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March & April, 2008
Newsletter
By: CFE
CFE News
ANNUAL MEETING STATISTICS!
Thank you to those who came to our Annual Meeting on February 4. We discussed statistics for the past year, voted for officers and reviewed the new budget.
Karl Kempers has agreed to continue as board president. Neil Van Schouwen, vice-president, Ron Heemstra, secretary, and Perry Borchard, treasurer, will continue in their positions also.
We took time to review the Great Misunderstanding DVD from Dave Ramsey’s Financial Peace University. This is a powerful video of the importance of giving and encourages the mission of CFE.
This past year we hired Bruce Kobza to meet clients in Orange City.
STATISTICS
SIOUX CENTER
During 2007 we saw 174 clients; 112 were new. We have 4 new payees.
We granted 7 new HOPE Loans - 10 are still paying.
Clients come from Sioux Center, Rock Valley, Rock Rapids, Sibley, Hull, Boyden, Orange City, Alton, Doon, Sheldon, Hawarden, and Maurice.
ORANGE CITY
Beginning in 2007 we had 14 clients.
Clients come from Rock Valley, Orange City, Hull, Hospers and Alton.
LE MARS
During 2007 we saw 112 clients; 48 were new.
We granted 4 HOPE Loans - 8 are still paying.
Clients come from Le Mars, Merrill, Hinton, Remsen, Akron, Sioux City, South Sioux City, Cherokee, and Omaha.
GENERAL
We currently have 167 prayer warriors.
350 individuals and organizations receive our newsletter other than clients by mail or email.
We are currently online.
Last year we received $40,661.64 in contributions from individuals. This does not include contributions from churches, grants, or other agencies.
Jan Henryson, the Director, was able to speak 20 times to different organizations about CFE and Money Management.
Claryce Schuiteman has been asked to become a member of the Lighthouse and Rock House Boards.
DAVE RAMSEY’S FINANCIAL PEACE UNIVERSITY
Last February, 2007, we offered our first FPU class at First Reformed Church in Sioux Center. It was very successful and there was a lot of interest, so we had classes in Sioux Center, LeMars and Orange City in the fall of 2007.
CHECK IT OUT! OUR NEW WEBSITE ADDRESS IS: www.cfeministries.org
Tax Appointments
We are continuing to offer tax preparation services in conjunction with the tax class students at Northwestern College. Please contact us at 722-4900 to set up an appointment.
The following times are available for you to work with a student to prepare your federal and state tax returns at the Sioux Center Library:
Monday, March 3, 7-9pm
Tuesday, March 4, 1-3pm
Monday, March 10, 7-9pm
Tuesday, March 25, 7-9pm
We also will have some appointments available on Friday afternoons, March 7 and March 14. These will be held at Northwestern College in Orange City. Call CFE directly for these appointments also.
AUTOMATE YOUR DONATIONS
We can offer our services free to clients because of your generous gifts during the entire year. We rely on each and every partner and contribution, large or small.
For your convenience, we can help you set up an automatic monthly donation if you would like to contribute regularly to this ministry.
Give us a call today at 722-4900! We appreciate your generosity! Thank you.
Don’t Pay to Borrow Your Own Money
from a National Consumer Law Center brochure
The Risks and Costs of Tax Refund Anticipation Loans
The “Tax Refund” That Really Isn’t One: It’s a Refund Anticipation Loan
How would you like to pay a super-high price to borrow money that already belongs to you? Sounds ridiculous, right? But that’s pretty much what happens to may folks at tax-time in the crazy world of RALs, or refund anticipation loans.
You may be tempted by tax-time advertisements for “Fast Cash Refunds,” “Express Money,” or “Instant Refunds.” These ads will offer to get you your refund in just a day or two, or even on the spot. Beware! Many of these “fast refunds” are really LOANS, refund anticipation loans.
When you get a RAL, you’re borrowing against your own tax refund money. And RALs are often marketed to people who need money the most low- and moderate-income workers who receive the Earned Income Tax Credit.
Don’t Pay Triple-Digit Interest Rates to Borrow Your Own Refund
RALs are extremely expensive. Loan fees typically range from $30 to $90, which translates into Annual Percentage Rates (APRs) of about 60% to over 700%. If you paid those rates on all your borrowing you’d probably go broke! And all to get your tax refund just a few days earlier than you can for free from the IRS. You’re lining someone else’s pockets with YOUR hard-earned money!
RAL fees, combined with tax preparation, electronic filing, and other fees, can end up eating away a big chunk of your refund.
RALs Can be Hazardous to Your Financial Health
In addition to their high costs, RALs can be risky. Since a RAL is a loan from a bank in partnership with a tax preparer, it must be repaid even if the IRS denies or delays your refund, or your refund is smaller than expected. If you don’t pay back the RAL, the lender will take actions to hurt your credit rating and may send your account to a debt collector. In addition, when you apply for a RAL, you are giving the lender the right to grab your tax refund to pay for old tax loan debts that the lender claims you owe.
Example:
For a tax refund of $2000, you might pay to get a RAL:
RAL loan fee: $75
Electronic filing fee: $40
Combine that with
the fee you will need
to pay to the tax
preparer: $100
Total: $215
This is over 10% of your refund!
This RAL has an APR (Annual Percentage Rate) of 142% if it beats the IRS by 10 days.
The blessing of the Lord brings wealth, and he adds no trouble to it. ~Proverbs 10:22~
Have a blessed Easter!
Remember what Christ did for you on the cross and celebrate.
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The Center for Financial Education
315 1st Ave NE - Sioux Center, IA 51250
Email: cfe@mtcnet.net
Website: www.cfeministry.org
Staff: Jan Henryson, Michelle Deinken, Bruce Kobza, Claryce Schuiteman
Board of Directors: Perry Borchard, Troy Broers, Karla Byl, Ron Heemstra, Kirk
Hulstein, Karl Kempers, Eric Rankin, Neil Van Schouwen
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