What is the Iowa Lutheran School Tuition Organization (ILSTO)?
During the 2006 Iowa Legislative Session a new program to benefit Iowa non-public accredited school families was put in place. It was designed to help parents who desire a non-public education for their children but are unable to afford it. For 2008, the legislature allocated $7,500,000 for Iowa Tuition Tax Credits.
Because of this, in January ‘07, the State accredited Lutheran Schools came together to form the Lutheran School Tuition Organization. During last school year, the ILSTO’s goal was to raise $346,000 for this tuition organization. The ILSTO had $224,928 in tuition tax credits to distribute. They raised $155,031, about half the amount designated. For the ‘08 tax year, the ILSTO will have $311,812 in tax credits to distribute to donors. The allocation was to raise $479,865.
How does this benefit Iowa East Lutheran schools and donors? In two ways.
First, those who donate to the ILSTO may receive a 65% state tax credit. For example, a donation of $1,000 may generate a voucher for $650 sate tax credit. In addition, there may also be a Federal income tax charitable contribution deduction.
A donor is able to designate which Iowa Lutheran School they would like there donation to benefit. Wouldn’t it be great to help a student attend an IDE Lutheran School instead of paying taxes?
Second, families whose income is up to four times the national poverty rate are eligible for tuition assistance from this program. This means that the ILSTO would be able to more fully fund students attending IDE Lutheran Schools, increase enrollment, provide ministry with the community, and share the Gospel with more children and their families. Now that’s something to think about.
The ILSTO’s goal is to fully fund the Lutheran STO this year, and they are asking each member of IDE to consider a donation. Not only will this help students attend Iowa East Lutheran schools, it will also benefit the donor through a tax credit. Please share this information with others. Any person who pays Iowa income tax may be eligible for the tuition tax credit.
Consult a tax advisor, to see how this program can benefit you.
Parents with students attending one of our Iowa state accredited Lutheran schools can apply by April 1 for scholarship assistance.
For more information, spend some time at iowalutheransto.org or contact Mrs. Buescher at 319-233-3967.
To receive tax credit for the 2008 tax year, donations must be made by December 31, 2008. Remember, they only have $311,912 in tax credits to give out. Once that amount is gone, there can be no more tax credits given. So donate early, you don’t want to be left out!
The ILSTO is now able to accept non-cash donations also.
