When you hear the term “community economic development,” what comes to mind? Perhaps you see a new affordable housing development in your neighborhood, or think of your Downtown Development Authority marketing a new small business along your town’s main street. What you might not picture, however, is the individual these community economic development efforts support. 

Grand Rapids-based CEDAM member The SOURCE is making the connection between community members who are working to become financially stable and the local economies in which they desire to participate and work. 

The challenge

When community members lack the financial stability or practical means to participate in the local economy, development alone cannot meaningfully impact the community’s overall health. When residents are one car breakdown away from a financial emergency, their ability to stay on top of monthly expenses, like rent, groceries, and utility bills, can bring significant stress. These personal strains can create a devastating cycle where workplace turnover surges, local economic drain repeats, and individuals struggle to get ahead. The SOURCE works to change that.

Free tax preparation grows communities

The SOURCE’s mission is to bring “together the people, systems, and supports required to stabilize households and strengthen our community by eliminating systemic barriers to employment.” One of their keystone initiatives is their free tax preparation service, which they have been providing to the Grand Rapids community for more than 20 years. 

From the second someone comes to The SOURCE for no-cost tax assistance, dollars begin flowing back into the community. Their team helps clients access critical tax credits, like the Earned Income Tax Credit and the Child Tax Credit, which have well-documented impacts on the individuals, their households, and the communities they live in, including improvements in health, education, and workforce participation. And when clients don’t have to spend $200 to file a tax return, that money can instead cover essential needs, like groceries or fuel. The refunds people receive multiply that impact many times over.

“The [refunds] that people who are coming to our tax site receive, we know go back into the local community,” said Alison Freas, executive director of The SOURCE. “We’ve literally heard people say things like, ‘I’m going to go have this health procedure that I’ve been putting off,’ so that’s going to go into one of our local health systems. Or I’m going to go buy my kid a new pair of winter boots, or a winter coat, or I’m going to do this home repair. So we know that money gets pumped right back into the local community here.” 

Although they have been doing this work for more than two decades, they became a standalone Volunteer Income Tax Assistance (VITA) site thanks to the CEDAM-administered, State-funded Michigan Free Tax Preparation Expansion and Sustainability Grant they received last year. They credit the more than 1,200 returns they filed last filing season to their volunteers and the high level of service they provide. The SOURCE is composed of community members coming together to help each other, ensuring they have the support they need.

Holistic support

The SOURCE’s no-cost tax preparation service isn’t a random add-on, but a natural extension of their work. Personal finance is the common thread that weaves all their support and services together, and their tax preparation is often the gateway for clients to learn about all they do. They build relationships with their tax prep clients and encourage them to return for other services. These wraparound services are the epitome of The SOURCE. 

“Even though I’m not a Resource Navigator, if I’m working with somebody and I hear different struggles, I immediately can schedule an appointment [for them] with the Resource Navigator,” explained Erika Gonzalez, managing director. 

Through its innovative shared-services model, The SOURCE bridges the divide between business productivity and worker well-being. Rather than simply providing a list of phone numbers for workers to call and figure it out themselves, The SOURCE has dedicated Resource Navigators to help clients navigate challenges, whether it be transportation, food insecurity, taxes, and everything in between. They provide one-on-one coaching, direct resource connections, and the mental breathing room needed to regain personal and professional stability.

“We were born out of this idea that employers could come together and pool resources and…help [employees] navigate challenges in their lives,” said Alison. “By helping those individuals, it helps them to keep their job, which is good for the business and good for the individual.”

Today, about 30-35% of the individuals The SOURCE serves rely on state assistance, and helping clients navigate the related challenges they encounter strengthens both the community and local businesses. Many of the people they support are entry-level employees at The SOURCE member organizations; these employees are often working within limited budgets that can lead to difficult decisions, affecting their financial stability and, ultimately, employment. High turnover makes it hard for businesses to think about expansion or job creation.

As Allison explains, “If we can get in and help provide [businesses] that level of stability so they’re not constantly hiring for the same role every couple of weeks, they then actually have their own breathing room and mental capacity to think about growing the business. That then adds more jobs in the community.” 

Life is messy, support doesn’t have to be

After starting with a staff of five that slowly grew to eight, The SOURCE experienced rapid growth over the last few years and now has more than 20 staff members. Their focus this past year has been bringing their support to other areas of the state. Earlier this year, they expanded their offerings to Southeast Michigan in partnership with Corewell Health.

The SOURCE lives by the phrase “Supporting employees both at work and at home.” In practice, their free tax preparation and other services directly put money back into the local economy, creating a ripple effect across the community for both individuals and businesses.

“Work life and home life are fluid, right? You don’t just magically leave one when you enter into the next place,” said Alison. “We can stand in that gap and support people. Sometimes it’s directly connecting them to a resource, and then sometimes it’s just being a coach or a thought partner in helping them think through a situation with a supervisor.”

To learn more about The SOURCE, visit www.thesourcemi.org