1. www.RuralDynamics.org 1.877.275.2227 Schedule C Tax Preparation as Asset Building Karen Heisler Rural Dynamics, Inc. Great Falls, Montana

2. www.RuralDynamics.org 1.877.275.2227 Rural Dynamics’ SETI Project Introduced in the 2009 Tax Season through the statewide Tax Help Montana program. Focused on helping remote rural and Native self- employed filers access no- cost tax preparation services and useful wrap-around services in their communities.

3. www.RuralDynamics.org 1.877.275.2227 Rural Dynamics’ SETI Project During the 2010 tax season, the Tax Help Montana coalition filed over 6,000 tax returns statewide. –Over 320 Schedule C or Schedule C-EZ returns –154 of these filers received an EITC –Some Native Communities had 5 – 10% of filers needing this service

4. www.RuralDynamics.org 1.877.275.2227 Why does SETI matter in Montana?

5. www.RuralDynamics.org 1.877.275.2227 Montana’s Tribal Communities Montana is home to 7 federally recognized Tribal Reservations. –Just over 6 percent of Montana’s total population is American Indian--around 60,000. –Reservation communities are, overall, remote and rural, often lacking general services.

6. www.RuralDynamics.org 1.877.275.2227 Great Distances—Low Population At 147,000 square miles, Montana is the fourth largest state in the Union. With fewer than 1 million people, Montana is the 48 th least densely populated state. –46 of Montana’s 56 counties are considered “frontier” with fewer than 6 people per square mile. Many counties have 2 or fewer people per square mile.

7. www.RuralDynamics.org 1.877.275.2227 What does that Mean? In real terms: –Driving across Montana is the same distance as driving from Washington DC to Chicago Ill. In Montana, there are : –1.4 Elk, –3.3 Deer, –896 Fish, and –6 People Per square mile.

8. www.RuralDynamics.org 1.877.275.2227 According to CFED’s 2009-2010 Assets and Opportunity Scorecard Montana leads the nation in providing an economic incubator for entrepreneurs ranking: –1 st in small business ownership rates –1 st in microenterprise ownership rates –3 rd in women’s business ownership rates

9. www.RuralDynamics.org 1.877.275.2227 Why SETI is needed in Montana Traditionally underserved and historically offered few options with regards to financial education, tax preparation, and business planning and development, remote rural and Native communities are lagging behind the rest of the state in terms of small business growth and development in Montana.

10. www.RuralDynamics.org 1.877.275.2227 Why SETI is needed in Montana CFED found Montana’s Indianpreneurs did not share in the state’s entrepreneurial vitality, ranking –45 th in American Indian business ownership rate. It is important to keep in mind, the Native population in Montana is 6x the national average.

11. www.RuralDynamics.org 1.877.275.2227 Rural Dynamics’s SETI Project and Tax Help Montana During the 2010 tax season Tax Help Montana operated 38 full-time tax sites and over 25 tax clinics state-wide. RDI offered specialized training to interested partners and volunteers covering Schedule C and Schedule C-EZ tax preparation. On-site technical assistance offered throughout the tax season to Tax Help Montana partners.

12. www.RuralDynamics.org 1.877.275.2227 Tax Help Montana’s 2010 Coverage

13. www.RuralDynamics.org 1.877.275.2227 ABC’s of Rural Dynamics’ SETI Project Provided no-cost tax preparation for small businesses with business income up to $50,000. –Returns were prepared by volunteer preparers who received additional training. All self-employed returns were quality reviewed by a staff member with a significant business tax preparation and financial background.

14. www.RuralDynamics.org 1.877.275.2227 ABC’s of Rural Dynamics’ SETI Project Specifically targeted self-employed filers in Reservation communities. Linked SETI clients with additional resources available within, or nearby, their community. Additional follow-up by Rural Dynamics staff or site coordinators in the off season is scheduled

15. www.RuralDynamics.org 1.877.275.2227 Rural Dynamics’ SETI Project Capitalized on existing partnerships: –Montana Indian Business Alliance, the Montana Credit Unions for Community Development, Department of Revenue, and Tribal Colleges and Organizations. Developed new relationships: –Made in Montana Marketplace, local Chambers of Commerce, SBDC, MT Dept. of Labor and Industry, Dept. of Commerce, and various associations.

16. www.RuralDynamics.org 1.877.275.2227 SETI and Future Development Utilizing SETI Schedule C tax preparation as an avenue to asset building and small business development will move communities to further economic vitality. Working with established partners, namely in Indian Country, provides credibility and the ability to increase access to resource networks already existent in the community.

17. www.RuralDynamics.org 1.877.275.2227 SETI as Asset Development Individual Development Accounts [IDAs] Financial Education Courses Business Networks [MIBA, State, etc.] Business Planning Resources Bridge to Benefits [work support programs] Financial Resources [Accounts, Credit Counseling, etc.] Alternative Products [Savings Bond, A-RAL, etc.] Understanding that clients, especially our self-employed filers, need to be viewed holistically, Rural Dynamics’ SETI project links filers with additional resources, including:

18. www.RuralDynamics.org 1.877.275.2227 How a Rural SETI Program can Work Understanding that many filers did not identify as “self- employed” or understand simple tax terms or forms was key to gaining trust, especially in Native communities. Outreach to self-employed filers through business networks, associations, and already trusted resources proved most effective. Marketing in rural and Reservation communities often took a non-traditional form in its most successful incarnations.

19. www.RuralDynamics.org 1.877.275.2227 Challenges of Rural SETI Distance and Time Nature of SE businesses in rural America [ag versus retail] Marketing and Outreach Volunteer base comfortable with Schedule C “The Philanthropic Divide” New program component, establishing trust Remote population Training

20. www.RuralDynamics.org 1.877.275.2227 Advantages of Rural SETI Tight-knit business networks Passionate volunteer base Community Growing audience of SE filers Grassroots support Low-cost or no-cost word-of-mouth marketing Opportunities for innovative approaches Collaboration

21. www.RuralDynamics.org 1.877.275.2227 Visit www.taxhelpmontana.org for more information on Rural Dynamics’ SETI programwww.taxhelpmontana.org Karen Heisler karenh@cccsmt.org 406/454.5707