By DAWN PROSSER Director of Communications Although many diocesan school students are receiving a $7,826 education savings account (ESA) this year towards Catholic school tuition and other qualifying expenses, many families still need funding from the Monsignor Lafferty Tuition Foundation (MLTF) to finance a Catholic education for their children.
Since the implementation of ESAs in the 2023-24 academic year, there has been confusion regarding the continued need for MLTF funds. John Schmitz, director of stewardship and development for the diocese, said some mistakenly believe MLTF is no longer needed.
“The need for tuition assistance is ongoing as the cost of providing an exceptional faith-based education continues to increase … The cost to educate a child in a Catholic school is often more than the amount provided through an ESA,” he explained. “The MLTF monies can close that gap.”
In the awarding process, the MLTF tuition grants will first be allocated to qualifying applicants before applying ESA funds to the students’ accounts. Any shortfall between the grant and ESA funds and the cost of tuition is the responsibility of the families.
“If there are any leftover ESA funds, those could be used for tutoring, computers or other qualified expenses or banked in the parents’ digital wallet for future use until the child graduates high school or turns 21 years of age,” Schmitz explained.
For the current academic year, $2,285,083 in tuition scholarships were awarded to 2,700 students in the 15 diocesan Catholic school systems. The goal was $3.85 million with 60% of the goal raised in 2023.
By law, 90% of each contribution to MLTF is allocated to the schools and up to 10% is allocated to cover administrative costs. Marilyn Wellman, diocesan accounting analyst, said on average, 95% of MLTF funds collected are allocated to the schools.
MLTF and schools are working in conjunction to raise $3,699,678 before Dec. 31, 2024, with those dollars earmarked for the 2025-26 academic year. Schmitz acknowledged that in most years, the majority of the contributions come in the months of October, November and December. At this time, 16% of the goal has been raised.
School goals As part of the overall goal, each diocesan school has a specific fundraising goal to meet in order to provide tuition scholarships for their students.
“Each school goal is calculated based upon the enrollment numbers in the 15 schools,” the director explained.
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Some schools are moving closer to their goals, despite record flooding this summer. Although numerous residents and business owners were affected in Spencer, Sacred Heart School has raised 61.3% of their goal – the highest percentage of all diocesan schools.
Danbury Catholic School is at 53.2% of MLTF funds raised towards their goal and Boone Sacred Heart Catholic School has raised 44.4% of their $58,701 goal.
Schmitz pointed out that donors can designate one or more diocesan schools to benefit from their gift to MLTF.
Benefits to contributors Those contributing to the MLTF program receive a 75% state of Iowa tax credit of the total contribution and could enjoy federal tax benefits from the gift, Schmitz explained. The investments made by the donors result in tuition scholarships for families attending diocesan Catholic schools who meet income requirements.
Families of Catholic school students and donors both benefit from MLTF participation.
“Students in our 15 schools throughout the Diocese of Sioux City will receive tuition assistance and our donors receive a 75% state of Iowa tax credit. It’s a win-win for everyone,” SchmSchmitzitz stressed.
Donors can contact their local Catholic school to participate in MLTF to enjoy the tax credits and assist students. Schmitz is also available to assist at [email protected] or (712) 233-7513.
For more information on the MLTF program or to contribute online, click here.