Dear EITC Funders Network, |
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As this year comes to a close, the EITC Funders Network would like to extend our sincerest gratitude to all of our network member. This has been a year full of progress for the network and the field. We are so thrilled to be on this journey with all of you!
Over the past year, we have been able to accomplish a great deal on behalf of our members, partners and the people for whom your work has impact. This year, we have been able to:
- Foster greater connections and collaboration across the network
- Create a space for members to brainstorm long-term strategies for the field
- Test strategies related to messaging, communications and trusted messengers
- Continue to build connections across the funder ecosystem
We are also incredibly proud of our partners who made our latest pooled-fund opportunity, the COOP Fund, a huge success. Together, we were able to learn many lessons about how to improve awareness, outreach, engagement and access to the CTC and EITC. You can read the final report here. Highlights from the report can be found here.
In this issue of the newsletter, we are sharing events, reports, learnings from members and resources. Next year, we have lots of great things in store for the network. Please keep an eye our for opportunities to connect, share, learn and plan with members of this network and our partners.
Thank you for your continued commitment to expanding access to tax credits across the country and for your membership in the EITC Funders Network. We wish you a happy holiday season and great new year.
Sincerely,
Ami & Deneisha
EITC Funders Network
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National EITC Awareness Day is on
Friday, January 27, 2023!
The IRS estimates that 1 in 5 eligible taxpayers do not claim the EITC. Each year, the IRS and national partners join in a coordinated outreach effort to increase tax credit eligibility awareness. EITC Awareness Day helps shine a spotlight on refundable credits to increase awareness among taxpayers who may be eligible. This year, even more people are eligible due to the expansions made possible by the American Rescue Plan. EITC Awareness Day will serve as the field's kickoff to tax season.
On EITC Awareness Day, we hope you will all help us to raise awareness by doing one or more of the activities on the list below. Our collective efforts will help more people learn about and claim this valuable tax credit.
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Interview with a Field Leader |
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Promoting Work, Reducing Poverty, and Building Financial Security
The EITC Funders Network brings together charitable foundations working to make a positive impact on economic security for individuals and families through tax credits, specifically, the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC). Our network is focused on the protection and expansion of the federal CTC and EITC at the state and federal levels.
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Ami Nagle
Director, EITC Funders Network
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Deneisha Thompson
Senior Associate, EITC Funders Network
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Question #1
Why did the EITC FN undertake these projects?
This year, the EITC Funders Network worked with our partners on several special projects. This interview will highlight two of them. We supported a new pooled-fund called the Community Outreach & Opportunity Fund (CO-OP Fund) aimed at maximizing the number of individuals and families who got access to the expansions made possible by the American Rescue Plan Act. We also supported a social media campaign aimed at reaching young people who were newly eligible for the EITC during this past tax season.
The expansions of the federal CTC and EITC present a critical opportunity to dramatically improve financial stability for families with low income. However, these expansions could only achieve their goals if families know about the credits, are able to enroll, and can get their taxes done in free and non-predatory settings. A key implementation challenge was that families who earn the least do not typically file income tax returns because they are not required to (sometimes called, non-filers). Therefore, the IRS has no record of them, and they would not get the CTC payments automatically via direct deposit like many middle- and higher-income families. A big push to reach an estimated 5 million non-filers and also assist them with three interrelated touchpoints: outreach and navigating enrollment, sharing stories of success and shaping the local narrative on families in need, and helping families to file or reconcile tax returns in early 2022 became the focus of the COOP Fund.
Additionally, with the passage of the American Rescue Plan Act (ARPA), the federal EITC was expanded to low-income young adults not claiming children on their taxes. For the first time, many more young adults could get $1500 back into their pockets, but they needed to file their taxes to do so. Understanding this was a very hard-to-reach population, the EITC Funders Network partnered with 1235 Strategies to develop and implement a social media influencer campaign to directly reach young adults through their existing networks during the final weeks of tax season.
In both the COOP and youth-focused social media projects there was an element of experimentation. With the CO-OP project the experiment took the form of… Could we stand something up in a short period of time and could the community foundation pay that critical “last mile” role? With the 1235 project, the experiment centered around how social media influencers could be a conduit of information to help low-income, young adults get tax benefits in low-cost settings.
