Since the pandemic, Prosper Canada has focused on year-round tax filing and benefit assistance.designer491/iStockPhoto / Getty Images
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Providing professional financial advice for low-income people can greatly improve their financial well-being. In last week’s federal budget, the government announced a $60-million investment over the next five years for Prosper Canada to help this cause. Prosper Canada is a national charity dedicated to expanding economic opportunities for people with low incomes.
Globe Advisor spoke recently with Prosper Canada chief executive officer Elizabeth Mulholland about the charity’s goals and plans.
How will Prosper Canada allocate the money from the feds?
We’re delighted the federal government made this investment. For the past eight years and with support from the federal government, the Ontario government and 15 community partners, we’ve been able to pilot, on a large scale, community-delivered non-profit financial help services for people with modest incomes. We’re looking to build, on a regional basis, free financial help hubs operated by non-profit organizations that want to deliver these services. We already have them in some cities in Canada, but a lot more communities need them. We need to figure out how to extend that support into rural and remote communities. That’s a harder nut to crack.
What sort of financial services do you offer?
Since the pandemic, we’ve mainly focused on year-round tax-filing assistance and benefit assistance. We help people understand what benefits are available to them, how to apply for them, and then offer free advice on solving financial problems.
We’ve helped more than a million low- and modest-income Canadians increase their incomes by more than $1.26-billion by connecting them to income benefits and tax credits they were not receiving. It’s a big issue. One in five people with low incomes don’t file their taxes and, consequently, miss out on thousands of dollars of income every year.
Benefits missed include the HST/GST credit and the Canada Workers Benefit, for example. If they have children or are a senior, they may be eligible for other income benefits. Tax filing is also necessary to establish eligibility for provincial benefits and in-kind support. So, it’s really important people file their taxes; and after that, they often need additional help to navigate other benefits that require them to make applications.
You also mentioned you help solve people’s financial problems. What are some examples?
People may come in and say they’re being hounded by debt collectors; they can’t pay rent, they’re being evicted or are behind on utility payments. If they’re more financially stable, they might want to save some money, save for their child’s education and want more information about the Canada Learning Bond. Some people have a low credit score and want help to rebuild it. Others receive a letter from the Canada Revenue Agency they don’t understand. We see it as a very direct and powerful response to what is a structural gap.
– Deanne Gage, Globe Advisor reporter
This interview has been edited and condensed.
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– Globe Advisor Staff