University of Louisville Student Government Association Free Tax Service Project Proposal

2011-2012

The Boon Project Incorporated

TABLE OF CONTENTS

PROJECT DESCRIPTION 3

Introduction 3

Project Overview 3

Program History 3

Year 1 3

Year 2 3

Problem Statement 3

Recommendation 3

Explanation 4

Year 1 / 4
Year 2 / 5
Year 3 / 6
U OF L SGA FUNDING REQUESTS / 7
2011-2012 U of L Online Service / 7
LETTERS OF SUPPORT / 8
University of Louisville International Center / 8
U OF L SGA RESOLUTIONS / 9
Establish Official SGA Tax Service / 9

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PROJECT DESCRIPTION

Introduction:

In 2009, the University of Louisville Student Government Association (SGA) passed the 2020 Plan, with specific focuses on College Affordability and Student Services. One aspect of this initiative was for SGA to establish sustainable free tax preparation services for U of L students to utilize.

Project Overview:

This program provides a medium for U of L students, faculty, and staff to file their federal and state income tax returns using free preparation software. Through the purchase of the CINTAX software, international students are provided assistance with filing their federal returns.

Program History:

Our volunteers have assisted students, faculty, and staff for two years with tax preparation. Year 1, 2009-2010

- Volunteers served 500 students, 150 of which were international, through the VITA Program.

- Services were provided for approximately three months. The operation was based in

Davidson Hall Room 106B. Hours for the free tax service were Monday-Thursday,

10:30am-4:30pm.

- Student Government Association provided limited logistical support and funding; No

marketing materials were provided.

Year 2, 2010-2011

- Due to budget constraints and no funding or support from Student Government, we were unable to have a permanent location during the spring 2011 semester.

- We focused exclusively on international students and transitioned from a permanent

location to a “mobile workshop” model to promote scalability.

- We hosted two tax preparation workshops with the U of L International Center.

- In two days we assisted more international students than the previous year’s three

month operation (approximately 200 international students were served in 2011).

Problem Statement:

How can U of L SGA serve the greatest number of students, at the lowest cost, in a sustainable manner?

Recommendation:

U of L SGA needs to commit itself to this initiative, and move from a “mobile workshop” to a

“free online service.”

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Explanation:

Serving as project director for two years, I have seen the service transition into a more scalable, efficient, cost effective model.

Year 1 Program Requirements: “Permanent Location”

- 2 site coordinators (paid stipends) to staff site M-Th, 10:30am-4:30pm

- 20 volunteers to be recruited and certified

- Secure room reserved for 4 months

- 6 laptop computers

- 1 high capacity printer

- 4 ink toners

- Training Material

- 3 Banners

- Posters

- Flyers

Estimated cost for this model:$10,000-$15,000

Previous outcome: Approximately 500 students (150 international students).

PROs: Certified volunteers are actually trained by IRS to answer many difficult and challenging tax related questions. The volunteers actually prepare the return for the student.

CONs: Cost. In addition to reserving a permanent location, SGA is required to pay for the printing of all tax forms, multiple site coordinator stipends, extensive marketing, and for the recruitment and training of volunteers. Only ONE volunteer can assist ONE client at a time. Requires tremendous preparation during fall semester to secure guidelines with IRS and liability protection.

SUMMARY: When considering the annual problem of budget cuts, volatility of who holds SGA offices yearly, and the coinciding of tax season with SGA elections, we firmly recommend that SGA does not commit to a large scale, permanent, “brick and mortar” location. While it is certainly true that the model utilized in Year 1 provided the most detailed and user friendly service, it was the most expensive option, difficult to scale (only 1 volunteer can assist 1 client at a time), and very difficult to sustain. This is especially evident with what happened in Year 2 after SGA’s lack of financial support.

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Year 2 Program Requirements: “Mobile Workshop”

- 1 Project Director (paid stipend)

- 3-5 volunteers

- Reserve computer lab for each day of workshop (2-5 total)

- $250-$350 card to print returns and tax forms at library

- $199-$499 cost of CINTAX license (depending on number of students)

- 1 Banner

- Posters

- Flyers

Estimated cost for this model: $5,000.

