United Way Knox County

The Issue:
Fifty percent of Americans have less than $1,000 in net financial assets, while 31 percent of Americans have no or negative savings. This lack of a "financial safety net" when combined with low wages, makes it even harder for families to save, creating a cycle of spending and debt that is difficult to break.

Low-income families face challenges in preserving and growing cash assets to achieve goals. These challenges include lack of cash management/budgeting skills and of knowledge on available saving and investing mechanisms. Additional barriers reported when seeking assistance include cost, stigma, lack of transportation, rigid eligibility criteria, and disrespectful service providers.

The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return. The Internal Revenue Service estimates that millions of dollars go unclaimed by potentially eligible Knox County residents each year.

Our Focus: We are committed to creating an environment in which low-income workers and vulnerable populations:
		Are aware of social service supports, qualifications and opportunities;
		Access supports and report customer satisfaction;
		Take advantage of the Earned Income Tax Credit (EITC) and other tax benefits;
		Save, spend and invest their money in ways that advance their financial security.

Strategies: To promote financial stability in Knox County, we are committed to:
		Increasing public awareness and utilization of existing and new social service programs that promote financial stability through information and referral efforts with the general public and target populations, including youth;
		Partnering with organizations that are familiar with low-income workers (businesses, labor unions, neighborhood associations, emergency service/social service provider agencies, etc.) to actively inform them about the EITC, availability of tax preparation, cash management assistance and other social service programs;
		Investing in competent, no- or low-cost assistance, for the preparing of tax returns and providing cash management assistance.

Opportunities:
A 2001 study found that EITC filers use their refunds to pay off debt, invest in education, and secure decent housing. Educating the public about EITC and providing free tax preparation assistance along with information on asset building will ultimately give local families more financial resources, leading them toward stability while benefiting our local economy.

Tax assistance sites present an opportune time to educate lower income taxpayers about the importance of bank accounts, building assets, good personal finance, budgeting, minimizing debt, maintaining good credit, and accessing available resources that improve the quality of life for their family. Opportunities to save are emphasized through the Knox County Saves campaign.

A budgeting coordinator pilot program is underway thanks to the generosity of the Osteopathic Heritage Foundation's Rural Homelessness Initiative. This program operates in conjunction with Consumer Credit Counseling Services of Franklin County, assisting clients in creating a budget while setting goals and securing resources that promote financial stability.

Several local churches provide thirteen-week courses for Dave Ramsey's Financial Peace University. This program instructs participants in how to save money and eliminate debt. Past classes have seen average net changes per family ranging from $4,000 to $10,000. A new partnership in 2009 utilizes monies from the Osteopathic Heritage Foundation Rural Homelessness Initiative for scholarships and incentives at three area courses.

The Ohio Benefit Bank is a counselor-assisted Internet application that helps low and moderate income households apply for a range of public benefits, as well as file tax returns. This resource is available through many local social service agencies. Volunteers are utilized to provide tax preparation assistance, along with information on other benefit programs available through The Ohio Benefit Bank.

2-1-1 is an information and referral line that will continue to increase communication opportunities and awareness about EITC eligibility and tax preparation assistance sites. In addition, 2-1-1 provides callers with general information about programs that promote family stability.

United Way of Knox County Inc., 110 East High Street, Mount Vernon, OH 43050 Ph. 740 397-5721 Fax 740 397-5762
liveunited@uwayknox.org