Creating Assets, Savings and Hope

August 1, 2007

Author: Rita M. Eygabroad Garretson

What is C.A.S.H.?  Creating Assets, Savings and Hope (C.A.S.H.) is a community coalition of more than 30 organizations working together to improve the financial well-being of low-income working families in Monroe County.  C.A.S.H. was initiated by the United Way of Greater Rochester in 2002.  The success that C.A.S.H. has realized is directly related to the unique collaboration of diverse sectors of the community, including banks and credit unions, credit counseling agencies, local government, local foundations, academic institutions, and human service agencies.  Empire Justice Center assumed the operating responsibility for C.A.S.H. in June, 2007.  (Note: Many other EITC/Asset Building initiatives within NY State and around the country have also adopted the name C.A.S.H.)

C.A.S.H. helps working families get, keep and grow their money by: increasing incomes through greater use of the Earned Income Credit; minimizing unnecessary financial erosion by offering alternatives to predatory practices; and maximizing  financial assets through financial education, credit repair, matched savings, and home ownership.

Why C.A.S.H.?  The federal Earned Income Credit (EIC or EITC) was first introduced in the 1970’s and has grown in significance with changes in the tax code.  It is a refundable tax credit offered to low income working families to reward them for work and to help lift them out of poverty.  In 2006, a married couple with two or more children, who earned between $11,300 and $16,850 was eligible for a federal EIC of $4,536, and a NY State EIC of $1,361 – a total of $5,897 in refundable tax credits.

The IRS has estimated that 15% to 20% of the households who are eligible for  EIC do not claim it.  In Monroe County, this could mean as much as $20 million in unclaimed tax credits.

C.A.S.H. works to spread the word about EIC to potentially eligible households.  The coalition also helps these families claim all of their tax credits by offering free income tax preparation services and free electronic filing.  In addition to avoiding paid preparer fees averaging about $200 per return, these families avoid the temptation to purchase high cost refund anticipation loans offered by many paid preparers.

Beyond tax returns: Families who come to C.A.S.H. sites during tax season have the opportunity to connect with many other community resources and services designed to help them make the most of their money.  Prior to meeting with their volunteer tax preparer, each client reviews information regarding their financial interests and needs with a volunteer C.A.S.H. Advisor.  These volunteers are trained to provide clients with information on savings programs, affordable health care, financial education programs, food stamps, inexpensive refurbished computers, free credit  reports, job counseling services, and more.  C.A.S.H. advisors also help unbanked families open fee-free, no minimum deposit bank accounts while they are at C.A.S.H. sites – creating the opportunity to take advantage of direct deposit of their tax refund, and reducing their dependence on expensive alternative providers of financial services who may engage in predatory practices.

During the 2006/2007 tax  season, more than 500 volunteers, in 16 different locations, helped 12,218 households receive $17.4 million in federal and state tax refunds, of which $9.3 million was a result of the Earned Income Credit.

In addition to these services provided during tax season, the coalition offers the C.A.S.H. Coach Program. This program helps individuals and families develop or enhance their financial management skills.  Volunteer coaches are matched with individuals or families who are committed to improving their financial situations. Together, they work to   determine a financial goal to be reached, and the coach helps their client stay on track to achieve their goal.  The coach and the client meet one-on-one for 9-months to review progress and identify next steps.

C.A.S.H. Results to Date:  Since 2002, C.A.S.H. has operated free income tax preparation centers throughout the community – since that time, more than 27,000 families have received services at C.A.S.H. sites.  During the 2006/2007 tax season, more than 500 volunteers, in 16 different locations, helped 12,218 households receive $17.4 million in federal and state tax refunds, of which $9.3 million was a result of the EIC.  More than 1,000 clients took advantage of the opportunity to download their credit report for free while they were at a C.A.S.H. site; financial professionals were available to assist with review of the reports.  Approximately 300 bank accounts were opened for clients at C.A.S.H. sites.  Hundreds of referrals were made to the YWCA for assistance with food stamp eligibility screening and the application process, and hundreds more were referred to facilitated enrollers for assistance with applying for public health insurance programs.

The C.A.S.H. Coach program has graduated two groups of participants.  More than 30 families have completed the C.A.S.H. coach program.  Success stories include reducing credit card debt by thousands of dollars, surpassing savings goals, successfully balancing check books for several months in a row, and collaborating with coworkers to improve spending habits.

C.A.S.H. has been recognized nationally as a leader and best practice model for EITC initiatives.  The Brookings Institution reported that in 2005 (tax year 2004), Rochester ranked second among the 100 largest metro areas in central city market share of EITC returns prepared by volunteers (8.3%) and eighth in suburban market share (2.6%).

The work of the coalition is dependent upon the dedication of community volunteers who give of their time and talents to help working families in our community.  Volunteers can serve in a variety of roles – as a front desk manager and greeter, a C.A.S.H. advisor, a C.A.S.H. coach, or a tax preparer.  Bilingual volunteers are also needed – especially those who can speak Spanish, and those who are skilled in ASL.  If you are interested in volunteering with C.A.S.H., please contact Candice Lucas, (585) 295-5733, clucas@empirejustice.org.  If you have any other questions about C.A.S.H., please contact Rita Eygabroad, (585) 295-5732, reygabroad@empirejustice.org.