Progress 08/01/09 to 07/31/13
Outputs
Target Audience: During this past year we continued to reach low and moderate income households in rural Georgia and in high-poverty areas. We reached these households at tax time providing tax and financial education services. Our partnerships expanded and included the following location throughout Georgia: Athens, Dalton, Fort Valley, and Moultrie. The average household income for those reached by this project was less than $28,000. In this final year of the project we reached over 1,257 households throughout these rural and high poverty areas. The second target population for this grant was students attending HBCU. A Ph.D. student graduated from UGA with support of this project and is now on faculty at one of the target HBCU schools. A financial planning program is being developed and college students at the school are having greater opportunities to study financial planning and pursue professional careers in the field of financial planning. This will expand the number of financial planners from underrepresneted communities, which will potentially increase trust of financial planners among underrepresented populations. Changes/Problems:
Nothing Reported
What opportunities for training and professional development has the project provided? This project provided extensive training and development opportunities for students. Over the span of this project, over 400 undergraduate and graduate students across multiple institutions have recieved in-depth training in tax law, tax filing practices, tax preparation software, and savings strategies available at tax time. In addition, over 150 students recieved training in financial education and/or coaching skills, and interpersonal communication. These students have also passed certification test offered through the IRS. How have the results been disseminated to communities of interest? The results of this project have been shared with academic communities through conference presentations. A publication was also produced which outlines how to structure service-learning projects around the tax time services and financial education. The publication provides detailed information on how to establish partnerships with community agencies in order to minimize the operational burden on faculty while maximizing experiential learning opportunities for students. This partnership publication was distributed to the National Community Tax Coallion, a national organization that serves as a clearinghouse for best practices in taxtime community coalition development. The publication was also shared with the SPEC Office of the Internal Revenue Service. SPEC is responsible for the administration of the Volunteer Income Tax Assistance program throughout the country. What do you plan to do during the next reporting period to accomplish the goals?
Nothing Reported
Impacts
What was accomplished under these goals?
Goal 1: Expand experiential learning opportunities within the field of financial planning and increase financial services and education among low and moderate income households. 1. This grant funded project has helped establish and expand experiential learning opportunities in financial planning at The University of Georgia, Dalton State College, Moultrie Technical College, Fort Valley State University, and Clark Atlanta University. 2. Student's awareness has been raised with many students choosing to puruse career paths targeting low to middle income households rather than the traditional upper income households. In addition, through community partnerships with local non-profits and financial institutions students have had the opportunity to work with agencies seeking to promote the financial well being of underserved populations. 3. Graduate students have been primary or assistant site supervisors in Athens, Dalton, Dublin, and Fort Valley sites over the span of this grant project. Additionally, graduate students who have worked as supervisors, and who have subsequently graduated, continue to work at the VITA sties they helped to supervise while graduate students. 4. Over the span of this project over 3,500 low and moderate income households in rural and high-poverty areas of Georgia recieved free federal and state income tax preparation and filing services. In addition to these free services, individuals also recieved financial coaching; financial education regarding: Health Savings Accounts, Flexible Spending Account, U. S. Savings Bonds, and retirement savings. In addition to these services, many tax filers took advantage of the partnership that this project formed with financial institutions and opened checking and savings accounts, refinanced high cost debt, or applied for and recieved mortgage loans. Goal 2 Recruitment and retention of underrepresented graduate students. 1. Over the span of this project four additional underrepresented graduate students enrolled in the financial planning program and five existing students from underrepresented populations completed their graduate programs in financial planning, including two students that recieved their Ph.D. The current students are progressing toward completion. 2. Both Ph.D. students were hired by schools of their choice. Both are successful in their current positions and serve as role models for other students from underrepresented populations. Through the expansion of the experiential learning model to multiple universities and colleges, more people in the community have greater access to financial education and low-cost (free) and high quality financial services. 3. Every student participating in the experiential learning program has pased certification exams offered by the IRS and has also gained valuable one-on-one client experiences with dozens of clients. The certifications and experience has proven very advantageous for students seeking employment.
