The Political Action Committee of H&R BLOCK
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1 2013 ANNUAL REPORT The Political Action Committee of H&R BLOCK
2 Message from the BlockPAC Chairman Kathy Pickering Vice President, Government Relations Executive Director, The Tax Institute H&R Block The beginning of 2014 brings an active time not only does the hustle and bustle of the tax season begin, but an important election year also commences. In this election cycle, 435 members of the U.S. House of Representatives, 35 Senators, 36 Governors, as well as many state officials will face election or re-election, and many of these races have the potential to impact H&R Block. With government active on tax, banking, immigration, health care, and other issues that impact H&R Block s bottom line, an important part of our strategy for success is political involvement. H&R Block s Political Action Committee BlockPAC is one of our most effective tools for making us a key player among the many others in our nation s capital. With the critical support of our PAC members, BlockPAC continues to engage throughout this election year to help make certain that candidates who will take a favorable stand on the issues affecting the tax services industry are elected into office. I am pleased to share with you this recap of BlockPAC in 2013, which was yet another watershed year for the growth and influence of our PAC. July s Red, White & Green membership campaign was a huge success, and I d like to welcome BlockPAC s 90 new members who added their voices in 2013 to the chorus of Block associates who are making a difference. Contributions from H&R Block associates to BlockPAC for the year 2013 were greater than any of the previous 6 years. In this report, you ll see how these increased resources have empowered BlockPAC to support, educate, and visit more officials who understand our industry and who are in a position to lead on issues important to H&R Block s success. For those of you who have not yet joined BlockPAC, I cannot stress enough the need to be politically engaged during these challenging times. Please consider investing in the future of our company by joining BlockPAC today. Visit our website ( for more information and to join our PAC. Sincerely, Kathy Contributions to BlockPAC are not tax deductible for federal income tax purposes. All contributions are voluntary and you may refuse to contribute without reprisal. You will not be favored or disadvantaged by reason of the amount of your contribution or your decision not to contribute. Contributions to BlockPAC are used for political purposes. Federal law requires political committees to report the name, mailing address, occupation, and employer for individuals whose contributions exceed $200 in a calendar year. BlockPAC may not accept contributions from foreign nationals.
3 The Political Action Committee of H&R BLOCK 4 SUPPORTING PRO-BLOCK CANDIDATES 5 RED, WHITE, AND GREEN FUNDRAISING CAMPAIGN RESULTS 6 HOMETOWN REPS. EMANUEL CLEAVER (D-MO) AND KEVIN YODER (R-KS) VISIT CSC, MEET BLOCKPAC MEMBERS 8 BILL COBB BRINGS BLOCK S MESSAGE TO NATIONAL, STATE CAPITALS 9 REP. PAT TIBERI (R-OH) VISITS H&R BLOCK IN OHIO 10 BlockPAC BOARD OF DIRECTORS AND CONTACT INFORMATION
4 SUPPORTING PRO-BLOCK CANDIDATES Supporting Pro-Block Candidates Every dollar contributed to BlockPAC supports candidates for office who support our business, regardless of their political party affiliation. The year 2013 was an off election year cycle, as under normal circumstances candidates for U.S. House and Senate face elections during even numbered years. One special election occurred in Missouri s 8th congressional district in June to replace long-time Rep. Jo Ann Emerson who retired. With the help of BlockPAC s contribution, Congressman Jason Smith won the special election. Even though most candidates were not up for election in 2013, many continued to fundraise for their upcoming 2014 campaigns. Throughout the year, BlockPAC contributed to the election of candidates who share our values of keeping the tax services industry strong, while sending a strong message on policy issues that impact Block. For the 2013, 2014, 2016, and 2018 election cycles, BlockPAC has invested a total of $67,000 to help elect over 20 key candidates. BlockPAC s focus is truly bipartisan. 