United Way of Snohomish County
Joni was one of the United Way of Snohomish County’s first tax site clients. Making just $20,000 a year, Joni was stunned to learn her refund would be more than $5,000. Despite paying a commercial preparer the year before, she had not received the EITC. Armed with a substantial return, Joni immediately put it to good use.
She bought a better used car and received a better job because of her enhanced transportation. The better job led to a better apartment. Five years later, Joni is making twice what she made when she came to the tax site and is renting a townhome. As Joni herself said to tax site staffers recently, “I’m in a great place.”
A United Way of Snohomish County Volunteer assists a client.
People like Joni are exactly why United Way of Snohomish County became involved in community tax preparation. Although the United Way has served the people of Snohomish County for more than 70 years, its Financial Security initiative is relatively new. Realizing that the EITC is one of the country’s largest and most successful programs for removing individuals from poverty, United Way set out to improve the abysmal rate of eligible individuals not claiming the EITC; more than $10 million was going unclaimed in Snohomish County each year.
Like most NCTC members, United Way of Snohomish County takes a holistic approach to helping their clients. According to Deborah Squires, United Way’s Vice President of Impact, Marketing & Communications, “United Way brought the community together a decade ago to examine community needs and develop targeted outcomes. Increasing the ability of families to be more self-sufficient was a main objective.” Squires also said that United Way partners with other providers so that the work being done is not duplicated. “This began with the Individual Development Account program, a coalition of housing providers, and has continued with the Financial Asset Development Coalition that brings together all programs involved in various aspects of increasing economic stability.”
Ten years later, it seems the plan is working. Currently, United Way houses five tax sites which have served 4,439 clients to date, leading to $6.9 million in returns, $2.4 million of which was from the EITC. These sites have also opened 86 Individual Development Accounts (IDAs) and assisted clients in purchasing 142 U.S. Savings Bonds worth more than $17,000. About 20 clients participate in a regular financial education class.
The types of clients being served, however, make United Way of Snohomish County even more special. Typical clients make an average of $22,000 a year and are single-parents households. Snohomish County’s unemployment rate is 10% and residents face an $18 an hour housing wage (i.e. a standard two-bedroom apartment requires a family to make $18 an hour to be affordable). Many do not speak English well – or at all. Depending on the year and site, United Way is able to offer tax services in eight to ten different languages. Without a public transportation system, residents often find it difficult to get to and from work.
Squires said that United Way faces future challenges as well. Despite exceeding goals every year since The Financial Stability initiative began, recruiting volunteers is difficult. And with no public transit options, volunteers can find it difficult to get to tax sites. Outreach is also difficult with such a diverse population. Squires said that the 2-1-1 phone helpline has been especially effective in reaching non-English speaking clients.
This year, Squires said United Way will expand its services even further. Savings Bonds, in particular, will be a focus for the organization. “We were one of the few programs selected for the pilot project that allowed tax site clients to purchase savings bonds, and finished in the top 25 nationally for number sold. It’s very difficult for families making as little as our clients to save, but savings bonds offer an easy, safe, low-barrier way for families to begin to save.”