Previous outcome: Approximately 200 international students.

PROs: Increased efficiency; 1 volunteer can assist 15 students with filing their own tax return using online software. No liability: the client is preparing their own return. Cheaper than permanent location, increased sustainability.

CONs: International students are not able to utilize free software to prepare state returns and must rely upon assistance with state department of revenue, independent of service via telephone. Volunteers are NOT able to answer any tax related question and can only assist with software related issues. Still requires marketing and logistical support.

SUMMARY: This model worked very well for the international students. Also, it was extremely efficient when compared to the previous year. Whereas in Year 1, only one volunteer could assist one client, the workshops enabled ONE instructor to serve 15-25 students per hourly session.

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RECOMMENDED: Year 3 Proposed Program: “Free Online Service”

- 1 Project Administrator (paid stipend)

- 1-3 volunteers

- $695 cost of CINTAX license

- Purchase a domain for a gateway website to online services

- Flyers/door hangers to be distributed in U of L Residence Halls

- Send monthly e-mails across student list-serv to market the service

Estimated cost of this model: $1,000-$2,000.

Estimated outcome: 750+ students (225+ international students).

PROs: Maximum efficiency and scalability. Lowest cost. ALL students could be served. Clients will be connected to online software they can use in the future and will be educated and empowered with a new skill. Students can be easily connected to the IRS Hotline for assistance with difficult tax questions. International students can be easily connected to state department of revenue for assistance via telephone.

CONs: Similar to the mobile workshop issue, international students will be required to directly contact state governments for assistance with filing state returns.

SUMMARY: Given the amount of money U of L SGA is willing to budget for this program, this is the most effective way to potentially serve virtually all eligible students at the University of Louisville. We recommend transitioning from a “mobile workshop” to a “free online service.” By utilizing this model as the “base” annual program, students will be guaranteed the free tax service for decades. In future years, depending upon availability of funds, a hybrid of all three models can be utilized to compensate for growth.

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U OF L SGA FUNDING REQUEST

Operating Expenses / Cost
Project Director Base Stipend / $500.00
Domain Registry / $35.00
Website/Online Marketing
Design / $270.00
Technology Licenses / $695.00

TOTAL: $1,500.00

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LETTER OF SUPPORT

University of Louisville International Center

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A RESOLUTION TO ESTABLISH

AN OFFICIAL UOFL TAX SERVICE

Sponsor: Carrie Mattingly

Co-sponsors: Kurtis Frizzell (SGA President)

Cara Monaco(SGA Services Vice President)

WHEREAS the University of Louisville SGA is mandated under the 2020 Plan to provide sustainable free tax services to students;

WHEREAS there are over 20,000 students who potentially qualify for free tax services at the

University of Louisville;

WHEREAS all international students are required to file the Internal Revenue Service Form

8843, regardless of earning income, thus desperately needing free tax services;

WHEREAS the International Center has partnered with Andy Bates and the nonprofit organization, The Boon Project to provide tax services to the international community;

BE IT RESOLVED BY THE UNIVERSITY OF LOUISVILLE STUDENT GOVERNMENT SENATE THAT:

· The University of Louisville Student Government Association partner with The Boon

Project to provide free tax services to the student body;

· The University of Louisville Student Association approve both the attached project description and budget allocation of $1,500.00 included as an addendum to this legislation;

· The University of Louisville Student Association President be granted the discretion to increase this allocation as needed for the service to a maximum of $2,500 without senate approval to maximize efficiency for program implementation and grant performance incentives;

· The U of L Tax Service Performance Bonus will be allocated along the following guidelines:*

o 500 students served: $250.00 bonus awarded;

o 1000 students served: $500.00 bonus awarded;

*All bonuses fall within the $2,500 maximum funding under Presidential discretion.

· The performance bonus will be awarded at the end of the tax filing season:

- April 15, 2012.

· The Boon Project Director will provide monthly programmatic reports to the U of L SGA Services Vice President for the duration of the tax filing season (January-April).

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