Building a Coalition from Scratch : the EITC Taskforce of Tucson and Southern Arizona

September 2005

When Patrick Jordan started with the United Way of Tucson and Southern Arizona in October 2003, one of his first projects was to bolster the capacity of VITA programs to assist more low-income taxpayers to receive the Earned Income Tax Credit.

The United Way of Tucson and Southern Arizona has moved beyond merely fundraising and grantmaking to a community development model; now it devises specific strategies to effect goals set by its Strengthening Families Impact Council. One of those goals is to increase the self-sufficiency of low-and moderate-income people, and it appeared to Patrick that there was $10-20 million in Earned Income Tax Credits not being claimed in Pima County , even though a small VITA program operated there.

Patrick, the Director of Community Development, Strengthening Families, first put his energy into building a coalition. He convened a meeting of various community organizations, government bodies, and church groups to harness the power of those agencies to work together. “Don’t underestimate the power of personal connections,” he says. As well as sending out email and flyers, Patrick made hundreds of phone calls to bring 30-40 people to the first meeting. Then they were off and running.

The Volunteer Center, the IRS, the City of Tucson, Pima County, Catholic Community Services, and the Children’s Action Alliance were involved in the EITC Taskforce of Tucson and Southern Arizona from the start. The United Way Board of Directors approved a small grant of $5,000 to get them started, which enabled the EITC Taskforce to lobby the Tucson City Council and Pima County for matching contributions—and then they had $15,000.

Realizing that United Way did not have staff capacity to manage a free tax preparation program, the Taskforce hired a professional tax preparer.

Their first year was one of learning how to operate free tax preparation sites and how to meet the demands of their clients with tools (such as TaxWise) that were available. Even so, they tripled the return rate of the previous small VITA program, going from two sites preparing 300 returns to six sites completing 1,100 returns.

A little more confident the second year, and with funding from the global bank HSBC for financial literacy work, they added a pilot program for asset building. They could see the connection between helping taxpayers accumulate some assets and using those assets well.

Before it could add this component, however, the EITC Taskforce had to get buy-in from several groups. Veteran VITA preparers were not always keen on change from the way they had always done things! So the EITC Taskforce held trainings specifically on asset building with volunteer site managers, tax preparers, and lead volunteers. In addition, it helped Arizona Saves (part of a national campaign to encourage individuals and families to save and build wealth) boost its volunteer pool so it would have enough Wealth Coaches for one-on-one counseling at EITC sites.

During the tax season, Arizona Saves Wealth Coaches were stationed at selected VITA sites. Through one-on-one counseling, they attempted to bridge the gap between unbanked taxpayers and mainstream financial institutions which were willing to offer “no fee, no minimum” savings accounts. Out of 100 who were coached in the first year of this pilot, about 35 signed up for accounts, a very promising outcome.

Patrick believes that crucial to building capacity for EITC programs is to sell the concept that community development dollars are leaving the community when people aren’t claiming EITC or other credits. Once people realize this, they want to be part of the group that succeeds in returning this money.

Now planning for its third year, the EITC Taskforce is focused on getting enough volunteers to meet the anticipated demand. After doubling its output to 2,400 returns in their second year, it expects the program to double again, and aims to double the number of volunteers and sites. At the same time, it is scaling back its outreach and marketing to avoid long lines of clients.

One of the useful tools it developed for leading a coalition is a Memorandum of Understanding (MOU). This resulted from a meeting between Patrick and Ana Marie Argilagos of the Annie E. Casey Foundation at the National Community Tax Coalition conference last year. Ana Marie was interested in the uptake of the EITC along the Southwestern border. At a meeting arranged in Tucson for groups which worked along the border, she asked, “How do we get the EITC to the people who need it most? Who are the hardest to reach?”

Then the Annie E. Casey Foundation sent two EITC Taskforce staff to El Paso to share experiences on building coalitions and recruiting volunteers (see the report in April Tax Buzz). The coalition in El Paso , they learned, had created an MOU to more clearly define the various partners’ goals and responsibilities. The EITC Taskforce has adapted this MOU for its use in Tucson , and all Taskforce members will fill it out in the f all . This document will help clarify what each entity want s to accomplish and what resources it will bring to the initiative ( a copy of the MOU is in the Building Coalitions section of the Coalition website).

The EITC Taskforce is now changing from being implementer of a program to decision-makers: it sets policy for whole group, and direction for the United Way of Tucson and Southern Arizona . It approved the MOU and the addition of asset building at tax preparation sites. It will issue the EFINs for next tax year, deciding which new entities in which locations are incorporated into the program.

It is aware that the lowest income people in their area may be Spanish speakers who don’t file taxes at all, some of whom will be eligible for the EITC. Toward the end of the last tax season it had chance to extend the collaborative by bringing in new partners, such as the Tohono O'Odham Nation, which increased capacity in southern Arizona.

With no small ambition, it has submitted an application for funding to establish a Low-Income Taxpayer Clinic, with support from its local Congressman, Rep. Raúl M. Grijalva. To build capacity for rural services, it has also made a grant application to the U.S. Department of Health and Human Services. Through its relationship with Arizona Saves, it will deliver more asset-building opportunities. Working with funding from HSBC and a private donor, it will coordinate delivery of a year-round financial literacy program.

The program has benefited richly from the energy and commitment of young volunteers. Erin Markley, its first AmeriCorps* VISTA volunteer, is now employed full-time with funding from private donations. A new VISTA started in July. The City of Tucson ’s IDA program is administered by another VISTA . United Way is currently providing office space to a VISTA leader working to bolster VISTA numbers in southern Arizona . Now the EITC Taskforce has applied to Americorps*NCCC, aiming to get 2 teams of volunteers for next tax season.

Erin Markley, former Americorps*NCCC volunteer

In two years, Patrick has seen a 700 percent increase in tax returns completed. He is enthusiastically sharing his experience of strategies for VITA program growth and asset-building opportunities through effective collaborations.

Written by Don Wedd