The passage of ARPA provided an important opportunity to reduce poverty among families. Right away a question was raised about the role of philanthropy vis a vis large government programs. What was the role of philanthropy of implementing public programs? A role of the EITC Funders Network is to bring our funders together in alignment around work. When there started to be more and more of these conversations about how philanthropy could proactively help these programs be successful, we knew there was an opportunity for us to work as a bridge.
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RESEARCH- How families used the advanced Child Tax Credit- New research by JP Morgan Chase Institute shares how families used the advanced CTC. Finding #1 indicates that "Households spent 40 percent of their July advanced Child Tax Credit payments within one week, transferred 18 percent to other accounts, and held 41 percent as cash in their checking accounts."
Read the other findings and full report here
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REPORT- State Child Tax Credits and Child Poverty: A 50-State Analysis- "This report presents state Child Tax Credit options that would reduce state child poverty rates by 25 or 50 percent when coupled with existing federal law, which provides a maximum of $2,000 per child, is not fully refundable and phases in with earnings."
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BLOG- Family Security Act 2.0 Child Allowance Would Help Families with Kids, with Drawbacks for Single Parents
According to the Tax Policy Center, "The Family Security Act 2.0 Framework introduced this past June by Senators Mitt Romney (R-UT), Steve Daines (R-MT), and Richard Burr (R-NC) emerged as negotiations over extending the 2021 expanded child tax credit stalled. While FSA 2.0 would leave many families better off, others – particularly single parents – could actually face a tax increase due to the proposal’s fiscal offsets."
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CALL TO ACTION- Our Last Chance to Expand the Child Tax Credit for Families Before the New Year- "Since the CTC expired, poverty rates have spiked and families are finding it harder to meet their expenses.
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The Center on Budget and Policy Priorities is a nonpartisan research and policy institute that advances federal and state policies to help build a nation where everyone — regardless of income, race, ethnicity, sexual orientation, gender identity, ZIP code, immigration status, or disability status — has the resources they need to thrive and share in the nation’s prosperity. It combines rigorous research and analysis, strategic communications, and effective advocacy to shape debates and affect policy, both nationally and in states.
UPDATE- CBPP provides a comprehensive CTC update that explores the impact of the expansions and advanced payments provided by the American Rescue Plan Act. Read the update here.
BLOG- This blog post explores the importance of the CTC for rural families. Read the blog post here.
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Take a look at the EITC Funders Network Resource Pages to find helpful information and resources that you can use or share with your grantee partners in preparation for tax season.
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"It is said that a rising tide lifts all boats ... "
As Grantmakers, how can we ensure that the ripple effects of the times we currently navigate do not cause the communities we serve to be swept away?
At the FPN Summit, we will gather to learn and explore how to improve the lives of Floridians most vulnerable to the impact of economic realities, policies that harm, and environments under attack. By remaining open to exploration and discovery, we can fuel new ways to engage with our partners and work more collaboratively across the state to elevate the voices of those we serve. Nimbly adapting to change - both within the philanthropic sector and beyond -will be essential as we tackle the challenges faced in our state. Through reflection on where we have been and what is possible, along with a willingness to take risks and work together, we can overcome any obstacle.
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April 20, 2023 | Arlington, VA
Public budgets are one of the most important policy instruments of our government. They are moral document that reflects our values and priorities through decisions on how to tax residents and businesses and spend these collective resources. These decisions impact what families have to spend on basic needs and invest in their future, define the size of the government and its role in the national economy, and affect the lives of all Americans.
EOF hosts an annual Budget and Tax Briefing to provide funders and philanthropic advisors with a unique opportunity to learn about and discuss why federal and state budget and tax work matters to national, state and local philanthropy.
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About the EITC Funders Network
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The EITC Funders Network brings together funders interested in the Earned Income Tax Credit, free- and low-cost tax preparation, and asset building. The Network seeks to increase awareness of EITC-related projects, foster collaboration, share information about the current status of EITC-related work, and help shape the future of the field.
The EITC Funders Network is generously funded by:
Annie E. Casey Foundation
Charles and Lynn Schusterman Family Philanthropies
Gates Foundation
Rockefeller Foundation
W.K. Kellogg Foundation
Anonymous
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