BUTTE, Mont. — Numerous credit unions across the country have gotten behind the Volunteer Income Tax Assistance (VITA) program, but a group of five CUs here have worked together to have a substantial impact on their community.
VITA prepares and electronically files both state and federal income tax returns taxpayers, helping them to ensure not just that their taxes are filed and that they get any returns they are owned, but also that those refunds aren't eaten by tax preparation firms. The income cutoff for 2009 was $42,000, but for the upcoming tax year it will rise to $48,000.
Here in Butte, EDTECH FCU, EnerGComm FCU, The Heritage FCU, Mile High FCU and Mountain West FCU have formed a partnership Since 2006, the local VITA program has filed 2,475 tax returns, which have led to $1.7-million in tax refunds. The CUs estimate VITA has helped save taxpayers who have participated some $442,000 in tax preparation fees.
The credit unions jointly promote the VITA service to the community with posters, statement inserts, PSAs on radio and television, as well as an Internet listing. In addition, employees of the credit unions volunteer to be "greeters" at the walk-in sites who help with sign-in and paperwork.
Leah Salazar, manager of $4.8-million Mountain West FCU, which serves 1,189 members, said three of the five credit unions in the partnership offer the free tax services in-house, while the other two direct those interested to designated locations.
Growing Support
"We've been involved in VITA for three or four years, and usage goes up each year," she said. "We have a lot of support from the league, and as word gets out, more and more people want to be part of it."
Salazar said she and her sister are part of VITA as they volunteer to help every year. Those interested can visit Aldersgate Church on designated Thursdays during tax season, "and on Saturdays the VITA program gets volunteers together who go out to local libraries," she said.
Salazar credited Jeanne Saarinen, executive director of Montana Credit Unions for Community Development, with getting the five Butte CUs together to form the VITA program. MCUCD is the charitable arm of the Montana Credit Union League. Saarinen said MCUCD provides support services and advice to the five CUs in Butte, but deflected Salazar's praise.
"We helped them start the program, we provide policies and procedures, we help recruit and train volunteers, and we are the behind-the-scenes transmitter of the tax returns," she said. "We provide technical assistance, but the credit unions take all the phone calls and provide all the assistance. They are the ones who make it happen."
Next year will mark the fourth tax season the Butte-area credit unions have worked together.
Saarinen noted there was a tax assistance service in Butte through AARP prior to the credit union VITA program, but the volunteers with the AARP program were very unhappy and were ready to quit in 2007.
"Through a stroke of luck we heard about each other," she recalled. "It has gone from one site at a church once a week before the credit unions got involved to several sites."
In 2006, MCUCD piloted a tax assistance program with two credit unions in four small Montana communities: Cutbank, Conrad, Fairfield and Fort Benton.
"We took what we learned from that experience and applied it to Butte. The five credit unions volunteered to participate during a meeting of all Butte credit unions. They collaborated together to receive grant funding from NCUA."
Both Salazar and Saarinen said VITA is an example of the good credit unions can do. Salazar said people "are just overwhelmed when they hear about it. They just love the program. We help a lot of elderly who otherwise would be out there paying for it. The program gives special one-on-one time."
Agreed Saarinen: "This is cooperation among cooperatives in action. The key is the local credit unions are working together to make a sustainable community program. Of course, it would not be possible without the volunteers who make it happen."
Best Practices CUJ 2009
CU: Butte, Mont. Area Credit Unions
Best Practice: Community
Service via VITA
