1. Establishing A Volunteer Income Tax Assistance (VITA) Site: How and Why By the National Credit Union Administration in partnership with the U.S. Internal Revenue Service Establishing a VITA Site: How and Why Presentation: Summer 2008 1

2. Quick Reference TOPICSLIDE # Purpose of Presentation 3 Objectives of Presentation 4 VITA Program 5 IRS VITA Grant Program 22 NCUA Resources 35 Establishing a VITA Site: How and Why Presentation: Summer 2008 2

3. Purpose of Presentation This PowerPoint presentation was developed for credit unions and accompanies a video of the same title. The video may be accessed from the NCUA website at: www.ncua.gov.www.ncua.gov 1. Follow the links to “The Resource Connection”, 2.Then “The Training Connection”, 3.Then “Presentations”. Establishing a VITA Site: How and Why Presentation: Summer 2008 3

4. Objectives of Presentation  Inform credit unions of VITA Program and the IRS VITA Grant Program.  Encourage credit union participation in the IRS programs.  Provide detailed information to accompany the “Establishing A VITA Site: How and Why” video.  Inform credit unions of the Community Development Revolving Loan Fund VITA Grant Program. Establishing a VITA Site: How and Why Presentation: Summer 2008 4

5. Internal Revenue Service Volunteer Income Tax Assistance Program Establishing a VITA Site: How and Why Presentation: Summer 2008 5

6. What is the VITA Program? 1.Free, income tax preparation for low-to- moderate income consumers provided by volunteers. 2.Volunteers are trained through program to prepare basic tax returns. 3.Returns are completed at community-based organizations approved by IRS (VITA sites). Credit unions can be VITA sites. Establishing a VITA Site: How and Why Presentation: Summer 2008 6

7. Purpose Addresses the needs of consumers of modest means by targeting Earned Income Tax Credit (EITC) eligible individuals and households, such as: Low-to-moderate income individuals & families Persons with disability Those with “Limited English Proficiency” Native Americans Residents of rural communities Establishing a VITA Site: How and Why Presentation: Summer 2008 7

8. Why Establish A VITA Site? For Members & Community Free Tax Preparation Electronic Filing Education & Outreach Financial Literacy Asset Building For Credit Union No/ Minimal Cost Training for Volunteers Free tax preparation software Potential to Increase Member Services (deposits, loans, etc.) Opportunity to Increase Community Involvement Establishing a VITA Site: How and Why Presentation: Summer 2008 8 Benefits of Participation

9. Why Establish A VITA Site? Successful Results  Credit union participation has grown from 64 to 246.  97 credit unions in coalitions  NCUA & IRS encourages participation. Establishing a VITA Site: How and Why Presentation: Summer 2008 9

10. Why Establish A VITA Site? 2007 STATISTICS Returns filed by credit unions thru VITA:  19,474 returns filed  Over $20 million in total refunds  $8.9 million in EITC dollars Establishing a VITA Site: How and Why Presentation: Summer 2008 10

11. How to Establish A VITA Site 1.Review IRS guide on VITA Sites 2.Contact Local IRS Office thru IRS Senior Tax Analyst Debra Chandler, who is national office coordinator 3.Obtain an Electronic Filing Identification Number (EFIN) 4.Recruit Volunteers 5.Schedule Training 6.Select Site Location 7.Select Site Coordinator 8.Market VITA Site Establishing a VITA Site: How and Why Presentation: Summer 2008 11 8 Steps

12. How to Establish A VITA Site 1.Obtain and review Publication 1084, an informational guide on VITA Sites.  By Email: www.irs.govwww.irs.gov  By Phone: (800) 829-1040 Establishing a VITA Site: How and Why Presentation: Summer 2008 12

13. How to Establish A VITA Site 2.Contact local IRS office.  Email Ms. Chandler at: debra.chandler@irs.gov to request information regarding the IRS local office.debra.chandler@irs.gov  Determine if the credit union will be a host or part of a coalition. If coalition, work with coalition. Refer to Steps 3 – 8 (on the following screens) for credit unions wishing to host a stand alone site. Establishing a VITA Site: How and Why Presentation: Summer 2008 13

14. How to Establish A VITA Site 3.Obtain an Electronic Filing Identification Number (EFIN).  Approximately six weeks to obtain EFIN. Establishing a VITA Site: How and Why Presentation: Summer 2008 14

15. How to Establish A VITA Site 4.Recruit Volunteers – Recommended resources:  High Schools; post secondary schools  United Way-Volunteer Centers  Professional and Civil Associations  Rural Volunteer Organizations (e.g., 4-H Club, County Extension Services) Establishing a VITA Site: How and Why Presentation: Summer 2008 15

16. How to Establish A VITA Site 5.Schedule Training.  Generally lasts one week  Usually conducted in December  Classroom or Web-based (Link & Learn) Establishing a VITA Site: How and Why Presentation: Summer 2008 16

17. How to Establish A VITA Site 6.Select site location with consideration to:  Preferably in low- to moderate-income neighborhoods  High-Speed internet capabilities  Reasonable accommodations (e.g., privacy, accessibility) Establishing a VITA Site: How and Why Presentation: Summer 2008 17

18. How to Establish A VITA Site 7.Select a Site Coordinator.  Responsible for day-to-day site operation 8.Market VITA Site.  Recommended to increase impact, particularly to encourage nonmembers to become members. Establishing a VITA Site: How and Why Presentation: Summer 2008 18

19. VITA Program Key Operation Period Mid-January - April 15 th  Depending what day the 15th falls on  Operating schedule as resources allow Establishing a VITA Site: How and Why Presentation: Summer 2008 19