Publications
- Type:
Journal Articles
Status:
Awaiting Publication
Year Published:
2013
Citation:
Hudson, C. R., & Palmer, L. Low-Income Employees: The Relationship Between Information from Formal Advisors and Financial Behaviors. Financial Services Review (In Press).
- Type:
Other
Status:
Published
Year Published:
2013
Citation:
Palmer, L. (2013). Building Sustainable Partnerships: The VITA Proposal for Your Community. Athens, GA: University of Georgia.
- Type:
Conference Papers and Presentations
Status:
Accepted
Year Published:
2012
Citation:
Palmer, L., Pichot, T., & Kunovskya, I. (2012, October). Bringing the Future to the Present to Incentivize Savings at Tax Time Through the Use of Solution Focused Brief Coaching. Paper presented at the 26th Annual Meeting of the Academy of Financial Services, San Antonio, TX.
- Type:
Conference Papers and Presentations
Status:
Accepted
Year Published:
2012
Citation:
Palmer, L. & Kunovskya, I. (2012, October). First Things First: Soft Pre-Commitments and the Decision to Save Among Low-Income Tax Filers. Paper presented at the 26th Annual Meeting of the Academy of Financial Services, San Antonio, TX.
- Type:
Conference Papers and Presentations
Status:
Accepted
Year Published:
2012
Citation:
Palmer, L., Pichot, T., & Kunovskya, I. (2012, September). Giving Expression and Hope to the Future: Assessing Two Tax Time Brief Intervention Strategies. Paper presented at the Financial Therapy Association Conference 2012, Columbia, MO.
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Progress 08/01/11 to 07/31/12
Outputs
OUTPUTS: Expanding Access to Financial Education and Services to Underserved Populations Increasing Underserved Populations' Access to Financial Education and Services through Service-Learning continued to grow and expand during the second year of the project. In addition to the student-staffed Volunteer Income Tax Assistance (VITA) sites continued at three higher education sites in Georgia from the prior year: Dalton State College (Dalton,GA), University of Georgia (Athens, GA), and Moultrie Technical College (Moultrie, GA), a new site was added in Dublin, GA. The Dublin, GA site was staffed by students from Oconee Fall Line Technical College and supervised by UGA graduate students and Georgia United Credit Union Personnel. Seventy-seven students from four institutions gave approximately 3,500 hours of effort to this project. These student hours include the time spent being trained by IRS representatives, taking certification exams, and providing direct services to clients. Over 2,500 hours was spent providing services directly to clients. Fort Valley State University and the University of Georgia also began collaborations on a partnership that will expand service-learning and VITA services to that institution and community. Separate funding to initiate that project was secured and Fort Valley State University will also begin providing services to a six county region in rural central Georgia beginning in 2013. Long and short-term savings products (i.e., bank accounts, short-term certificates of deposit, U.S. Savings Bonds, etc.) were promoted at all of the sites. In addition to these asset building products and services, the Athens, GA site also produced an eight minute coaching video which clients viewed either before they arrived at the tax preparation site (via a YouTube link), or watched on a table PC at the VITA site. This coaching service will be expanded to additional sites in 2013. Increasing the Number of Underrepresented Professionals The second part of the project seeks to increase the number of underrepresented professionals in financial planning by establishing a financial planning degree program at Clark Atlanta University, a Historically Black College or University. Faculty at Clark Atlanta University have been persistent in pursuing the formal establishment of a financial planning degree program at their campus. This program would also serve Morehouse and Spelman College students. Progress has continued to be made, and in Fall of 2012, the proposal will be heard by the Academic Council, the highest curriculum decision making body at Clark Atlanta University. Clark Atlanta University continues to offer financial planning classes to its students. PARTICIPANTS: Lance Palmer (University of Georgia), Tom Cochran (Georgia United Credit Union), Jack Rielley (University of Georgia), Paul Annis (Georgia United Credit Union), Joan Koonce (University of Georgia), Sharon Gibson (University of Georgia), Michael Rupured (University of Georgia), Swarn Chatterjee (University of Georgia), Joseph Goetz (University of Georgia), Crystal Hudson (Clark Atlanta University), Kassim Ali (Clark Atlanta University), Earl Davis (Clark Atlanta University), Jamie Connors (Dalton State College), Andrea Scarrow (UGA Cooperative Extension, Moultrie, GA). Georgia United Credit Union continues to be a significant partnering organization. The partnership continues to create opportunities throughout the state through its reach to both academic and financial institutions. IRS-SPEC Offices, which oversee the VITA program nationally have become strong partners in seeking to expand the service-learning partnerships to other institutions throughout Georgia. Cooperation and joint strategic planning to increase participation have increased. Clark Atlanta University, Dalton State College, and Moultrie Technical College continue to prove to be strong partners in this effort. Each of these partners appears to be becoming largely independent from the UGA sites, which is great. Strong local leadership, community support, and institutional support have supported increasing autonomy at these sites. Training and development is embedded into the project's design. Nearly all project personnel participate in annual tax law updates conducted by IRS personnel. In addition, software training sessions