Economic Benefits of Workplace Tax Assistance
National Credit Union Foundation Distributes Filene Institute Report
As a resource for credit unions providing tax assistance as part of the REAL Solutions® program, the National Credit Union Foundation (NCUF) is distributing a new report:
The Economics of Serving Low-Income Employees at Tax Time:
Implications for Credit Unions.
This report is published by the Filene Research Institute and partially funded by NCUF.
And it’s counter-intuitive!
This report is not intended to simply tweak existing Volunteer Income Tax Assistance (VITA) programs.
Potential Revenue for Credit Unions
|Rather, the report suggests opportunities for credit unions to provide revenue-producing tax assistance to:|
Credit union employees
Members and non-members (especially those residing in densely populated, low-income or underserved areas)
Large companies’ employees (especially select employee groups of credit unions)
Overlooked Delivery Channel
|Further, the report suggests how credit unions could partner with tax preparers, non-profits, and corporations to provide fee-based tax assistance in the workplace – an often overlooked delivery channel.|
Savings for Employers
|In the report’s case study, a large company (Staples) saved $480 for each employee who received tax assistance (at a cost of just $75).|
|It also proved to be an investment in loyalty.|
Employees who received tax assistance in the workplace were 32% more likely to remain at their employer a year later.
"Fee-based workplace tax assistance could be a new way for credit unions to expand services, build net income, attract new loyal members, and strengthen relationships with companies in their communities," says NCUF Executive Director Steve Delfin.
"For all of these reasons, we plan to incorporate findings from this report into the REAL Solutions program moving forward."
|This report is one of many strategic collaborations between NCUF and Filene.|
Delfin says by "working together, we can leverage intellectual capital and practical experience to help credit unions provide products and services that have proven effective attracting members with low wealth and modest means."
Find tax assistance resources on the REAL Solutions Impact Center!