50% of these dollars have gone to Democrats and 50% to Republicans. When choosing to make a contribution to a candidate, the BlockPAC Board of Directors considers the candidate s position on issues that impact us such as tax administration policy and financial services, membership on committees responsible for these issues, and the presence of H&R Block associates in the candidate s state or district. Contributions to Candidates for Election Cycles Democrat Republican $33,500 $33,500 50% 50% U.S. HOUSE John Boehner (R-OH), Charles Boustany (R-LA), Dave Camp (R-MI), Emanuel Cleaver (D-MO), Sam Graves (R-MO), Vicky Hartzler (R-MO), Steny Hoyer (D-MD), Lynn Jenkins (R-KS), Richard Neal (D-MA), Tom Price (R-GA), Jason Smith (R-MO), Kevin Yoder (R-KS) U.S. SENATE Max Baucus (D-MT), Roy Blunt (R-MO), Mike Crapo (R-LA), Tim Johnson (D-SD), Claire McCaskill (D-MO), Mitch McConnell, (R-KY), Jerry Moran (R-KS), Pat Roberts (R-KS), Charles Schumer (D-NY), Richard Shelby (R-AL), Ron Wyden (D-OR) OTHER Attorney General Jack Conway (D-KY) Attorney General Tom Miller (D-IA) 2013 ANNUAL REPORT - 4 -
5 FU N D R AISING C AM PAIGN R ESULTS Red, White, and Green Fundraising Campaign Results BlockPAC in 2013 conducted the first company-wide solicitation campaign in several years, with tremendous results for the growth of the PAC and our influence in Washington, DC. During the patriotic month of July, all eligible H&R Block associates were given an opportunity to go Red, White, and Green by joining BlockPAC using the new PAC website. A total of 90 new BlockPAC members joined our ranks during July s membership campaign a fantastic response that really makes our voice louder in government. One lucky new member, Franchise Support Manager Ronda Barker, won the drawing for an ipad 4. CEO Bill Cobb and President of U.S. Retail Operations Kip Knight personally presented Ronda with the prize. Congratulations Ronda! As a result of so many H&R Block associates standing up and contributing to the PAC, BlockPAC receipts for 2013 reached a 6 year high of nearly $59,000. Following several years of company turnover and reorganization that negatively impacted BlockPAC, our PAC has turned a corner and we look forward to its continued growth to better face the challenges ahead. With laws and regulations continuing to impact H&R Block s bottom line, with an important 2014 election cycle coming up, and with Intuit s PAC out-raising BlockPAC in the previous 2012 election cycle, a strong BlockPAC is critical. BlockPAC Receipts By Year $60,000 $58,988 $50,000 $40,000 $44,257 $40,681 $30,000 $38,353 $22,879 $20,000 $10, ANNUAL REPORT Election Cycle ( ) Election Cycle ( )
6 CONGRESS COMES TO CSC Hometown Reps. Emanuel Cleaver (D-MO) and Kevin Yoder (R-KS) Meet BlockPAC Members, Visit CSC The Government Relations team at H&R Block is always looking for opportunities to engage in constructive dialogue with our elected officials to help them better understand our business. In partnership with BlockPAC and the Block Brigade, a grassroots group of associates, the team hosts officials at H&R Block tax offices and other facilities to: Interact with associates Listen to H&R Block s point of view on policy issues impacting our company and clients Inform us of tax-related developments in national and state capitals In April, H&R Block Government Relations invited two U.S. congressmen Rep. Emanuel Cleaver II, (D-MO), and Rep. Kevin Yoder (R-KS) to visit CSC. In addition to representing many Kansas City area associates in Congress, both congressmen serve on congressional committees in charge of policy issues that impact our business: Rep. Cleaver serves on the House Financial Services Committee, with jurisdiction over economic issues including the banking system. Rep. Yoder serves on the House Appropriations Committee, including the subcommittee that oversees the IRS budget. During their visit, BlockPAC members were treated to a special opportunity to personally meet these two members of Congress whose 2012 re-elections were supported by BlockPAC contributions. The BlockPAC member Meet & Greet was enjoyed by all and was a unique opportunity for PAC members to get to know these Kansas City area U.S. Representatives. As important allies for our company and representatives of many Block associates, BlockPAC is pleased to contribute toward both congressmen s campaigns in Afterwards, Reps. Cleaver and Yoder participated in a Coffee With the