are also conducted on a regular basis. All student-volunteers participating in the project receive annual training and must certify through the IRS to be qualified to prepare tax returns. TARGET AUDIENCES: Two target audiences exist as part of this project. The first target audience for this project is low- and moderate-income households residing in rural and high poverty areas. The intention of the project is to increase this population's access to free, unbiased financial services and education. The outcome of the project is increased financial resources and access to financial products flowing to this population and thereby increasing the populations opportunity to save. The Volunteer Income Tax Assistance program provides an excellent "point of entrance" to reach the target population, as filing taxes is both mandatory and brings the potential of large cash refunds for many low- and moderate-income households. The second target population is students studying in financial planning or accounting majors. These students are currently preparing to provide financial services, education, and products to the general population upon graduation. However, once professionals, only the high-income segments of the population are targeted. By increasing service-learning opportunities among these students to both gain experience and realize the positive impact they can make on this population, not just as students, but throughout their careers. The objectives of reaching this target market are to increase students' professional experience and to help future professionals engage in innovation to bring more inclusive financial products to the market place. PROJECT MODIFICATIONS: A coaching video was developed during this period of the project. Earlier efforts to provide financial education proved difficult given the large number of volunteers and the varied nature of each individual tax return. The coaching video provides a standardized approach to the client engagement process, while priming the client for their meeting and conversation with the student tax preparer. In this manner, the quality of each client interaction can be set to a uniform minimum standard (through the video) and each client will receive the same invitations to save for their future. While this is consistent with the initial intent of the project, to provide financial education, the means by which this is accomplished has varied. The video has proven to be effective in accomplishing this goal. The methodology used to create the video is based in behavior change theory, adult learning theory, counseling, and behavioral economics. Feedback on the video suggests that all clients who watched the video have received it well.
Impacts
During the third year of the project, over 1,000 households were reached with this service, with nearly 350 households being serviced in rural areas and the remaining households coming from high poverty areas. Bilingual (English and Spanish) assistance was offered in Dalton and Athens. As a result of the service learning activity, low and moderate-income consumers saved over $250,000 in tax preparation and filing fees. Based on IRS estimates, these households also saved as much as $300,000 in refund anticipation loan fees. In addition to actual fees saved, service-learning participants claimed tax refunds for their clients in excess of 1.5 million dollars that went directly into rural communities and low and moderate-income households. Total savings, potential savings, and refunds claimed exceeded 2 million dollars during the third year of the project. A randomized trial test study (N=106) of the coaching video was performed and results indicate that the video led to a 47% increase in the likelihood of saving and a 210% increase in the amount individuals desired to save. The randomized trial will be converted to a baseline comparison study in 2013 using the coaching video as the treatment across all sites. Prior year use of Form 8888, which splits tax refunds between transaction accounts, savings, U.S. Savings Bonds, and other financial instruments, will be used to determine the change in savings behavior resulting from the video. Modifications to the video will also be made based on participant feedback, focus groups, and producer recommendations. An outcome from the efforts to increase the number of underrepresented professionals in financial planning is that several African-American graduate students at UGA recently completed their graduate work in family financial planning and have entered the profession. One Ph.D. student in particular, Crystal Hudson, is now teaching at Clark Atlanta University, helping to build their financial planning program. The service-learning partnership handbook was presented to IRS for feedback and distribution. It was also peer-reviewed and shared with several affiliated institutions in Georgia. The coaching video was successfully produced and has been made available to other land grant institutions such as University of Missouri. Results of the coaching video test study were presented to: Consumer Finance Protection Bureau, Annie E. Casey Foundation, IRS - SPEC Division, Financial Therapy Association, and Academy for Financial Services. The project plans to maintain the current service-learning sites and institutional partners, while continuing to expand the number of partner institutions. Joan Koonce from the project team has established working relationships with IRS-SPEC personnel to begin recruiting more academic institutions throughout GA into the service-learning partnership program. We have also met with administrators from Georgia Affiliates, which represents the credit unions throughout Georgia, to look at ways in which partnerships can be expanded. A request for a no-cost extension on this project was made in June of 2012 and the project was granted a 1 year no-cost extension.
