Community Spotlight
by Emily Landes
Tax preparation may seem like a dull way to volunteer your time. But seeing the tears in the eyes of a single mom who realizes that she’s going to be getting thousands back this year, or getting a hug from a new citizen who is relieved to be finished with that first, scary tax-preparation experience is anything but boring.
In fact, says Kristy Koberna, executive director of the nonprofit Tax-Aid, providing free tax services to low-income people in the Bay Area can be “exciting,” “fascinating” and even “amazing.” That’s why she’s been directing the program, available to anyone whose income is $39,000 or less, for seven years, even though she originally only signed on for a few months. “I just kind of stumbled on it and fell in love,” she says.
Koberna says she sees the same level of excitement from her tax-prep volunteers, largely CPAs, lawyers and accounting students. Many first-time volunteers return to Tax-Aid the following tax season, and some have even been with the program since it began 20 years ago. “What they really love is just seeing the client reactions,” she explains. “It’s so tangible. Imagine saying, ‘You are going to get $4,500 back.’ The reality of it is a very rewarding experience.”
Of course, the free tax assistance is also rewarding to Tax-Aid’s clients, many of whom spend their refunds on rent, food and overdue bills. But, by partnering with the United Way’s “Earn It, Keep It, Save It” program, Tax-Aid is trying to get these low-income families to think about more than just paying off the most pressing expenses. There is a big push to actually begin a savings account, often through San Francisco’s new no- or low-cost banking program, Bank on San Francisco.
Koberna admits that it’s not always easy to convince people who just finished the hours-long process of doing their taxes to stick around for further financial advice. “It’s a challenge because taxes are not a pleasant experience generally, so people want to get in and want to get out,” she says. “But as we’re building more of these partnerships, we’re learning how to attract people.” Some new strategies include starting some financial planning programs outside of tax season, having one toll-free number (2-1-1) to access all of the “Earn It, Keep It, Save It” partners, and educating clients about commercial check cashers and other predatory financial services.
Also new this year are several changes to tax law that could be a big help for families who are just starting to save. For the first time ever, the IRS is allowing people to split their automatic refunds between two or more accounts; Tax-Aid clients can put some of their refund into checking and some into savings instead of having to decide between the two. Another new change gives $30 to $60 back to anyone who has a phone bill, even if they aren’t filing a return. Additionally, San Francisco is giving $100 to anyone living in the city who has children and qualifies for the federal Earned Income Tax Credit.
All a qualified person or family has to do to get all these new refunds, and other tax prep and financial services, is bring their W-2s and other tax forms to one of the 38 Bay Area “Earn It! Keep It! Save It!” locations. Many of these sites have translators in Spanish, Cantonese, Mandarin, Vietnamese, Russian and Tagalog, as well as daycare. Last year, volunteers at San Francisco sites processed over 8,000 returns, for a grand total of $8.2 million in state and federal refunds.
It’s a remarkable accomplishment, especially considering that Tax-Aid runs on a budget of about $200,000 a year, which Koberna says would not be possible without the support of its primary sponsor KPMG, as well as the financial and organizational support of the United Way, and the free publicity in city schools and on MUNI buses. She also asks property owners and managers to help further spread the word about the program by putting signs up in common areas. It’s the right thing to do, she says, and refunds will help those in financial trouble pay their rent in full and on time.
Koberna hopes that Tax-Aid and the “Earn It! Keep It! Save It!” program will help families pay their rent and also get their financial house in order. “The biggest picture is a concerted effort to bring everyone to the table to help people get the tools, resources and support to really be able to make it in San Francisco,” she says.
In fact, Koberna’s future goals for Tax-Aid include getting analytical, rather than anecdotal, evidence that the organization is truly helping the people that it is trying to reach. She wants more data that shows not just how many people filed and what they got back, but also how many opened a savings account, how many began paying down debt and how many are taking financial education classes. “I just hope that we can help to fulfill the vision of connecting the tax clients to these other services and more effectively measure the effect that we’re having,” she comments. “This is all about helping people to be happy, self-sufficient and secure. If I had one wish, it would be to know for sure that we had done that.”
The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of SFAA or SF Apartment Magazine. For more information on Tax-Aid or to volunteer, please visit www.tax-aid.org or call 415-963-5133. Emily Landes is the managing editor of SF Apartment Magazine and Rental Housing. Copyright © 2007 by SF Apartment Magazine. All rights reserved.