When personal information is stripped from client returns and the remaining information is aggregated, a host organization can make at least two uses of the ensuing data. It can use the demographic and economic data to learn more about the population currently served and to improve targeting efforts in the design of future tax clinics. The host organization can also use data on the benefits and credits generated for clients to demonstrate to its various stakeholders the impact of the current CVITP service on their clients’ financial situations.
Annually, the Canada Revenue Agency (CRA) strips the personal information from returns and provides the demographic and economic data to Statistics Canada for publication. Infrequently, the CRA has also aggregated the data from returns on benefits and credits at the national and provincial levels and shared the figures publicly. Given the advent of the CVITP Organization Identification Number or COIN in 2021, it is now technically feasible for the CRA to do all this for each individual host organization as well.
There are two reasons why we believe it is in the CRA’s own interest to do this. First, by providing data to individual host organizations on the benefits and credits generated by their CVITP clinics for their clients, the CRA would be helping them to make the case to donors. Increased donor funding would alleviate a serious resource constraint for many host organizations. In turn, this could reduce some of the pressure on the CRA to provide funding while, at the same time, increase client access to CVITP services.
Second, by obtaining demographic and economic data on the clients served by its CVITP service, the host organization can learn more about the population currently benefiting from its CVITP service. Where there is a mismatch between this data and the population the host organization wishes to serve, this information can be used to help better target CVITP services in the next tax season. In turn, this could increase access to CVITP services by clients who need these the most.
In both instances, the provision of data to host organizations could help the CRA to better contribute to meeting the objectives of the federal government’s Poverty Reduction Strategy (PRS).
Quite apart from doing this to fulfill its obligation to support the government’s PRS, we believe the CRA has an obligation, as a good partner, to provide its host organizations with their data. Currently, most host organizations offer CVITP clinics with little or no support from the CRA. Providing this data would be one of the most important contributions the CRA could make to help its host organizations.
Although the CRA does not presently do this, some host organizations are collecting and analyzing client data from their CVITP clinics. However, most are not. This article explores five challenges host organizations face in doing this:
- A lack of interest or understanding within the host organization about the importance of this data
- Addressing client consent considerations
- Handling client privacy issues
- Finding staff or volunteer time to collect the data
- Finding the expertise to analyze the data
Our experience is that host organizations mandated to promote their clients’ financial empowerment are the most successful at present in addressing these challenges. As they already receive donor funding in support of this mandate, they are well positioned to tackle these challenges.
On the other hand, most host organizations providing CVITP services do not have clients’ financial empowerment as part of their core mandate. Thus, they probably do not receive donor funding specifically to support their CVITP services.
One final reflection: our article addresses the use of anonymized data found in client returns. To improve on the delivery of their CVITP services, host organizations also need to find ways to get data on non-filers within their potential client base.