Investing in Savings at Tax Time: Insights for Funders Wednesday, October 22, :00 – 2:00 pm eastern The Webinar will Begin Shortly

Webinar Overview EITC Funders Network *  During presentations, audience will be on “listen only mode.”  We will take questions during the Q&A portion.  How to ask a question:  Use the “chat function” on your screen  Raise your hand by pressing *1 on your phone.  To lower your hand press #. Asset Funders Network *

Who We Are Our Members  More than 280 members  Members in every state in the union What We Do  Meetings  Webinars  eNewsletter  Website  Consultation Goals The goals of the EITC Funders Network include:  Increase communication among funders about EITC-related projects across the country;  Explore issues confronting the field;  Discuss ways to sustain and scale-up EITC work; and  Leverage funding for EITC-related projects Thematic Pillars  Outreach and Tax Preparation  Policy  Benefits Access  Financial Empowerment EITC Funders Network *

Growing Increasing the number of grantmakers and resources focused on financial security. Educating Building knowledge and serving as an information resource` to grantmakers and the asset-building field. To learn more, please visit assetfundersnetwork.org Elevating Highlighting promising practices, key issues, collaborations, and innovations in the field. Influencing Engaging policymakers and key stakeholders in the needs and benefits of expanding access to financial opportunities. AFN is a community of national, regional and community-based foundations and grantmakers who are strategic about using philanthropy to invest in economic opportunity and financial security for all Americans.

Webinar Overview I.Welcome  Ami Nagle, EITC Funders Network  Annika Little, Asset Funders Network II.Presentations  Tim Flacke, Executive Director of the D2D Fund  David Sieminski, Policy Analyst at the Consumer Financial Protection Bureau's Office of Financial Empowerment III.Q&A 5

Innovations in Tax Time Saving Presentation to the Asset Funders Network October 22, 2014 Timothy Flacke, Executive Director

©Doorways to Dreams Fund, 2014 Mission Strengthen the financial opportunity and security of low and moderate income consumers by innovating, incubating and stimulating new financial products and policies. – National nonprofit, headquartered in Boston, cofounded in 2000 by then Harvard Business School Professor Peter Tufano – Example innovations: Save to Win, Financial Entertainment, Rainy Day Reserve prepaid savings pocket, SavingsQuest gamified emergency savings, FinCapDev mobile app challenge, Save Your Refund tax-time saving promotion – Examples of supporters & collaborators: Doorways to Dreams (D2D) Fund

©Doorways to Dreams Fund, 2014 Tax Time Saving Ingredients Product Promotion Infrastructure Incentives

©Doorways to Dreams Fund, 2014 On-site offer Remind beforehand Liquid vs. long-term Transactional vs. relational Product

©Doorways to Dreams Fund, 2014 “Impulse” save Universal High-value Gift-able Low entry-point ($50) Safe / Secure Inflation-protected Tangible Unbanked Highlight: U.S. Savings Bonds

©Doorways to Dreams Fund, 2014 At “point of sale” Multiple touch-points Quality of ask Resources: Spend Some, Save Some; Making the Most of your Tax Refunds (CFED)Spend Some, Save Some; Making the Most of your Tax Refunds Build Savings at Tax Time: Guide to Split Refunds (D2D)Build Savings at Tax Time: Guide to Split Refunds Promotion

©Doorways to Dreams Fund, 2014 $35k prize purse 10 prizes / week Any Form 8888 filer Enter via web, SMS, mobile Verification for winners Motivate filers, preparers Highlight: SaveYourRefund

©Doorways to Dreams Fund, 2014 Financial Entertainment Train tax preparers Educate tax clients Understand options Practice refund choices play/refundrush.htmlhttp://financialentertainment.org/ play/refundrush.html Highlight: Refund Rush

©Doorways to Dreams Fund, 2014 Public / private IRS Form 8888 Pre-commitment Banked & unbanked Up to 3 destinations Infrastructure

©Doorways to Dreams Fund, 2014 Examples –Saver’s credit –SaveUSA –SaveYourRefund Two audiences Low cost Incentives

©Doorways to Dreams Fund, 2014 Focus on all key ingredients Target clients & preparers The “ask” is critical Try the unorthodox Key Take-aways

©Doorways to Dreams Fund, 2014 Timothy Flacke Executive Director D2D Fund, Inc Contact Information

Q&A  How to ask a question:  Use the “chat function” on your screen  Raise your hand by pressing *1 on your phone.  To lower your hand press #.

