NCUA News Release

FOR IMMEDIATE RELEASE

Board Member Matz Urges Credit Unions to Reach New Members -- Participate in Tax Assistance Program

Baton Rouge, La., June 18, 2003 -- National Credit Union Administration Board Member Deborah Matz, speaking to the annual convention of the Louisiana Credit Union League, advised that “Even in these uncertain economic times there are opportunities to reach new members, improve service and, above all, stay competitive. One way to increase membership is to partner with the Internal Revenue Service in offering a program called Volunteers in Tax Assistance (VITA).”

Matz explained that through the VITA program credit union facilities are used to train volunteers to prepare tax forms for individuals and families with low- to moderate-incomes. The tax forms are prepared at the credit unions free of charge to the filer. Matz indicated that one benefit of offering this service is the credit union ensures the filers receive whatever refunds they are due, including the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC).

“I was shocked to learn,” she said, “as many as 25 percent of those eligible for EITC and CTC are not even aware that they qualify. That means about $7 billion in tax credits for low- to moderate-income persons are not being claimed – that’s $7 billion left on the table – some of it rightfully belonging to your members and people in your communities, which could be used to buy food, clothes and homes from your local businesses.”

Matz advised attendees, “By participating in the VITA program credit unions are not only helping low income families but also gaining new members.” She cited the example of Alternatives Federal Credit Union, in upstate New York, which participated in the VITA program for the first time this year. They assisted in the preparation of more than 600 tax returns resulting in more than $561,000 in Federal tax refunds, over half of which was attributed to the EITC. The bonus for Alternatives -- they opened 108 new share accounts from VITA program participants.

“What a wonderful way for a credit union to help the community and also increase their membership,” Matz said. “I know that tax season is over, but now is the time to get on board with the VITA program to assist with next year’s returns. I urge you to take a careful look at this program and see if it’s right for your credit union.”

A 23-year public service veteran, Matz is a member of three credit unions and resides in McLean, Va., with her husband and two children. Before her appointment to the NCUA Board, Matz was appointed by President Clinton as Deputy Assistant Secretary for Administration in the Department of Agriculture.

The National Credit Union Administration, governed by a three-member board appointed by the President and confirmed by the Senate, is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 80 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.