a higher realized hourly
  rate
• Work time lost to unexpected personal financial
  issues is costly
• Financially stressed employees may spend up to 20
  hours per month dealing with money problems2
• Satisfied workers are more productive workers
• Reduce transaction costs by encouraging direct
  deposit

1 Personal Finance and the Rush to Competence
Fannie Mae Foundation 2 Employee Benefit
Plan Review March 2001
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Benefits to Employees of a Partnership in
Financial Empowerment
Up to 5 of the wages employers paid to some
workers was spent at Currency Exchanges, Payday
Loan stores, and other fringe financial service
providers

• Receive free tax preparation
• Paid preparers charge 110 for a service that a
  trained volunteer can provide in one hour
• Refund Anticipation Loans (RALs) cost 150 to
  advance a refund that could be directly deposited
  to a credit union account in two weeks through
  the Tax Counseling Project
• 3.4 million dollars would have been spent on
  paid preparers and RALs by last years program
  participants alone
• Many working families might not file otherwise
  forfeiting money they have earned
• Participate in financial education
• Your employees will improve their financial
  budgeting skills
• Your employees will learn how to repair their
  credit and maintain good credit - expanding
  financial options and improving quality of life
  for families and individuals
• Your employees will learn the benefits of saving
  and participating in a 401(k)/403(b) plan, if
  such plans are available to them
• Benefit from Financial Services
• Your employees will be able to use mainstream
  financial services to manage their money
• Your employees will keep more of their paycheck

660 annually (110 for tax preparation, 150
RAL, 400 for Currency Exchanges, Payday Loans
and other financial service providers) for an
individual earning 6.50 per hour
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• For more information
• Ed Jacob
• North Side Community Federal Credit Union
• nosidefcu_at_aol.com
• [phone] x 227
• National Community Tax Coalition
• www.tax-coalition.org
• [phone]