TUITION ASSISTANCE: Schools receive second distribution of Msgr. Lafferty funds

By RENEE WEBB, Globe editor
Oct. 11, 2007

The tuition statement for some families who send their children to Catholic schools may just have gotten a little smaller.

The second distribution of funds from the Msgr. Lafferty Tuition Foundation was sent to Catholic schools in the diocese on Oct. 4. The checks were sent to the schools and they in turn will credit the accounts of students who qualified for the grants.

Diane Donnelly, diocesan director of parish accounting who provides the accounting services for the tuition foundation, said $64,795 went to Catholic schools through the second distribution and about $565,000 went out in the first round. In all, about $630,000 was distributed between the two distributions.

The tuition foundation was established in 2006 as a result of the Iowa Educational Opportunities Act. The act allows non-public schools to sell tax credits to individual donors to assist families with tuition needs.

According to Kevin Vickery, superintendent of Catholic schools, the main reason some funds were held back for a later distribution was to ensure that families new to diocesan schools could apply for tuition grants.

"As families come to Catholic schools, we want to be able to offer to them the same financial aid," said Vickery, who added that even if families are new to Catholic schools in mid-year they are encouraged to apply.

He pointed out that after the new families had a chance to apply for funds, they also reviewed the first-round applications.

Between the first and second award distributions, they were able to give a financial award to every student who met requirements for the program as established by the State of Iowa (income within 300 percent of poverty.)

"One hundred percent of students who qualified, received some form of financial assistance from the Msgr. Lafferty Fund after the second distribution," said Vickery. "The goal of the Msgr. Lafferty Fund is not only to provide assistance for those who have extreme needs but also for the middle class families." The smallest awards were $100.

This year almost 1,800 students received tuition grants between the first and second distributions.

John Steffes, director of the Kuemper Catholic Schools Foundation in Carroll, said the Msgr. Lafferty fund offers great support to Catholic schools.

"It helps keep more students in our school who have a hard time meeting tuition payments. It keeps Catholic education affordable, which has been a goal even back in the time when our schools opened up many years ago when there was no tuition," noted Steffes. "In these changing times it is more and more challenging to keep Catholic education affordable to all income levels."

While the Lafferty monies are a little more restrictive because of the state guidelines attached to it, he said these funds help free up the local tuition dollars.

Jim Wesselmann, principal of St. Mary's School in Remsen, agreed that these funds help make the tuition affordable to families and since twice as much money can be raised this year, about double the funds should be available next year.

"Hopefully more and more families will take advantage of this to make tuition costs more manageable," he said.

Wesselmann urged people to become involved as donors as well because of the huge tax benefits.

"I think it's a win-win situation for everyone - those giving the money and those receiving it. Donors get a tax credit and then it benefits Catholic education throughout our diocese," he said.

Donors can receive a 65 percent state tax credit as long as they have a state tax liability.

Now that the two distributions have been made, efforts turn toward fund-raising for this year's goal. In the first year, the diocese was allowed to raise $690,000 for its scholarship tuition organization and this year the diocesan STO is allowed to raise and give tax credits on almost $1.3 million.

New this year is the ability for the Msgr. Lafferty Tuition Foundation to accept gifts of stock in addition to cash gifts.

For more information contact Kevin Vickery or Diane Donnelly at (712) 255-7933.