1. March 16 and 17, 2006 Chicago, IL

2. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Achieving Sustainability, Scale, and Impact in Community Development Finance: EITC and Tax Preparation Organizational Design Federal Reserve Bank of Chicago March 16-17, 2006 Kirsten Moy, Greg Ratliff and Amy Brown The Aspen Institute

3. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Supporters of this Meeting  Conference Partner: The Federal Reserve Bank of Chicago  Meeting Funder:  The Annie E. Casey Foundation  Charrette Organizers:  The National Community Tax Coalition & The Center for Economic Progress  Forum Participants  You! Thank you!

4. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Supporters of the Conference Series  Conference Partner: The Federal Reserve System  Research Partners  The F.B. Heron Foundation  GE Consumer Finance - Americas  Deutsche Bank  Past Supporters  The John D. and Catherine T. MacArthur Foundation  The Fannie Mae Foundation  Forum Participants - you! Thank you! GE Consumer Finance Americas

5. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM

6. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Conference Goals introduce a new framework for scale and sustainability for the field of community development institutions explore the feasibility of new business models with potential for promoting scale and sustainability in the EITC/Tax Preparation field provide a forum where all stakeholders can participate in the exploration and design of business models and initiatives and share ideas about the future of the field including the role of the National Community Tax Coalition encourage dialogue leading to action on implementation of business models and initiatives where appropriate

7. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM What is Scale?  More capital  More customers  More effectiveness “Economies of scale” usually refers to the development of mass markets and progressive cost reduction through increased business volume. Can the industry groups assembled achieve this kind of scale?

8. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Why Pursue Scale?  To reach more people  To provide access to services to as many low income people and communities as possible on a permanent and sustainable basis  To tap into economies of scale  To become more sustainable  To have greater impact in low income communities

9. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM But  But … scale itself is not necessarily a suitable proxy for success.  And the very characteristics - high customization and high touch - that helped make each group successful in the past are barriers to achieving greater impact because they lead to high cost delivery.  In other words, there’s no “economy of scale” if the cost to deliver the service goes up with increasing volumes. So we need to better understand what scale is, and the dynamics of getting to scale.

10. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Model for Taking an Innovation to Scale Source: Alan Okagaki & Associates IdeaExperiment-ation(Innovation & Refinement) EarlyReplication(Innovation BestPractice Innovation at Scale! the fantasy short cut

11. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM A Better Model for Taking an Innovation to Scale Source: Alan Okagaki & Associates IdeaExperiment-ation(Innovation & Refinement) EarlyReplication(Innovation BestPractice Standardization Infrastructure Building Wide Scale Roll Out Innovation at Scale!

12. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM New Innovation at Scale! Source: Alan Okagaki & Associates Idea Experiment- ation (Innovation & Refinement) Early Replication (Innovation & Refinement) Best Practice Standardization Infrastructure Building Wide Scale Roll Out the keys to scale

13. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Our Process  Research  Publications  Conferences  Interviews yy zz Case Studies Banknorth Group 7-11 VCOM Visa Ace Cash Express Allied Capital The Reinvestment Fund Fannie Mae Self Help ACCION Dell Unified Western Grocers Carpet One

14. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons from the Case Studies

15. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons 1. Profitability was the primary driver of product development. The ability to produce a diversified yet complementary set of products was critical to achieving scale.

16. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons 1. Profitability was the primary driver of product development. The ability to produce a diversified yet complementary set of products was critical to achieving scale. 2. Demand for services or a clear market gap were the primary drivers in determining which products and services to scale up.

17. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons 1. Profitability was the primary driver of product development. The ability to produce a diversified yet complementary set of products was critical to achieving scale. 2. Demand for services or a clear market gap were the primary drivers in determining which products and services to scale up. 3. Geographic expansion was central to generating sufficient volume of transactions to reach scale.

18. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons 1. Profitability was the primary driver of product development. The ability to produce a diversified yet complementary set of products was critical to achieving scale. 2. Demand for services or a clear market gap were the primary drivers in determining which products and services to scale up. 3. Geographic expansion was central to generating sufficient volume of transactions to reach scale. 4. Infrastructure investments were crucial to growth. Investments often increased integration of operations and facilitated product development.

19. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons 1. Profitability was the primary driver of product development. The ability to produce a diversified yet complementary set of products was critical to achieving scale. 2. Demand for services or a clear market gap were the primary drivers in determining which products and services to scale up. 3. Geographic expansion was central to generating sufficient volume of transactions to reach scale. 4. Infrastructure investments were crucial to growth. Investments often increased integration of operations and facilitated product development. 5. Technology investments often led to increased efficiency and cost savings.

20. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons 6. Companies partnered to gain specific knowledge or expertise, or to access a needed component of the product or service.

21. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons 6. Companies partnered to gain specific knowledge or expertise, or to access a needed component of the product or service. 7. Capital was raised several times; the volume of capital raised was tens of millions in every instance.

22. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons 6. Companies partnered to gain specific knowledge or expertise, or to access a needed component of the product or service. 7. Capital was raised several times; the volume of capital raised was tens of millions in every instance. 8. Several organizations changed their legal structure to accommodate growth.

23. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons 6. Companies partnered to gain specific knowledge or expertise, or to access a needed component of the product or service. 7. Capital was raised several times; the volume of capital raised was tens of millions in every instance. 8. Several organizations changed their legal structure to accommodate growth. 9. Regulatory changes often supported or enabled growth and expansion.

24. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons 6. Companies partnered to gain specific knowledge or expertise, or to access a needed component of the product or service. 7. Capital was raised several times; the volume of capital raised was tens of millions in every instance. 8. Several organizations changed their legal structure to accommodate growth. 9. Regulatory changes often supported or enabled growth and expansion. 10. Different management skills were needed at different points in the growth process.

25. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons 6. Companies partnered to gain specific knowledge or expertise, or to access a needed component of the product or service. 7. Capital was raised several times; the volume of capital raised was tens of millions in every instance. 8. Several organizations changed their legal structure to accommodate growth. 9. Regulatory changes often supported or enabled growth and expansion. 10. Different management skills were needed at different points in the growth process. 11. The ability to adapt to changing market conditions allowed organizations to continue growing.

26. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Product InnovationOrganizational Innovation Industry Innovation Design for scale (e.g., standardization, simplification & refinements) Infrastructure Technology Capital Partnering Management New organizational structures Regulatory policy Strategic positioning Industry intermediaries Industry infrastructure New sources of capital impact Achieving Scale actions

27. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM “Innovations for Scale and Sustainability in EITC Campaigns: Lessons for Community Development from Two Years of Pilots” By Amy Brown For the Annie E. Casey Foundation

28. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM The 2005 Pilots  Chicago, IL  Louisville, KY  Tulsa, OK  Atlanta, GA  Baltimore, MD

29. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons from the Pilot Innovations  Lesson #1:It may be easier to borrow rather than build the infrastructure for scale, but maintaining relationships is a constant challenge for partnership efforts.  Lesson #2:Successful partnerships with government or the private sector require a far greater understanding of those sectors than the field currently has.  Lesson #3:More research is needed to understand what services and products the market wants and how to best deliver them.  Lesson #4:A true calculation of program costs is a prerequisite to roll-out, and to be scalable, programs must reduce per-unit costs.

30. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Lessons from the Pilot Innovations  Lesson #5:Roll-out will not be achieved by good-will alone; partners will require a clear value proposition, backed up by data.  Lesson #6:Community agencies will need to increase their organizational capacity and sophistication in order to sustain partnerships and implement programs at scale.  Lesson #7:The size of the solution must match the size of the problem; small pilots, by their very nature, may never be able to point the way to scale.

31. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Next Steps in Pursuit of Scale  Structured negotiations to develop more effective partnership agreements  Use of technology to minimize direct staff involvement in service delivery  Development of new products that directly mirror popular fringe services  Adoption of specific marketing techniques to reach population subgroups  Data collection to document program costs and outcomes

32. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Next Steps in Pursuit of Scale  Research to better understand the characteristics of potential partners, the environment in which they operate and key sectoral trends that affect them, as well as identification of critical attributes to look for in establishing partnerships.  Market research to better understand the demand for financial products and services among low-income consumers, what services they use and why, and how best to market services to them.  Data collection to develop more sophisticated value propositions around the benefits of financial services to key potential partners, including employers, government, and specific corporate sectors.

33. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Issues Facing The EITC & Tax Preparation Field

34. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Problem Statement “The free tax preparation movement is clearly at a crossroads. If it is to continue growing as well as expand its impact……, it will need to systematically address…..some of its strengths and weaknesses…..determine whether it seeks to pursue more long-term and broad-based partnership opportunities…..(and) confront whether a scattered and highly variable approach to running programs….. is ultimately sustainable and has the potential to go to scale.” EITC & Tax Preparation Concept Paper

35. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Key Challenges Identified in Concept Paper  Achieving scale and sustainability in free tax preparation programs, given funding limitations and issues associated with managing large on-the-ground operations  Achieving broader asset development goals by connecting clients with other products and services that can help them manage their finances and save for the future

36. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Questions for Consideration in the Charrettes 1.Can programs continue to grow w/o new resources (e.g., fee-for-service, dues, direct subsidies)? 2.Are there opportunities for partnerships and cross-subsidy through collaborations w/ financial institutions, tax software vendors and paid tax preparers? 3.Are there economies of scale achievable through shared infrastructure for hundreds of organizations offering free tax prep?

37. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Questions for Consideration in the Charrettes 4.How can EITC programs connect tax filing and asset development? Given limited success to date, is this a realistic goal? If so, what are more effective mechanisms? 5.Do existing financial products and services have the potential to achieve scale? What new products & services could help achieve asset development goals? 6.How might the National Community Tax Coalition and other national entities facilitate future growth and program efficiencies in the free tax preparation field?

38. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Special Considerations for the National Community Tax Coalition as an Industry Intermediary

39. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM CUSTOMERS INDUSTRY MEMBERS INDUSTRY MEMBERS TRADE ASSOCIATION INDUSTRY INTERMEDIARY TRADE ASSOCIATION INDUSTRY INTERMEDIARY INVESTORS & FUNDERS POLICY MAKERS & REGULATORS POLICY MAKERS & REGULATORS Basic Model of Key Players Industry leaders play a powerful role in setting standards and creating standardization in the industry.

40. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Industry Structure 1 CUSTOMERS INDUSTRY MEMBERS INDUSTRY MEMBERS TRADE ASSOCIATION INDUSTRY INTERMEDIARY TRADE ASSOCIATION INDUSTRY INTERMEDIARY INVESTORS & FUNDERS POLICY MAKERS & REGULATORS POLICY MAKERS & REGULATORS Industry Structure 1: The Corporation -Customer Dynamic In most industries, direct interaction between the customer and the industry member is a primary factor.

41. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Industry Structure 2 CUSTOMERS INDUSTRY MEMBERS INDUSTRY MEMBERS TRADE ASSOCIATION INDUSTRY INTERMEDIARY TRADE ASSOCIATION INDUSTRY INTERMEDIARY INVESTORS & FUNDERS POLICY MAKERS & REGULATORS POLICY MAKERS & REGULATORS Industry Structure 2: The Small Players Dynamic

42. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Industry Structure 3 CUSTOMERS INDUSTRY MEMBERS INDUSTRY MEMBERS TRADE ASSOCIATION INDUSTRY INTERMEDIARY TRADE ASSOCIATION INDUSTRY INTERMEDIARY INVESTORS & FUNDERS POLICY MAKERS & REGULATORS POLICY MAKERS & REGULATORS Industry Structure 3: Subsidy Dependent

43. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM In industries dominated by smaller players … … industry networks and other forms of affiliation become more important as agents for successful scale and growth.  Access to common infrastructure can enable networks of organizations to work cooperatively to deliver greater volumes of product with increased efficiency  Networks can facilitate needed market research, product development and partnerships  Strong training and development efforts through network services support the development of management talent  Sufficient industry clout can create a more supportive legal, regulatory and policy environment and increase the availability of subsidy where needed

44. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Innovations Panel - Parts 1 and 2  Vaughan Cox, La Union del Pueblo Entero  Lee Davenport, FoodChange  Steve Neumann, Center for Economic Progress  Steven Dow, Community Action Project of Tulsa County  Dennis Campa, City of San Antonio  Mary Dupont, Nehemiah Gateway  Lauren Leimbach, Community Financial Resources  Peter Tufano, D2D Fund

45. THE ASPEN INSTITUTE FEDERAL RESERVE SYSTEM Achieving Sustainability, Scale, and Impact in Community Development Finance: EITC and Tax Preparation Organizational Design Federal Reserve Bank of Chicago March 16-17, 2006 Contact Information: Kirsten Moy, Greg Ratliff and Amy Brown Kirsten.moy@aspeninst.org, Gregratliff6@aol.comGregratliff6@aol.com, brown.consulting@yahoo.combrown.consulting@yahoo.com

46. March 16 and 17, 2006 Chicago, IL

47. Panel on Innovation : La Union del Pueblo Entero Presented by: Vaughn Cox LUPE Program Development Director EITC & Tax Preparation Charette Achieving Scale, Sustainability and Impact March 16-17, 2006 Chicago, IL

48. Description of Innovation  High quality competitive services  Tax preparation & filing  E-file & Direct Deposit (for those with bank account)  Mail-in returns  tax due  ITIN applicants  Bank products (commercially available)  Refund transfer (for un-banked customers)  RAL (for emergencies)  Priced to cover operating expenses

49. Innovation Goals  Service to members  More reasonable cost than commercial outfits  More reliable in the event of a problem  Sustainability of the organization  Services available all year  Build confidence in organizational leadership

50. Implementation Lessons o Growing market share – takes time & investment o Distribution of 10,000 flyers – minimal response o Minimal radio advertising – not effective o Loyal customers return when served well

51. Potential for Scale  Good potential with significant investment  Much larger volume of returns is possible  Non-profit approach to an important task  Help customers at a reasonable price  Continual contact & support throughout year  Open doors to financial literacy & wealth-building opportunities

52. Implementing at Scale Nationwide non-profit Tax-Prep franchise outlets with competitive local advertising Local non-profits Purchase license for nominal fee Train & Certify staff Collect and share preparation fees to cover ‘franchise’ expenses Local banks offer ‘RAL’ products through non-profit tax prep

53. March 16 and 17, 2006 Chicago, IL

54. Panel on Innovation: FoodChange Presented by: Lee Davenport EITC & Tax Preparation Charette Achieving Scale, Sustainability and Impact March 16-17, 2006 Chicago, IL

55. Staffing Innovations  Volunteer Preparers (3 groups)  Paid Preparers (4 groups)  Paid Quality Checkers and Management

56. FoodChange’s EITC Goals  Decrease Errors  Respond to Demand  Upward Funding Spiral

57. Lessons Learned  High Staff Costs delivered Quality  Float needed for responsive funding  Changed staff sourcing models

58. How big is the Scale?  New Friends  Partners  Others

59. Transferability: Income Support Centers  Large Scale Sites lead network (T1)  TA and Direct Service to CBO Partners (T2)  Small CBO partners funnel clients (T3)  Referral Community (T4)

60. Lee Davenport Assistant Director, Income Policy FoodChange 39 Broadway, 10th Floor New York, NY 10006 212.894.8053 646.852.1485 (cell) 212.616.4990 (fax) www.foodchange.org

