Diocese creates tuition foundation
Posted: Monday, September 18, 2006
The Sioux City Diocese has established the Monsignor Lafferty Tuition Foundation so donors to Catholic schools may take advantage of tax advantages provided by the Educational Opportunities Act enacted earlier this year in Iowa.
The foundation, honoring the late Msgr. James K. Lafferty, will assist schools in the diocese in providing financial assistance for those families who are defined as having eligible students by the Iowa code, said Kevin Vickery, diocesan superintendent of Catholic schools, .
This year scholarship tuition organizations in the state are allowed to raise $2.5 million. The diocesan share is $690,609.
"This legislation allows Iowa taxpayers in all brackets who make a gift through the Monsignor Lafferty Tuition Foundation to receive a 65 percent tax credit and benefit Catholic education in our diocese," noted Steve Elbert, diocesan director of development.
The development director pointed out that depending on a person's state and federal tax situation, nearly 100 percent of their 2006 gift may come back to that taxpayer which they could use as another gift in 2007.
Prior to this new act, in a best-case scenario, the largest tax benefit would have been about 33 percent. Now, they can receive the 65 percent tax credit and potentially up to another 33 percent deduction.
Vickery mentioned that presently diocesan officials are teaming up with school administrators and development directors to raise the $690,000-plus.
Because those who contribute to this foundation will receive such strong tax benefits, the diocese is limiting the maximum gift to $1,000 per donor with no limitations as to minimum gifts.
The diocesan superintendent noted that the $1,000 cap on individual gifts would be removed after Nov. 1 if the $690,000 has not been raised. He added the Iowa tax credit is different than a refund. The donor must have an Iowa tax liability to benefit from the program.
Each Catholic school will be given the opportunity to raise a specific amount of funds based on student enrollment. For instance, Bishop Garrigan in Algona can raise $53,821 and Sacred Heart Grade School in Spencer $14,323. Seventy-five percent of the money raised by a school will be used to assist students in their school as long as requirements for eligibility are met.
"There is a 25 percent unrestricted fund, so there will be some funds available to use in the neediest places of the diocese," explained the diocesan superintendent.
Members of the Monsignor Lafferty Tuition Foundation include Bishop R. Walker Nickless; Msgr. Michael Sernett; Ron Olberding and Robin Barber, both of Spencer; Sister Delores Hannon of Fort Dodge; Jim Auen and Matt Greteman, both of Carroll; Gilbert Buscher of Algona; Sherry Nilles of Granville, Gary Tillman of Le Mars, Sue Fitzpatrick of Storm Lake, and the Rev. Gerald Feierfeil, the Rev. Merlin Schrad, Kevin Vickery, Sister Ruth Schock and Kris Brown, all of Sioux City.
In January, after the money has been raised, the foundation board will establish an application process. A third-party provider, Financial Aid Independent Review, will be used for the provision of soliciting applications, analysis of financial need and recommendation of financial aid awards for students and families.
"To be an eligible student means that you must be within 300 percent of the Federal Poverty Level," noted Vickery. A family of six would be eligible to apply for tuition assistance if the family's income was below $80,400.
"Plus, if this money is used to help the bottom-tier of the economic group, it would free up dollars that we were already spending for financial aid in the local schools to be used for the middle income families," Vickery added.
These funds will be used to assist students with tuition for the 2007-2008 school year. Next year, scholarship tuition organizations in the state will be allowed to receive $5 million in tax credits. The diocesan share would be about $1.4 million.
To make a donation, call Mimi Wieck, development director, Bishop Heelan Catholic Schools, at 252-1350 or mail a contribution directly to the Monsignor Lafferty Tuition Foundation.
The foundation, honoring the late Msgr. James K. Lafferty, will assist schools in the diocese in providing financial assistance for those families who are defined as having eligible students by the Iowa code, said Kevin Vickery, diocesan superintendent of Catholic schools, .
This year scholarship tuition organizations in the state are allowed to raise $2.5 million. The diocesan share is $690,609.
"This legislation allows Iowa taxpayers in all brackets who make a gift through the Monsignor Lafferty Tuition Foundation to receive a 65 percent tax credit and benefit Catholic education in our diocese," noted Steve Elbert, diocesan director of development.
The development director pointed out that depending on a person's state and federal tax situation, nearly 100 percent of their 2006 gift may come back to that taxpayer which they could use as another gift in 2007.
Prior to this new act, in a best-case scenario, the largest tax benefit would have been about 33 percent. Now, they can receive the 65 percent tax credit and potentially up to another 33 percent deduction.
Vickery mentioned that presently diocesan officials are teaming up with school administrators and development directors to raise the $690,000-plus.
Because those who contribute to this foundation will receive such strong tax benefits, the diocese is limiting the maximum gift to $1,000 per donor with no limitations as to minimum gifts.
The diocesan superintendent noted that the $1,000 cap on individual gifts would be removed after Nov. 1 if the $690,000 has not been raised. He added the Iowa tax credit is different than a refund. The donor must have an Iowa tax liability to benefit from the program.
Each Catholic school will be given the opportunity to raise a specific amount of funds based on student enrollment. For instance, Bishop Garrigan in Algona can raise $53,821 and Sacred Heart Grade School in Spencer $14,323. Seventy-five percent of the money raised by a school will be used to assist students in their school as long as requirements for eligibility are met.
"There is a 25 percent unrestricted fund, so there will be some funds available to use in the neediest places of the diocese," explained the diocesan superintendent.
Members of the Monsignor Lafferty Tuition Foundation include Bishop R. Walker Nickless; Msgr. Michael Sernett; Ron Olberding and Robin Barber, both of Spencer; Sister Delores Hannon of Fort Dodge; Jim Auen and Matt Greteman, both of Carroll; Gilbert Buscher of Algona; Sherry Nilles of Granville, Gary Tillman of Le Mars, Sue Fitzpatrick of Storm Lake, and the Rev. Gerald Feierfeil, the Rev. Merlin Schrad, Kevin Vickery, Sister Ruth Schock and Kris Brown, all of Sioux City.
In January, after the money has been raised, the foundation board will establish an application process. A third-party provider, Financial Aid Independent Review, will be used for the provision of soliciting applications, analysis of financial need and recommendation of financial aid awards for students and families.
"To be an eligible student means that you must be within 300 percent of the Federal Poverty Level," noted Vickery. A family of six would be eligible to apply for tuition assistance if the family's income was below $80,400.
"Plus, if this money is used to help the bottom-tier of the economic group, it would free up dollars that we were already spending for financial aid in the local schools to be used for the middle income families," Vickery added.
These funds will be used to assist students with tuition for the 2007-2008 school year. Next year, scholarship tuition organizations in the state will be allowed to receive $5 million in tax credits. The diocesan share would be about $1.4 million.
To make a donation, call Mimi Wieck, development director, Bishop Heelan Catholic Schools, at 252-1350 or mail a contribution directly to the Monsignor Lafferty Tuition Foundation.
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