Congressmen townhall meeting with H&R Block associates in the H&R Block Theater. U.S. Rep. Emanuel Cleaver II, Kathy Pickering, VP-GR, President & CEO Bill Cobb and U.S. Rep. Kevin Yoder Though they come from different backgrounds, different parties, and don t always agree on the issues, what s remarkable about these two gentlemen is their civility towards others in public life, said CEO Bill Cobb, who introduced the congressmen to the audience. Washington, D.C., would be a much better place if our elected officials would stop their name calling, and instead have a respectful conversation. Their desire to stand on the same stage today and talk about the important issues facing our country sets an example we can all learn from ANNUAL REPORT - 6 -
7 CONGRESS COMES TO CSC Cleaver and Yoder took turns discussing issues relevant to H&R Block, as well as answering questions from the audience. Topics included: Comprehensive tax reform proposals Federal budget debates The impact of the Dodd-Frank Financial Regulatory Reform bill on the H&R Block Bank Unemployment challenges The need for Congress to work together to tackle our country s problems Said Jeremy Stohs, Deputy Director Government Relations, who helped coordinate the event: By personally visiting our headquarters, meeting our associates, and engaging in a conversation, Congressmen Cleaver and Yoder walked away with a better understanding of our business, our values, and our views, which can help them make informed decisions back in Washington. Good, open dialogue and back-and-forth with our Rep. Emanuel Cleaver II speaks to Block associates at the representatives helps keep H&R Block in the loop April 30, 2013 Coffee With the Congressmen event and part of the discussion on legislation that can impact our associates, our franchisees, our shareholders, and our clients. Today s Congressional visit not only enabled our associates to be more informed, it also strengthened our relationship with these two members of Congress, said Kathy Pickering, Vice President Government Relations. BlockPAC members visit with Congressmen Emanuel Cleaver II and Kevin Yoder at CSC 2013 ANNUAL REPORT - 7 -
8 BRINGING BLOCK S MESSAGE TO THE CAPITALS Bill Cobb Brings Block s Message to National, State Capitals In 2013, H&R Block President and CEO Bill Cobb worked to successfully highlight our company to elected officials at the state and federal levels, several of whose election campaigns are supported by BlockPAC contributions. Bill traveled to Washington, DC in February for several key meetings to voice our point of view, raise questions and concerns, and build strong relationships with federal leaders in areas important to the future of Block. His trip was a big success. Bill and the Block team met with then-acting IRS Commissioner Steve Miller to update the IRS on the tax season and discuss some trends and concerns. He also met with Health and Human Services Secretary Kathleen Sebelius to discuss our efforts to educate our clients on the implementation of the Affordable Care Act. Bill also met with a number of Members of Congress. He met with three members of the House Ways and Means Committee, which has jurisdiction over the IRS and tax reform. Bill met with Committee Chairman Dave Camp (R-MI), Rep. Pat Tiberi (R-OH), Chairman of the Subcommittee on Select Bill Cobb with Rep. Tom Price (R-GA) Revenue, and Rep. Kevin Brady (R-TX), Chairman of the Subcommittee on Health. The team also had a great visit with Rep. Tom Price (R-GA), who is also a member of the House Ways and Means Committee. Bill invited Rep. Tiberi to visit our Dublin, OH e-file center, which is in the congressman s district. Bill was joined by Kathy Pickering, Vice President Government Relations; Marie van Luling, Chief Communications Officer; Theresa Pattara, Director of Tax Policy The Tax Institute; and from our Washington office, Brian Hart, Director Government Relations. In the fall, Bill also took our message to the states by engaging with the two governors representing the Kansas City area, home to many Block associates and franchisees. Bill visited with Governor Jay Nixon (D) of Missouri in September and Governor Sam Brownback (R) of Kansas in November. Both meetings centered around H&R Block s values, successes, future opportunities, and how we facilitate tax administration in the respective states. These discussions were great opportunities for our company s voice to be heard on state issues important to Block s future and to build strong relationships with the two governors. MO Governor Jay Nixon KS Governor Sam Brownback 2013 ANNUAL REPORT - 8 -
