School Tuition Organization of SOUTHEAST IOWA

A School Tuition Organization (STO) is a Section 501(c)3 charitable organization created to receive cash contributions from individual Iowa taxpayers, and then allocate those funds to eligible families who attend accredited non-public schools represented by the School Tuition Organization.  Taxpayers who contribute to a STO will receive a tax credit on their Iowa income tax returns equal to 65% of the donation.  The contribution is also eligible for a federal tax deduction as well. At least 90% of the money received by the STO must go to eligible families.  Families are eligible if their adjusted gross income (line 22 of the Federal Tax Form 1040) does not exceed an amount equal to three times the federal poverty guideline for their family size.

The name of the School Tuition Organization (STO) serving all of the schools of the Diocese of Davenport, except Scott County, is the School Tuition Organization of Southeast Iowa.  This STO serves nine Catholic school systems in the Davenport Diocese representing more than 2,500 K-12 grade students.

The School Tuition Organization of Southeast Iowa is incorporated under the laws of the State of Iowa.  Contributions to the STO are tax deductible as provided by law.

Voting members are:  Robert Bolton of Muscatine; Nancy Peart & Steve Roling of Clinton; Ann Rhodes, April Rouner and Gary Schmit of Iowa City; Joe Schilling of Burlington; Dan Kieler of West Point; and Terri Schofield of Ottumwa.  Non-Voting members are:  Char Maaske of Dewitt and Mary Wieser of Davenport.

Yes.  Programs have been approved in Arizona, Florida, Pennsylvania, and Rhode Island.

No.  The tuition tax credit program is completely separate from donations to the School Tuition Organization of Southeast Iowa.

The Iowa law requires that at least 90% of all donations be distributed as grants to qualifying families by the calendar year following the year of the receipt of the gift.  The STO may use up to 10% of its donations for expenses and administration of the program.

The STO of Southeast Iowa has been authorized, by the Iowa Department of Revenue, to issue up to $773,085 in tax credits in 2009 based upon the total number of students enrolled in its member schools.

Statewide, the eleven School Tuition Organizations established in Iowa may issue tax credits equaling $7.5 million in 2009.

Any individual Iowa taxpayer can contribute to the fund and is then eligible for the tax credit.

To ensure compliance with the Iowa law, an annual review of the receipts and grant distributions will take place by a certified public accountant.

Yes.  The current plan is to provide an annual report listing how the money was distributed in the Davenport Diocese newspaper, the Catholic Messenger.

Yes.  It is possible for a donor to designate his/her gift to one or more schools represented by the School Tuition Organization of Southeast Iowa.  It is important to note, however, that once the needs of the families attending that school have been met, any unused designated donations for that school will be made available to other needy families to attend other schools served by the School Tuition Organization of Southeast Iowa where the local need has not been met.  For example, if there are restricted gifts totaling $100,000 to School A, and the families who need scholarships at School A are eligible for a total of $75,000, the $25,000 of unused designated gifts will then be made available to other eligible families in the School Tuition Organization of Southeast Iowa.

No.  Gifts of all sizes are welcome.

The law requires that all tax credits will be equal to 65% of the gift received for the tax year in which the gift is received.  The School Tuition Organization of Southeast Iowa can give tax credit certificates equal to $773,085 for 2009, which is based upon the total student enrollment of the School Tuition Organization of Southeast Iowa.

Answers to these questions can be found here.

That decision will be made by each individual school.

No.  There will be no additional funds available for an appeals process with the School Tuition Organization of Southeast Iowa.  However, each school may develop local protocols, funded locally, to support an appeal process.

Every effort will be made to make applications available early February 2010.  Deadline for the applications will be approximately April 15, 2010, with award letters being sent May 2010.

Steve Roling, executive director, at steve@roling.net or (563)244-1040.