20. What does IRS Provide? Establishing a VITA Site: How and Why Presentation: Summer 2008 20   Free training   Computers (based on availability)   Software (TaxWise)   Technical Support (Tax Law)   Computer Support

21. Contact the IRS directly.  To locate and obtain information from your local IRS Office, email IRS Senior Tax Analyst Debra Chandler at: Debra.Chandler@irs.gov Debra.Chandler@irs.gov  For inquiries about the VITA Program, email IRS staff at: Partner@irs.govPartner@irs.gov Establishing a VITA Site: How and Why Presentation: Summer 2008 21

22. Internal Revenue Service VITA Grant Program Establishing a VITA Site: How and Why Presentation: Summer 2008 22

23. What is the IRS VITA Grant Program?  A new funding initiative for the VITA Program.  In 2007, Congress appropriated $8 million in funds for this program.  Initial funding is for one-year.  Funds available until September 1, 2009. Establishing a VITA Site: How and Why Presentation: Summer 2008 23

24. Purposes of the Grant  Expand services to underserved populations and hard-to-reach areas.  Increase capacity to file returns electronically.  Enhance training of volunteers.  Improve accuracy rate of returns prepared by VITA sites. Establishing a VITA Site: How and Why Presentation: Summer 2008 24

25. Eligibility Criteria  One of the following: – Private or public Non-Profit 501(a) tax exempt organization (Credit unions are eligible under this provision.) – State or Local government agency (includes Native American Tribal governments) – Educational Institution under IRS Section 501 OR  Any regional, statewide, or local VITA coalition with one lead organization Establishing a VITA Site: How and Why Presentation: Summer 2008 25

26. Eligibility Criteria Also Must:  Comply with: – Applicable civil rights requirements – OMB guidance – Federal regulations – Federal tax and payment requirements  Have capacity to electronically file returns.  Demonstrate matching funds contributions (refer to next slides).  Obtain Data Universal Numbering Systems (DUNS) number. Establishing a VITA Site: How and Why Presentation: Summer 2008 26

27. Matching Funds  Dollar-for-dollar (1:1) match  Received by October 2008  Expended by September 2009 Establishing a VITA Site: How and Why Presentation: Summer 2008 27

28. Matching Funds  Acceptable forms of match: – Cash – Third party in-kind contributions (donated property or services- some restrictions apply) – Computer hardware (depreciable value) and software  Match may be a combination of the types listed above. See page 5 of the grant application for more information. Establishing a VITA Site: How and Why Presentation: Summer 2008 28

29. Matching Funds Ineligible Sources  Funds from other federal government agencies, including NCUA grants.  Services of students to satisfy academic requirements.  Expenses not directly related to VITA Program.  Cost of tax preparation software. Establishing a VITA Site: How and Why Presentation: Summer 2008 29

30. Evaluation Criteria  Strength of program standards  Geographic coverage  Prior performance in IRS volunteer program  Ability to partner or collaborate with multiple organizations  Quality of organization’s sustainability and growth strategy  Quality control process  Infrastructure to measure program effectiveness Establishing a VITA Site: How and Why Presentation: Summer 2008 30

31. Selection Process Three tier review process: 1.Initial review by the grant office. 2.IRS Ranking Panel will rank score the applications based on: – Background narrative – Internal data reports – Applicants program plan – Geographic diversity 3.Final approval by the Director of Stakeholder, Partnership, Education, and Communication (SPEC). Establishing a VITA Site: How and Why Presentation: Summer 2008 31

32. VITA Grant Program Key Dates – 2008 Funding Application Accepted7/1/2008-9/2/2008 Application Deadline9/2/2008 Review and Ranking9/2/2008-10/3/2008 Notification to Recipients10/30/2008 Funds Available for Draw12/2008 Mid-Year Grantee Report4/30/2009 Annual Grantee Report9/30/2009 Establishing a VITA Site: How and Why Presentation: Summer 2008 32

33. Contact the IRS Directly For inquiries about the VITA Grant Program, email IRS staff at: Grant.Program.Office@irs.gov Establishing a VITA Site: How and Why Presentation: Summer 2008 33

34. To obtain an IRS VITA Grant Application via: Establishing a VITA Site: How and Why Presentation: Summer 2008 34   Internet: www.irs.govwww.irs.gov use keyword “Community Network”   Telephone: 1-800-829-1040 (toll free)   E-mail: Grant.Program.Office@irs.govGrant.Program.Office@irs.gov   Mail: Grant Program Office 401 West Peachtree Street, NW, mail stop 420-D, Atlanta, GA 30308   Grants.gov website: www.grants.govwww.grants.gov

35. NCUA Resources NCUA’s Community Development Revolving Loan Fund Program VITA Grant Program provides financial assistance for eligible low- income designated credit unions wishing to offer VITA services to their members and community. For more information, visit the NCUA’s website at: http://www.ncua.gov/Resources/CreditUnionDevelo pment/Files/Programs/Grants/2009/NCUA6052.pdf http://www.ncua.gov/Resources/CreditUnionDevelo pment/Files/Programs/Grants/2009/NCUA6052.pdf Establishing a VITA Site: How and Why Presentation: Summer 2008 35

36. NCUA Resources Establishing a VITA Site: How and Why Presentation: Summer 2008 36   For inquiries about this presentation: Webcast@ncua.gov Webcast@ncua.gov   To learn about additional resources for credit unions visit: http://ncua.gov/Resources/CreditUnionDevelopment /ResourceConnection/index.aspx   To learn about NCUA’s VITA Grants visit: http://www.ncua.gov/Resources/CreditUnionDevelo pment/Files/Programs/Grants/2009/NCUA6052.pdf