61. March 16 and 17, 2006 Chicago, IL

62. Panel on Innovation: Center for Economic Progress – Financial Empowerment Presented by: Steve Neumann EITC & Tax Preparation Charette Achieving Scale, Sustainability and Impact March 16-17, 2006 Chicago, IL

63. Description of Innovation  Concept - Provide financial services to low wage workers through four local employers  Services offered Financial Education - 500+ individuals have participated in workshops over 2 years Credit Union services - 600+ credit union members through the employers, nearly 200 new in two years Free Tax Prep services - 170+ people served by free tax prep, saved $17,000+ in fees, returned $200,000+ in federal and state refunds  Services well received - 96% of individuals would recommend workshops and tax services to colleagues

64. Innovation Goals  Examine employers as channel to reach low wage workers with needed financial services  Build employer buy-in for long term sustainability  Why Employers? Source of most key financial transactions Financial stress impacts job performance Regular opportunities to reach workers Financial institutions already partnering

65. Implementation Lessons  What worked best? Strong take-up at employers where HR staff “bought in” Employers provided outreach, some paid time Employers went beyond the pilot – initiated own financial literacy series, underwriting emergency loans  What didn’t work? Employers have not provided financial support HR staff turnover led to high project costs to simply maintain the employer relationship  Changes made More focus on employers who are “bought in” Expanded to work with local workforce intermediary

66. Potential for Scale  Some potential for scale up Tools are cheaply adaptable to multiple employers – outreach materials, curricula, tax prep services Offering services through multiple employers in same geographical area drives down unit cost of delivery  Cast wide net to find receptive employers A few employers nationally are leading the way – paying for tax prep and/or financial education onsite Cost to deliver services is lower when employer is already bought in Inexpensive to add to what they may already be doing  Other possible benefits Potential for good measurement of outcomes among employees - HR data, follow up surveys Increased employee retention / job stability

67. Implementing at Scale  Reach more employers through intermediaries Large “bank at work” programs More partnerships with workforce intermediaries Credit Union associations – many staff who used project services were also credit union members  Centralize some aspects Collection of data – attempts to measure long term impacts on employees and employers Gathering and sharing of best practices Creation of tools  Customize application of services for each employer’s specific needs

68. March 16 and 17, 2006 Chicago, IL

69. Panel on Innovation: Providing benefits eligibility screenings through commercial tax preparers Presented by: Steven Dow, Community Action Project of Tulsa County EITC & Tax Preparation Charette Achieving Scale, Sustainability and Impact March 16-17, 2006 Chicago, IL

70. Description of Innovation  Partnership between CAPTC and H&R Block to offer benefits eligibility screening as part of the tax preparation process  HRB tax prep software identified likely clients  HRB tax professionals offered the screening service  CAPTC benefits eligibility specialists provided actual screenings

71. Innovation Goals  Maximize number of people screened for benefits Utility: ID need/potential, focus resources  Informally compare alternative distribution channels—”free” vs. “fee”  Test deployment of re-branded BESO application in non-CAP site  Test ability to partner with perceived “competitor” and for-profit firm

72. Implementation Lessons  Clients behaved differently than expected Less receptive, offer seemed “out of the blue” Strongly preferred later screenings, by phone  “Value proposition” less effective than expected Clients forgot about screening offer Not tied to specific economic value (benefit $)  Consequences of phone preference Workflow issues: loss of electronic advantage BESO not optimized for phone delivery

73. Potential for Scale  Conduct screenings by phone Responds to preference of most clients Centrally located call-center—smoothes out demand “bumps”  Issues and caveats How to reorient BESO for better phone delivery How to preserve/maximize electronic advantage  Potential for effectiveness CAPTC: 20,000 clients vs. HRB: 20M clients 1,000x order of magnitude leap