Note: 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. CFPB Tax Time Savings 2015 Tax time savings campaign This presentation is being made by a Consumer Financial Protection Bureau representative on behalf of the Bureau. It does not constitute legal interpretation, guidance or advice of the Consumer Financial Protection Bureau. Any opinions or views stated by the presenter are the presenter’s own and may not represent the Bureau’s views. 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.

Ready? Set. Save! 2015 What we know Many low income taxpayers receive substantial refunds from overpayments of taxes Many of those same taxpayers also receive additional refunds through the earned income tax credit Despite significant a lump sum of money most taxpayers do not take advantage of the opportunity to save because they: Have "pre-spent" their refund Do not have an account or savings vehicle Do not know how easy it is to save while filing their return Do not bring account information to the tax site 20

Ready? Set. Save! 2015 What we did in 2014 Fielded a 13 city tax time savings pilot in 2014 Developed training manuals for volunteer tax preparers and staff to help with savings promotion Provided training to 52 trainers who in turn provided training to approximately 1800 volunteers Developed and disseminated to pilot sites various consumer facing materials promoting savings including posters, stickers, pens, checklists Produced and distributed to pilot sites 3 videos promoting savings, splitting refunds and buying savings bonds Made visits to 4 pilot sites to observe RSS implementation 21

Ready? Set. Save! 2015 What happened in 2014 Received reports from 12 of 13 pilot sites which reported in aggregate that: 48,700 taxpayers had their returns prepared at RSS sites 39,000 of those taxpayers received refunds 1127 (3.1%) split their refunds and put a portion into a savings vehicle (1.9%) bought US savings bonds 2 Conducted post tax season conversations with 8 key informants including 4 representatives of 2014 pilot sites and 4 from VITA campaigns that did not participate in the pilot 1)2012 national average for all EITC filers splitting refund was 1.5% (IRS) 2)2012 national average for all EITC filers purchasing a savings bond was less than 1% (IRS) 22

Ready? Set. Save! 2015 What we learned in 2014 Consumers are more likely to follow through and save if engaged multiple times / you have to sell the idea Having dedicated “saving” staff to engage customers makes a significant difference in saving activity Incentives contribute to increased saving activity Providing information and prompts in advance “may” increase saving activity Sharing success stories and celebrating saving “may” be effective in encouraging saving Having a local brand on materials is important in increasing adoption and utilization of savings materials by tax campaigns 23

Ready? Set. Save! 2015 What we are planning for Expand availability of CFPB volunteer training and consumer education materials Publicized through provider networks Downloadable and available for order through GSA Training webinars publicized and available to all 2.National campaign to promote most beneficial options for preparing and filing taxes (Brand concept “Make the most of your tax refund”!) Key messages: Get your taxes filed for free at community VITA File for all the tax credits for which you are eligible Save a portion of your refund 24

H&R Block Research Pilot Purpose - Evaluate the effectiveness of practices to promote consumer saving behavior during tax time. Research Questions Can certain strategies encourage saving behavior? Is saving behavior associated with better outcomes for consumers? Research Goals Evaluate practices to promote saving during tax time; and Understand saving mechanisms that may improve long-term financial wellbeing 25

H&R Block Research Collaboration Research Strategies Marketing –incorporate information about the importance of saving and available saving options into informational materials and marketing On-site Information –Tax preparers will encourage their customers to save and will provide information on customers’ options to save when they go to H&R Block stores for tax preparation. Gamification –Test ways to encourage saving by making saving behavior more fun for consumers. The study will employ randomized controlled trials for the purpose of producing statistically significant results. 26

CFPB Ready? Set, Save! Resources 2015 For Consumers Checklist - to help taxpayers prepare for their tax appointment Worksheet - to help taxpayers decide how much to save Web banners - for posting on organization’s site Posters - encouraging taxpayers to consider saving For VITA Campaigns Training manual for trainers Training manual for volunteers Savings video for tax sites Webinars to help staff and volunteers learn more about how to effectively promote savings at tax time Materials available by Dec. 1. Order or down load at cfpb.gov. Stay tuned for further details! 27

Ready? Set. Save! 2015 Questions? Contact Dave Sieminski

Q&A  How to ask a question:  Use the “chat function” on your screen  Raise your hand by pressing *1 on your phone.  To lower your hand press #.

For more information: EITC Funders Network  Asset Funders Network 