Publications
- No publications reported this period
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Progress 08/01/10 to 07/31/11
Outputs
OUTPUTS: The project titled Immediate and Long-term Strategies for Bringing Financial Planning to Underserved Populations through Experiential Learning and Student Recruitment continued to grow and expand during the second year. Student-staffed Volunteer Income Tax Assistance sites continued at three higher education site in Georgia: Dalton State College (Dalton,GA), University of Georgia (Athens, GA), and Moultrie Technical College (Moultrie, GA). Across these three sites, students completed service-learning projects for classes which involved, in aggregate, approximately 2,000 hours of IRS training and certification, and tax preparation service for low and moderate-income households in their respective communities. Service-learning participants completed 921 federal income tax returns across the three sites. Bilingual (Spanish) assistance was also offered in Dalton and Athens. At the Athens, GA site, a U.S. Savings Bond educational campaign was initiated and evaluated. Other tax time savings programs were also discussed with clients including retirement savings accounts, healthcare related savings accounts, and tax savings strategies. The second part of the project deals with the creation and establishment of a financial planning degree program at Clark Atlanta University, a historically Black college or university, with the help of Dr. Davis and Dr. Alli. Due to economic constraints outside the grant, the progress on the financial planning degree program at the institutional level slowed; however, Clark Atlanta University faculty continue to be committed to get the degree program implemented and continue to work with their administration. A new financial planning program curriculum proposal is being prepared for presentation to the college and university. During the reporting period, CAU taught three new financial planning program classes to their students, and a total of 30 new students enrolled in those courses. In addition, six Clark Atlanta University students attended the Financial Planning Spring Banquet hosted by the University of Georgia. Their attendance at the banquet helped foster excitement about the anticipated degree program, graduate work, and professional opportunities. University of Georgia faculty also made graduate program recruitment visits to Clark Atlanta University during the second period of the grant. Finally, a doctoral student (alumni of Clark Atlanta University) supported by an assistantship from the grant successfully passed comprehensive exams and has begun work on her dissertation in financial planning and education. PARTICIPANTS: University of Georgia Cooperative Extension faculty continue to be integral in the expansion of the services provided. Dr. Joan Koonce, in Athens, continues to invite and train county agents on VITA opportunities and ways in which county agents can organize VITA efforts. Andrea Scarrow, Colquitt County agent, assists with organization and implementation of the VITA program in Moultrie, GA. Dr. Alli at Clark Atlanta University continues to work hard and diligently to create and establish a self-sustaining and feasible financial planning program that will be able to serve the following institutions: Clark Atlanta University, Spellman College, and Morehouse College. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
As a result of the service-learning activity, low and moderate-income consumers saved $182,200 in tax preparation and filing fees. Based on IRS estimates, these households also saved as much as $200,000 in refund anticipation loan fees. In addition to actual fees saved, service-learning participants claimed tax refunds for their clients in excess of 1.48 million dollars that went directly to rural communities and low and moderate-income households. Total savings, potential savings, and refunds claimed exceeded 1.87 million dollars during the second period of the project. At the test site in Athens, approximately 8% of low-income households purchased U.S. Savings bonds. Total bond purchases exceeded $3,000. Thus, a certain group of low and moderate-income tax payers are benefiting immediately from the financial education by making an immediate decision to save, and knowledge about procedural methods to improve uptake of tax time savings opportunities were identified.
