RICHMOND, Va., Sept. 12 /PRNewswire/ -- A new coalition, convened by
the Federal Reserve Bank of Richmond's Community Affairs Office, debuted
today during the 2006 Housing and Community Economic Development Summit in
Charleston, South Carolina. The South Carolina Asset Development
Collaborative (SCADC) seeks to improve the future economic potential of
working poor families in South Carolina by helping to develop and implement
asset building policies and programs and raise the awareness of economic
and educational opportunities already available to the working poor.
SCADC unites the South Carolina Association of Community Development
Corporations, the South Carolina Commission for Minority Affairs, the South
Carolina Consumer Affairs Department, Benedict College, Carolina First Bank
and Bank of America. Two national organizations, the Corporation for
Enterprise Development (CFED) and Center for Social Development provided
the collaborative with local data.
A variety of statistics led to the Fed's involvement and facilitation
of SCADC. A study of assets and wealth-building opportunities by CFED, a
nonprofit that tracks economic opportunities for low-income people
nationwide, ranks South Carolina 44th in the country in households with
checking accounts and 43rd in poverty by gender.
"Strong coalitions among our local and state governments and our
private sector partners are key elements in helping to raise the standard
of living of our lower income taxpayers," said Joyce Robbins of the IRS.
"These groups provide the knowledge, assets and, more importantly, the
manpower needed to make a difference in our South Carolina communities."
The most recent data from the Internal Revenue Service's Earned Income
Tax Credit Program (EITC) program showed that in 2002 more than $132
million available to South Carolina's working poor families went unclaimed.
EITC provides a refundable tax credit that supplements the wages of working
poor families by offsetting their income tax liability. If the credit
exceeds the amount of income taxes owed, the taxpayer is given a lump sum
payment or tax refund for the difference. The tax credit is worth up to
$4,400 for a working family with two or more children.
"Not only does the EITC lift more children out of poverty than any
other program, it also accomplishes this by rewarding work over welfare,"
said Dr. Lucy Gorham, who runs EITC Carolinas. "The next step is to link
families to opportunities to build assets so that they and their children
can build a more secure financial future."
SCADC plans to launch an awareness campaign to inform taxpayers of
their eligibility for tax credits. For more information, contact the SCADC
at 843-579-9855.
The Fifth Federal Reserve District includes the District of Columbia,
Maryland, North Carolina, South Carolina, Virginia, and most of West
Virginia. The Community Affairs Office's mission is to supports the Federal
Reserve System's economic growth objectives by promoting community
development and fair and impartial access to credit.
SOURCE Federal Reserve Bank of Richmond
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Related links:
http://www.richmondfed.org
CONTACT:
Dan Tatar or Angelyque Campbell, Community
Affairs of the Federal Reserve Bank of Richmond, +1-804-697-8913
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