Contributions progress for Msgr. Lafferty Tuition Foundation

By RENEE WEBB, Globe editor
Nov. 30, 2006

With a month or less remaining to make contributions to the Msgr. Lafferty Tuition Foundation about 80 percent of the money has been raised.

According to Diane Donnelly of the finance department, more than $566,000 has been contributed to the Msgr. Lafferty Tuition Foundation, a scholarship tuition fund, toward the goal and limit of $692,607. She mentioned that the the fund has received 399 gifts ranging from $25 to $22,000.

The Msgr. Lafferty Tuition Foundation was established as a result of legislation signed by Iowa Governor Tom Vilsack last June. The legislation, which is called the Educational Opportunities Act, allows Catholic schools to establish a scholarship tuition organization that provides huge tax advantages to donors. It allows Iowa residents with an Iowa tax liability to receive a 65 percent tax credit on contributions made to the scholarship tuition organizations.

Kevin Vickery, superintendent of diocesan Catholic schools, said he is pleased with the contributions to the fund thus far.

"I am most pleased with the fact that what we have done has been through the generosity of lots of people. It has been an effort from many people throughout the diocese," he noted. "I am also pleased that all of the schools in the diocese have received gifts towards their designations."

Each school was allowed to raise a certain designated amount of money based on their school enrollment. Money designated to a particular school will be used for assistance there as long as they have students who meet specified tuition assistance guidelines.

Now that money has been raised for the school designations, diocesan representatives hope that contributions continue to be offered for the unrestricted portion of the fund.

"The board of directors from the Msgr. Lafferty Foundation was insistent that there be funds allocated to those in most need," noted Steve Elbert, director of stewardship for the diocese. "Therefore they established the unrestricted fund for those and that 25 percent will go to the neediest population in our schools."

He encouraged anyone who is interested in participating in this gifting opportunity to do so because it offers such strong tax benefits through the tax credit coupled with the federal tax deduction (depending on one's tax situation) for the donors and the ability to have such a strong impact on families. Elbert noted that in most cases it is a matter of trading dollars as the donors in most cases get the majority of their gifts back through tax savings.

Elbert pointed out that taxes are often referred to as social capital to help government program. Through this new legislation, he said that the state of Iowa is giving Iowa taxpayers the option to trade that social capital "for something that is near and dear to our hearts - Catholic education. I would encourage anyone who has been the recipient of Catholic education or have had loved ones attend Catholic schools to continue this great gift we have in our diocese and support the foundation."

Money in the unrestricted portion of the fund will be used to assist those schools that have extraordinary needs.

"In the past we provided tuition assistance to families primarily through parish investments. The more the parishes were able to invest, the more we were able to provide tuiton relief for individual students and families," said Vickery. "This provides us a new avenue in which to provide tuition assistance. It's another investment that people are able to make, in addition to the tithing they use to support parishes which in turn support schools."

Mimi Wieck, development director at Bishop Heelan Catholic Schools, pointed out that she has hopes that with the availability of this new tuition assistance program, it will encourage families who do not utilize Catholic schools for the education of their children to take another look at the schools.

Donnelly reminded people that the window for people to receive a benefit on their 2006 tax returns through this unique gifting opportunity is fast approaching. This opportunity will seize either when all tax credits have been distributed or the year ends.

As people consider a gift to this tuition fund, Vickery encourages them to look at their past tax returns. If they have had a tax liability to the state in the past that would give them an idea as to how much they may wish to contribute to the fund. Diocesan officials always encourage individuals to contact their own tax advisers for guidance.

By mid-January the next phase will begin applications for tuition assistance through the Msgr. Lafferty Fund will be distributed.

"Just like we have educated our benefactors to the benefit of giving to the Msgr. Lafferty Fund, our next educational phase will be to educate the families that will benefit from these generous gifts to being able to access them," said Vickery.

If people are considering making a gift to the Msgr. Lafferty Tuition Foundation they are encouraged to do so as soon as possible so that they can take advantage of the tuition tax credit. For more information call the Diocese of Sioux City at (712) 255-7933.