Involvement can range from merely hanging posters in branch lobbies informing members of the earned income credit to sending staff to VITA events and sites where eligible tax filers can open credit union accounts to deposit their credit and to actually providing staff trained as VITA tax preparers or participating in other ways at a VITA site.

There has been a lot of emphasis on participating in VITA sites in recent years as policymakers have become aware of the high rates and fees that paid tax preparation firms often charge for so-called refund anticipation loans. Accounts and similar, but less expensive, loans from credit unions have been seen as a more consumer-friendly approach to helping members get their earned income credit money, Wille explained.

One Illinois credit union that stepped up to become a VITA site is the $7 million North Side Community Credit Union in Chicago. CEO Ed Jacob acknowledged that the four months from January through April that make up the bulk of the tax season are also among the busiest and most hectic for the credit union. But, he said, helping members obtain earned income payments were among the most immediate and tangible benefits North Side could provide–although qualifying for and receiving the money is only half the battle.

"The bigger EITC challenge for credit unions is not so much getting EITC deposits but holding on to them," Jacob said. "People often have budgeted their EITC money before they receive it, and I get that, but the goal remains to try to get them to at least save back a little."

In the four years that North Side has participated in the program, the CU has helped file more than 1,900 tax returns and gotten back nearly $2.4 million in refunds for employees of its SEGs and members of the community.

The credit union uses a large conference room in its facility and available space in the building next door as a waiting area for tax filers. North Side has partnered with the Center for Economic Progress to process the returns.

They provide this service for credit union members on Mondays (when the CU is normally closed), and on Tuesday evenings for people in the community. During the height of the tax season, the conference room is at capacity. There is non-stop traffic at about 10 stations set up with credit union staff and center volunteers processing as many returns as they can on laptops.

Last year, Jacob explained, the CU offered members a high-rate, six-month CD as a place to park some of their EITC money. He said that North Side planned to continue its CD program next year but that it would also try a program first attempted in New York. North Side will use some of $10,000 it received in a grant to match members EITC deposits at 50 cents on the dollar up to $500, provided the member leaves the money in the credit union for at least six months.

The goal is to get the members to save at least some of the EITC money beyond the flush of spending enthusiasm that can accompany its arrival, he said.

Wille agreed that fully participating in the VITA program could be a real challenge for some credit unions. Further, there was a scheduling factor as well as the crunch of the next tax season rapidly approaching. But he pointed out that these sorts of programs tie in well with the league's REAL Solutions effort to launch effective programs to benefit lower income credit union members or communities.

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