74. Implementing at Scale  Goal: maximize # of clients screened and enrolled Integration with tax prep software  Transparent to client, minimize add’l burden/resources  Eliminate redundant questions and data entry by reusing info  Requires software developers, tax preparation providers, and various agencies  The more local the benefits, the more complex the process Utility, effective use of resources  Assess likelihood of eligibility throughout process  Eliminate questions that screen for benefits the client is clearly not going to be eligible for Immediate, electronic application  Requires “data bridge” to many agency platforms  Maximize # of eligible clients who ultimately receive benefits

75. March 16 and 17, 2006 Chicago, IL

76. Panel on Innovation: San Antonio Coalition for Family Economic Progress Presented by: Dennis J. Campa City of San Antonio Department of Community Initiatives EITC & Tax Preparation Achieving Scale, Sustainability and Impact March 16-17, 2006 Chicago, IL

77. Description of Innovation  Shared leadership  Coalition leadership comprised of five diverse organizations  External supporters include: Other public entities Non-profits Financial institutions Community organizing groups

78. Coalition Partners   United Way   Advertising, funding, and 211-hotline   Catholic Charities   Volunteer recruitment, personnel and logistics   Annie E. Casey Foundation   Site management, grant maker and funder   City of San Antonio, Department of Community Initiatives   Site management, grant maker and funder, technical assistance, facilities   IRS   Software, technical assistance

79. External Supporters   Financial Institutions   Grant making, banking products, loan refinancing   Competition to sponsor sites   Local foundations   Grant making, volunteers, linkages   Electronic and print media   Led by City’s Public Information Office   Weekly radio and print stories   Spanish language outreach

80. Innovation Goals Challenges:  Low use of the EITC  High use of paid tax preparers and RALs  High number of unbanked taxpayers Goals:  Ensure taxpayers receive the maximum credits  Introduce them to mainstream financial services  Connect them with multi-benefit services

81. Implementation Lessons  Coalitions take time, patience and constant nurturing  Keep steering committee small but find vehicles for greater inclusion  Clearly define roles and responsibilities  Remain flexible and adjust on the fly  Always start with the future in mind

82. Potential for Scale  Scale might range from 50,000-60,000 returns or 33% of eligible EITC filers  Create greater opportunities for bundling services  Change service delivery and open door for new funding partners  Allow for deeper embedding of Family Economic Success principles  Serves as a platform for multiple financial product

83. Implementing at Scale  Significantly expands service delivery opportunities based on the number of participants and their financial buying power  VITA co-located at: Municipal and County Courts Hospitals Utility customer service offices Financial institutions Investment clubs or cooperatives Public Libraries

84. March 16 and 17, 2006 Chicago, IL

85. Panel on Innovation: DE EITC Campaign Presented by: Mary Dupont EITC & Tax Preparation Achieving Scale, Sustainability and Impact March 16-17, 2006 Chicago, IL

86. Description of Innovation  IT Experiments  3-credit courses

87. 2005 IT Strategy2006 IT Strategy Secure Terminal Server for 10 tax sites with 10 workstations each: 3 remote servers – 1 backup, 1 production server, 1 TaxWise terminal, and 1 Netilla Firewall to access terminal server Peer to peer networks of 10 workstations with Taxwise on C drives for printing with back ups to a single computer High Speed broadband Internet Connections through cable installed at each location Broadband for downloads/updates and Wireless network cards Centralized efilingDe-centralized efiling and secure thumb drives for Site Managers Peer to peer networks in the field with Taxwise on each C-Drive Each site manager has their own transmitting computer Mixed bag of equipment: laptops, desktops, borrowed from site hosts, IRS, supplied by Nehemiah Equipment used exclusively for taxes IT consultant volunteersIT Manager on call 24/7 Volunteers receive CD rom with training curriculum and Taxwise for practice

88. University Partnerships Goal: Involve post-secondary institutions as strategic partners in the Campaign by including it in their curriculum Strategy: Meet with University presidents to “sell” idea Concept Origination: Replicate Fred Gordon’s strategy of a 3 credit course composed of tax training and community service Results: Three statewide universities adopted the course and 50 students enrolled and became volunteers Future Goals: Increase number of students and universities

89. Innovation Goals  IT: Increase security, centralize the return database without passing files back and forth, increase IT capacity and minimize IT issues in the field.  Universities: Insure an annual ongoing flow of qualified volunteers and identify other partners who may be willing to assume some operating responsibilities over time, ie. Recruit and train volunteers, host sites, fundraise to support operations.

