School Tuition Organization
of SOUTHEAST IOWA

A school tuition organization (STO) is a Section 501(c)(3) charitable organization created to receive contributions from Iowa taxpayers in exchange for a 65% Iowa income tax credit. STO contributions are allocated (in the form of tuition grants) to eligible students who attend any of the accredited nonpublic schools represented by a given STO.

The STO of Southeast Iowa serves all of the Catholic schools within the Diocese of Davenport except those within Scott County. We serve a total of nine schools and represent over 2,200 students.

An STO contribution earns the donor a credit against his/her Iowa income tax equal to 65% of the amount contributed. In addition, the donor may claim a charitable contribution deduction for federal tax purposes if he/she itemizes deductions.

At least 90% of all money received by an STO must go to eligible students in the form of tuition grants. Historically, the STO of Southeast Iowa has paid out over 96% of its income to qualified students.

Qualifying individuals are those K-12 students who live in an Iowa household the total income of which does not exceed an amount equal to three times the federal poverty guideline.

Our current board of directors is shown here.

Yes. Similar programs have been established in Arizona, Florida, Pennsylvania, and Rhode Island.

The tuition tax credit and the STO tax credit are separate Iowa credits. Both of these credits may be claimed on the same Iowa tax return.

There are currently 12 Iowa STOs, representing over 33,500 students. These 12 STOs have been authorized by the Iowa Department of Revenue to issue tax credits totaling $8,750,000 in 2012.

The STO of Southeast Iowa has been authorized to issue tax credits totaling $590,976 in 2012. This means that we are allowed to receive qualifying contributions of $909,194 in 2012.

Any taxpayer can contribute to the STO. However, only individuals (and certain corporations) that pay Iowa income tax are eligible for the STO credit.

Yes. The STO's annual financial statement, which is reviewed by an independent CPA firm, is available upon request.

Yes. Subject to limitations imposed by the State of Iowa, a donor may restrict his/her gift to one or more schools represented by the STO of Southeast Iowa. However, once the needs of the students in a given school have been met, that school's unused restricted contributions may be reallocated to help meet the needs of students in the other schools we serve.

No. Gifts of all sizes are welcome. Donors of large gifts are advised to check with a tax professional to make sure that any STO tax credits issued can actually be utilized by the donor.

All families who wish to be considered for a grant from the STO of Southeast Iowa must complete and submit a confidential financial aid application.

The deadline for 2012-2013 applications is April 16, 2012. Families who wish to receive an STO grant must also complete and file their 2011 federal income tax return by this date because a copy of the first two pages of that return must be submitted with the application. Taxpayers who file late or receive an extension of time to file their tax return will not be eligible to receive STO funds, but they should still file a financial aid application if other financial assistance is requested.

No. There are no additional STO funds available for appeals. Many of the schools we serve also offer other forms of financial assistance. Families needing assistance beyond what the STO can provide are encouraged to check with their school's financial aid or business office.

Contact the Executive Director of the STO of Southeast Iowa, Steve Roling, at (563) 391-1845 or steve@bistatetax.net.