Publications
- Palmer, L., Koonce, J., Robison, W., & Goetz, J. (2010). Financial education and volunteer income tax assistance. In S. J. Eitel (Ed.), Proceedings of the Association for Financial Counseling and Planning Education, 2010, (pp. 104 to 108). Denver, CO.
- Palmer, L., Goetz, J., Chatterjee, S., & Johnson, L. N. (2010). Health care reform: Opportunities for service-learning in the discipline of financial planning. In R. D. Martin (Ed.), Proceedings of the 24th Annual Meeting of the Academy of Financial Services, (Electronic copy, 14 pp.). Denver, CO.
- Palmer, L., Goetz, J., Chatterjee, S., Koonce, J., & Johnson, L. (2011). Helping and receiving Service recipients perceptions of service-learning participants. Meeting of the North American Colleges and Teachers of Agriculture, 2011. Edmonton, Alberta, Canada.
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Progress 08/01/09 to 07/31/10
Outputs
Increasing Underserved Populations' Access to Financial Education and Services through Service-Learning During the first year of the project, service-learning programs to provide free volunteer income tax assistance to low and moderate income households were initiated at three higher education institutions: Dalton State College (rural, low-income area), Moultrie Technical College (rural, low-income area); and University of Georgia, Athens (high persistent poverty rates). Through ongoing partnerships with project partners, community employers and service providers, such as Georgia Federal Credit Union, community service agencies, local governments, school districts, and senior citizens centers, there were many opportunities identified to provide employee benefits education in combination with tax preparation services. Due to the high interest in such tax credits as the Earned Income Tax Credit and Additional Child Tax Credit, tax season was the ideal opportunity to provide financial education to low and moderate income households. Over 130 students from the three different institutions were trained and certified through the IRS to prepare and file tax returns as part of this project. These students provided over 2,500 direct hours of service in their communities and prepared and filed over 621 federal income tax returns. In addition to helping file federal income tax returns, students also filed approximately the same number of state income tax returns. While preparing the tax returns, students also provided service recipients with education on a variety of personal finance topics including employee benefit options that they may have overlooked. Expansion of Financial Planning Professionals Initiative In addition to providing immediate financial education and services to underserved populations, the project also initiated the formation of a financial planning degree program at Clark Atlanta University, an Historically Black College or University, with the help of Dr. Davis and Dr. Alli. The new financial planning major option was prepared and presented to the college and university curriculum committees and is awaiting final approval. In preparation for the new major, and as a way of generating interest among students for the new major, a new course in financial planning was taught as an elective. Student response to the class was strong and positive. In addition to the institutional progress made on the new major, an advisory board, consisting of industry representatives and faculty from other financial planning programs, was formed. The board will serve as an ongoing body of support for the new major, and will allow for external accountability and feedback. Expanding Underrepresented Faculty within Financial Planning Project faculty from UGA and Clark Atlanta University also convened two graduate school recruiting events at Clark Atlanta University. Faculty spoke on opportunities for graduate studies at the University of Georgia in the area of financial planning. PRODUCTS: No project products this period. OUTCOMES: Outcomes of the first year are the initiation include: two new service-learning initiatives in financial education and services at two rural Georgia schools, Dalton State College and Moultrie Technical College, and the initiation of a new financial planning major at Clark Atlanta University, an HBCU. DISSEMINATION ACTIVITIES: Progress on the project was presented at two national academic and professional conferences. FUTURE INITIATIVES: The project plans to maintain the current service-learning sites and institutional partners, while expanding the number of tax returns that will be prepared at those sites. We also plan to see the completion of the financial planning major at Clark Atlanta University, along with the registration of that major with Certified Financial Planning Board of Standards, Inc. Publications relating to the project will also be coming forth near the conclusion of this second year. Recruitment efforts from Clark Atlanta University and Dalton State College will also continue and we believe will be fruitful.
Impacts
To date the project has helped generate over $630,000 in federal income tax refunds and has saved consumers receiving these services over $120,00 in income tax preparation and filing fees.
Publications
- No publications reported this period
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