90. Implementation Lessons  Lessons Learned: IT: Terminal server will only work if the software is compatible IT: Full time IT support is needed to manage a large scale operation IT: IT consistency is required in the field to minimize unwanted operating surprises Universities: Need to work from the top to get buy-in Universities: New course planning and implementation takes one year Universities: Students need discipline and coaxing in advance to motivate reliable participation Classroom training should happen in January when students are back from break  What worked best: IT: Terminal Server didn’t work with Taxwise. New tax software is needed to be compatible with terminal server. Univ: Once students get into the field they love the program.  What didn’t work: Terminal Server Training in December  Changes you have made: New IT system as described in chart: sell Terminal Server Evaluation will take place with students and stakeholders at university. Will change training dates, advertise course in curriculum guide for Fall 06, identify university liaison to motivate students to participate when tax season starts.

91. Potential for Scale  Scalable? IT – yes, with money Universities - yes  How big do you think it could it get? IT: With funding for equipment (laptops, thumb drives, broadband) can be implemented anywhere Universities: Automatic generation of hundreds of trained volunteers What other benefits could scaling up this innovation bring to the field? Both: Smoother site operations and more manpower allowing more returns

92. Implementing at Scale  National Roll Out: IT: national partnership with Compaq, Dell, Microsoft for hardware & operating systems software distributed directly to coalitions and VITA programs at the local level. Handbook on IT solutions including ingredients needed and implementation strategies, potential bugs and work arounds. Web-based technical assistance for IT solutions. (similar to PowerUp which implemented 1,000 community based tech centers) Universities: State universities and community colleges adopt the curriculum and buy in to the VITA portion of the program. Program becomes the service focus in college- based Accounting Fraternities.  E.g. Who would be involved in delivery? IT: IRS, NCTC, and local or state organizing entities Univ: Work through national post-secondary networks of state universities and community colleges to disseminate.  What aspects should be standardized and what would be customized? All aspects should be customized to adapt to local needs while maintaining the integrity of the basic systems.

93. March 16 and 17, 2006 Chicago, IL

94. Panel on Innovation: SVCs and Worker Centers Presented by: Lauren Leimbach EITC & Tax Preparation Charette Achieving Scale, Sustainability and Impact March 16-17, 2006 Chicago, IL

95. Description of Innovation  Distribute prepaid debit cards (SVCs) through Worker Centers  Utilize community organizing model as a marketing outreach strategy  Leverage collective bargaining power to negotiate product features, pricing, and revenue share with suppliers

96. Innovation Goals  Why Prepaid Debit Cards (SVCs)? Meets the market’s needs: virtual savings, purchase card, money transfer tool, bill payment, with options for phone minutes and picture ID Basic ID requirements to open account Portable Convenient  Mitigating the impact of globalization  Financial and social empowerment

97. Implementation Lessons What Works  The value of the community network 480+ interviews Focus groups to explore price points and messaging  Vendor cooperation Challenges  Training focus group moderators  Foundation funding lead times vs. pace of business negotiations

98. Potential for Scale  8-site pilot program to create a roll-out template with implementation options  140 Worker Centers have access to 3 million households  The larger the scale, the greater our power to negotiate consumer-friendly terms with business partners

99. Implementing at Scale The Alternative Progressive Economy  Network of CDFIs and Credit Unions as the banking platform  Non-profit Middle-marketer card issuer  CBO-based distribution network  Add-on products & services: Credit building, emergency loans, micro- finance Leveraging remittance flows for Int’l economic development projects

100. March 16 and 17, 2006 Chicago, IL