9 REPRESENTATIVE VISITS H&R BLOCK IN OHIO Rep. Pat Tiberi (R-OH) Visits H&R Block in Ohio Do you like politics with your pizza? H&R Block associates got plenty of both in April when U.S. Rep. Pat Tiberi (R-OH): Toured H&R Block s e-file center in Dublin, Ohio Chowed down on pizza with associates Delivered a Town Hall covering the fiscal cliff, tax reform, local issues and more Congressman Tiberi was impressed that millions of electronic returns from H&R Block clients pass through the Dublin facility every year, says Brian Hart, Director Government Relations, who attended the event with Kathy Pickering, Vice President Government Relations, and Craig McCurdy, Vice President Enterprise Technology. Rep. Tiberi was also impressed by the professionalism and technical skill of our associates, says Hart, and is now keenly aware of the critical role that the Dublin facility plays in serving taxpayers. COMMON GROUND Of course, serving taxpayers is a mutual concern. Tiberi is a member of the House Ways and Means Committee, where he influences tax policy as chairman of the subcommittee on Select Revenue Measures. And the Dublin facility processes all e-filed tax returns and bank products completed by H&R Block. Our e-file team ensures that H&R Block prepared tax returns and banking products are filed and processed in a timely fashion, says Lori Beasley, Director Technology, at the Dublin facility. We appreciated the opportunity to show the congressman what we do. Specifically, the Dublin team which includes as many as 80 full-time and seasonal associates: E-files tax returns from all H&R Block tax offices and digital products to the IRS and 42 state departments of revenue, plus processes responses from those taxing authorities Processes all banking transactions with H&R Block bank partners Sends tax return and bank status messaging to clients Provides operational reporting for tax offices CONSISTENT CLIENT SERVICE After this visit to the Dublin facility and after recently sitting down with CEO Bill Cobb in Washington, Rep. Tiberi now has a very good sense of H&R Block s concerns and viewpoint on a wide range of policy issues, says Hart. However, the congressman was already familiar with H&R Block s consistent client service. Kathy Pickering, VP GR, Congressman Pat Tiberi and Lori Beasley, Director Technology It turns out that an H&R Block tax professional in Ohio has prepared taxes for the Congressman s extended family for decades, says Hart. When a relative recently passed away, the tax professional was very helpful to the Tiberi family as they sorted through various tax issues. He was happy to share that story with the H&R Block team and very much appreciated their excellent service ANNUAL REPORT - 9 -
10 BlockPAC BOARD OF DIRECTORS AND CONTACT INFORMATION BlockPAC Board of Directors A big thank you to our 2013 Board of Directors for their hard work and leadership in ensuring BlockPAC s growth and success. The Board of Directors is comprised of representatives from across H&R Block who meet regularly and administer the PAC, including deciding which candidates for office receive PAC contributions. We would especially like to thank Amy McAnarney, former President Retail Client Services, for her support and service on the Board these past two years. Tom Gerke, Chief Legal Officer Greg Quarles, President Financial Services Jim Stowell, Franchisee & Franchise Leadership Council member Chairman Kathy Pickering, VP Government Relations & Executive Director The Tax Institute Treasurer Brian Hart, Director Government Relations Secretary Jeremy Stohs, Deputy Director Government Relations BlockPAC Contact Info Kathy Pickering VP Government Relations & Executive Director The Tax Institute kpickering@hrblock.com Brian Hart Director Government Relations brian.hart@hrblock.com Andrew Jennison Deputy Director Government Relations andrew.jennison@hrblock.com Jeremy Stohs Deputy Director Government Relations jeremy.stohs@hrblock.com Margaret McGinty Government Relations Manager margaret.mcginty@hrblock.com Tina Mulkey Office & Compliance Manager tina.mulkey@hrblock.com ANNUAL REPORT
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