Donations to Msgr. Lafferty Fund gain speed, schools approach goals

By RENEE WEBB, Globe editor
Nov. 22, 2007

With about five weeks or less remaining to make contributions to the Msgr. Lafferty Tuition Foundation this year, about 65 percent of the money has been raised and that comes to about $843,000.

Kevin Vickery, diocesan superintendent of Catholic schools, said while they are just slightly ahead of last year's total percentages, "we have actually raised more to date than our total effort last year." Last year, the diocesan foundation was limited to raising $692,559 and this year the state has allowed the diocesan tuition foundation to raise almost $1.3 million.

The Msgr. Lafferty Tuition Foundation was established last year as a result of legislation signed by the former Iowa Governor Tom Vilsack. The legislation, which is called the Educational Opportunities Act, allowed 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 tuition foundations.

As with last year, each school is allowed to raise a designated amount of money - based on school enrollment - which will be used for tuition assistance in the school as long as they have students who meet tuition assistance guidelines. Of the $1,299,158, $974,500 has been reserved for school designations and the remainder is allocated as unrestricted funds.

"On Dec. 1, the local school designations will be lifted," noted Vickery. "If there are schools that have not filled their designations by that time, then those dollars can be redistributed to other schools that have exceeded their local designation."

As of Nov. 20, five schools have officially reached their goal: Bishop Garrigan in Algona, Sacred Heart in Boone, Kuemper Catholic in Carroll, Pocahontas Catholic and Sacred Heart in Spencer. St. Mary's in Remsen is almost there and there are a few schools who anticipate reaching their designation goal soon, as donations are in the works. (See percentages raised in adjacent chart. While St. Peter's and Paul School is now closed, funds designated for that school will follow its former students who choose another diocesan Catholic school.)

Even though the schools have had to raise almost double that of last year, development directors are having success.

Lisa Niebuhr, development director for Gehlen Catholic Schools in Le Mars, said that while they have officially surpassed 80 percent of their designation goal solid commitments will put them at their limit.

"It has been tremendous," she said. "We had some new individuals who wanted to take advantage of the opportunity."

Niebuhr credited much of the success to publicity. They had speakers at Masses in October and distributed information about the gifting opportunity in bulletins. Possible donors learned how a gift to the Msgr. Lafferty Foundation could offer them huge tax benefits while helping families with tuition. The dollars they would receive back via the tax credit and possible federal tax deduction, she noted, enabled them to give money in other areas as well.

Gehlen also shared the stories of families who were positively impacted by the Msgr. Lafferty money.

She extended thanks to the governor and Iowa legislators who made this possible "because without their support, the donors and schools could not have been so richly blessed." She also expressed gratitude to the financial planners who have helped spread the word about the value of this gifting opportunity.

Mimi Wieck, director of institutional advancement for Bishop Heelan Catholic Schools, agreed that with the help of local tax professionals, potential donors are seeing tax benefits. In addition, the donors are realizing that they are helping families choose Catholic schools. They are seeing it as a win-win situation.

"Having those funds available has positively impacted our enrollment," she said.

By having Msgr. Lafferty funds, coupled with Bishop Heelan's in-house tuition fund, Wieck said more families are receiving assistance with tuition.

Tom Miklo, development director for St. Edmond Catholic School in Fort Dodge, said with the tax benefits the new tuition organizations are working "as designed - making giving much more cost effective."

He acknowledged that when this program was introduced he was afraid that it would take away from the school's annual fund dollars that are necessary for each of the schools. But that hasn't happened.

"Our donors have done a terrific job of recognizing that we still needed their annual gifts but this was a way that we could do more and get something back," said Miklo.

While he is uncertain if the new tuition grants boosted school enrollment, he said without question it has helped to keep students in the system because more families are receiving some form of assistance.

"The good news is that we are greatly appreciative of the fact that with most of the gifts that were designated to a school that already exceeds its designation, the donor has allowed us to redirect the gift to the unrestricted funds," said Vickery.

To date about $18,000 has been raised for the unrestricted funds, but another $306,000 has yet to be raised.

When the Msgr. Lafferty Tuition Foundation was established last year, its board of directors was insistent that there be funds allocated to those most in need and that's when they determined that 25 percent of the funds would be unrestricted to help schools with particularly high need.

Vickery pointed out that they are pleased with the fund-raising efforts and are slightly ahead of last year's percentages, despite being allowed to raise twice as much.

"Last year we were one of the first STOs to raise all of the allowed dollars," he said. "Last year we had successfully raised 100 percent of our goal by Dec. 6."

Those who are interested in making a donation to the Msgr. Lafferty Tuition Foundation will have until the end of this year or until all of the almost $1.3 million in tax credits have been allocated - whichever comes first.

For more information contact your local Catholic school or call the Diocese of Sioux City at (712) 255-7933.