MORE THAN 390 CONTRIBUTORS: Donors and development directors praise Msgr. Lafferty Tuition Foundation

By RENEE WEBB, Globe editor
Jan. 25, 2007

Over 390 individuals contributed to the Msgr. Lafferty Tuition Foundation, a scholarship tuition organization that provided huge tax benefits to contributors.

Thanks to the Educational Opportunities Act that was signed into law last summer, scholarship tuition organizations in the state were allowed to provide $2.5 million in tax credits by the year's end in 2006. The diocese was allowed to raise $690,000, to provide about $450,000 in tax credits. Those who contributed to the organizations received a 65 percent state tax credit as long as they had a state tax liability.

Development directors from the Diocese of Sioux City and people who contributed to the fund called the gifting opportunity a win-win situation because it will provide tuition assistance to every Catholic school in the diocese for the 2007-2008 school year and offered substantial tax savings to those who gave to the foundation.

"Our people stepped to the plate and we are very grateful," said Steve Elbert, director of development for the Diocese of Sioux City.

Betty Ann Schmitz, development director at Sacred Heart School in Boone, pointed out that donors were very receptive to this program.

"What was exciting for the people that made donations to Sacred Heart in Boone was the fact that they could help the people here with tuition, but at the same time they received a tax credit," she said.

Some of the donors, Schmitz noted, were able to give more because of the tax credit and it attracted new contributors to the school.

Terry Branstad, former Governor of Iowa who now resides in the Boone area, contributed to the fund.

"I think the Msgr. Lafferty Tuition Foundation approach that the diocese put together is very good because it gives more people a chance to participate," he said.

Steve Elbert gave credit to the board for the Msgr. Lafferty Tuition Foundation for making it accessible to so many donors. They wanted many people to have a chance to receive tax credits rather than offering the tax savings to just a few.

Schmitz noted that other donors also expressed appreciation that the Sioux City Diocese had the forethought to make it available to so many people through the $1,000 donation cap that existed in the initial months of the fundraising effort. That cap was removed Nov. 1.

Branstad pointed out that the financial sacrifice made by families to send their children to Catholic schools has become greater and greater as the cost of education goes up. Many people, he noted, like himself, saw this as a great opportunity to help others afford to send their children to Catholic schools in the Sioux City Diocese.

"When I was governor, we started the tuition tax credit which helps people with their own children but this is a way you can help financially needy children in your parish or any school," said Branstad.

He mentioned that his children had the benefit of receiving a Catholic education in Des Moines and he believes he was the first governor to send his children to Catholic schools.

"It was really a great experience for them and I want to see more children have the opportunity that goes with Catholic education," said Branstad, who is a member of Sacred Heart Parish in Boone. He said his wife volunteers in the kindergarten classroom at Sacred Heart. "We really enjoy and support the school and we saw this as another way to help ... and at the same time we would get a substantial reduction on our state income tax as well as being able to receive a deduction on the federal tax."

He called the scholarship tuition organizations (STOs) one of the best programs that the legislature has offered to the taxpayers of Iowa.

According to Diane Elbert, development director at Bishop Garrigan Catholic Schools in Algona, the response to the program was very good once they were able to communicate its value to the donors. In the past, taxpayers had been able to make gifts to Catholic schools as charitable contributions but had never received a tax credit.

She commended the local tax preparers and financial advisors for communicating the value of such a gift and "that opened a lot of doors for us." Elbert pointed out that they have already had people calling them for this year, so she anticipated that fundraising efforts will be easier this year as the program benefits become even more well known.

"We appreciate the legislators for passing this and making it available to private schools," noted Diane Elbert.

This year the Msgr. Lafferty Tuition Foundation can raise about double that of 2006 and that means about twice as many tax credits are also available. In 2007, the diocese can raise $1.3 million, providing $845,000 in tax credits.

Gini Buscher and her husband Dick, contributed to the fund because it went for a good cause and offered them some personal tax advantages.

"All of our children went to Bishop Garrigan and we've had three grandchildren graduate from Garrigan," she said. "We have always given to the school - but this is probably the best advantage that we've ever had."

Sherry Nilles, development director at Spalding Catholic Schools of Alton, Hospers and Granville, pointed out that there were people who gave to this foundation that had never given to the school in the past. Plus, there were alumni of Spalding that wanted to be a part of this unique opportunity.

"They were excited about the tax credit, but they were also excited that they could help out a student - help someone actually attend the school," she said. "It was very positive."

She already has a list of contacts for this year's fundraising effort.

Nilles mentioned that initially there was some concern that this would pull dollars away from the school's traditional tuition assistance fund but at this point she has not found that to be the case. People continue to contribute to the school fund.

She has heard that one family who left the school system because of tuition is considering coming back.

Contributors to the foundation not only included parents and alums, but some who work in the system also were donors.

Lorie Nussbaum, K-6 principal at Gehlen Catholic School in Le Mars, contributed to the foundation.

"I believe in Catholic education and the opportunities it provides to for students and families. By giving to the Msgr. Lafferty Tuition Foundation, my husband and I felt that we could contribute toward that even more than once. First by giving to the Msgr. Lafferty Foundation and then by giving again; whatever we contributed, we will get some back and then we can reinvest that again so we can give double the contribution to the school. Because of the way the foundation is set up, it allows us to give twice."

She described this as one of the best things that has happened to meet the desires of families who believe in Catholic education for their children and maybe would not have had the opportunity in the past.

Steve Elbert stressed the fact that the Msgr. Lafferty Tuition Foundation will "positively impact our students, teachers and Catholic school families in all of our school systems. That's a very gratifying feeling. We could not have done this without the team effort of all of our schools in the diocese. It was remarkable the way everyone pitched in."