An article from the Credit Union Executives Society offers a case study of Summit Federal Credit Union’s participation in the Internal Revenue Service’s Volunteer Income Tax Assistance Program (VITA), which has assisted low to moderate income families with free tax preparation assistance.  Credit unions were allowed to participate in the VITA five years ago, and since then credit unions like Summit have used booths at VITA sites to gain new members that might not have any relationship with a financial institutions.  At the time of the article 75 new members were signed up by credit union staff at the VITA sites.  Mark Gregory, Vice President of Lending, hopes to get 700 new members as a result of their involvement in the program. 

In addition to enrolling new members, the $335 million strong Summit Federal Credit Union has also offered their own version of a refund anticipation loan, with a fee 60 dollars less than the H&R Block franchises in Rochester, NY, where the credit union is based. The loan amount ranges anywhere from $1500 to $3000, with a low 16.95 percent interest rate.  The refund loan is set up as a line of credit and applicants are encouraged to take only what they need for extreme financial situations.

In the case of Summit and in other large credit unions across the country, involvement with the VITA tax assistance sites can be a promising opportunity to partner with organizations serving low to moderate income households.  Beyond donating physical space and staff during tax season, credit unions through their involvement in VITA sites can create more long-term relationships with families seeking more financial stability by promoting membership and innovative credit union services.

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