DANVILLE REGIONAL FOUNDATION ANNOUNCES GRANT
Coalition to Develop Earned Income Tax Credit Program
DANVILLE, VA - (February 8, 2008) - The Danville Regional Foundation today announced a grant to a new coalition that aims to put more money in the pockets of the working poor and boost the economy of the region.
The Foundation has awarded a grant of $628,000 over three years to the BEST Coalition, an organization formed by the United Way of Danville-Pittsylvania County, Pittsylvania County Community Action, Virginia Legal Aid Society and Caswell County Senior Center. BEST is an acronym for Building Economic Success Together.
The goal of the BEST Coalition is to increase family self-sufficiency by developing an Earned Income Tax Credit (EITC) initiative for Danville, Caswell and Pittsylvania counties.
Enacted by Congress in 1975, the Earned Income Tax Credit is a refundable tax credit that reduces or eliminates the taxes that low income married or single working people pay and increases the funds they receive from the IRS. "The program provides families with additional income they can direct toward savings, education, debt reduction and other important family needs," said Karl Stauber, President and CEO of the Foundation.
The goal of the EITC is to reduce the tax burden on lower income workers, supplement their wages and encourage greater participation in the workforce. The program has lifted more working families out of poverty than any other federal program except Social Security.
If the BEST Coalition reaches its goal of a 50 percent increase in EITC returns, the result will be an increase of $13.4 million in funds annually for the region, beginning in the third year of the grant. More than 80 percent of tax refunds are spent in the region, so these funds will have a significant impact on the economy, said Stauber.
The EITC program represents a win-win for the Danville region, Stauber continued. "More people have money to become self-sufficient, and more money will be spent to boost the local economy by sustaining businesses, creating jobs and, in turn, generating more tax revenue."
The BEST Coalition anticipates a return on the grant of 200 percent by the third year, said Stauber. The return should increase annually.
Results of the grant should be "an increase in the number of eligible families who claim the tax credit, an increase in the affordability of tax filings and an increase in funds used to build assets among low income working families," said Stauber. Assets are defined as cash, savings, debt reduction and financial education.
The target market for the EITC program is the working poor. That includes workers with one or more children in their home with income of less than $40,000 and workers with no children with income below $14,120 for married workers or $12,120 for single workers. An outreach campaign will be directed to persons in their late 20s, those 55 to 64, laid-off or dislocated workers and single parents, he added.
The EITC program is expected to begin immediately.
According to the Census Bureau, the Danville region has a higher percentage of persons living below the poverty level than the average for Virginia or North Carolina. Danville has 20 percent of residents living below the poverty level while Pittsylvania County has 12.2 percent of its residents in that category. The Virginia average is 9.5 percent. Caswell County has 16.2 percent of its residents living below the poverty level, compared to the North Carolina average of 13.8 percent.
The Danville Regional Foundation seeks to develop, promote and support activities that improve the health, education and wellbeing of the residents of the City of Danville and Pittsylvania County, VA and Caswell County, NC. The Foundation has awarded approximately $18.9 million to six non-profit organizations or government agencies since its founding in 2005.
Return to News Home PageUnited Way Volunteer Income Tax Site
1225 West Main Street
Danville, VA
Phone: 792-3700
Hours: 9:30am to 12pm and 1:30pm to 4:00 pm Monday - Friday
BY APPOINTMENT ONLY.Pittsylvania County Community Action Volunteer Tax Site
713 Piney Forest Shopping Center
Danville, VA
Phone: 793-5627
Hours: 9:30am to 12pm and 1:30pm to 4:00 pm Monday - Friday
BY APPOINTMENT ONLY.Chatham Office Location
514 North Main Street, Chatham, Virginia 24531
434-548-1240
BY APPOINTMENT ONLY.AARP TaxAide Site
Caswell Senior Center
142 Main Street
Yanceyville, NC 27379
Monday - Friday; 8 am - 5 pm
Call for a TaxAide Appointment (336) 694-7447