MLTF crucial to closing the gap

By RENEE WEBB
 Content and Design Coordinator

For nearly 20 years, generous donors have given to the Msgr. Lafferty Tuition Foundation to assist families that choose Catholic education for their children.

Donors will once again have the chance to contribute as the 2025 diocesan goal is $3,740,132.

“That is an increase of just over $40,000 in available tax credits,” said Lexa Hawkins, manager of donor relations for the diocesan Office of Stewardship and Development.
Donors receive a 75% state of Iowa tax credit on donations to MLTF.

“Anyone who pays Iowa state income tax and has a tax liability is eligible to benefit from the program,” said Hawkins. “These credits may be applied over a period of five years. For example, if the credit is not fully used on a 2025 tax return, the balance can be carried forward through 2029.”
HawkinsFor self-employed individuals or those making quarterly payment, she stressed the tax credits can significantly offset tax obligations – reduce a donor’s Iowa state tax liability.
In addition to potential huge state tax savings, there may be additional charitable federal deductions.

It was in 2006 that the diocese’s school tuition organization was established thanks to the Education Opportunities Act that created the STO tax credit program. Since that time, thousands of students have received tuition grants and millions of dollars have been awarded through the MLTF in the diocese.

While final numbers for the 2025-26 school year are not yet confirmed, Hawkins estimated that for this 2025-26 schools year alone more than $2 million was awarded to nearly 3,000 students.

Molly Petersen, principal of Danbury Catholic School, pointed out that this year the school had twice as many families qualify for the MLTF tuition scholarship than last year.

“This extra scholarship is so helpful to the families that need the support,” she said. “It has been very moving to hear the relief in a parents’ voice when they find out that the MLTF has covered a chunk of the tuition bill they thought they were going to have to cover.”
Danbury Catholic SchoolWith this year being the first year that all Iowa families had the chance to apply for education savings accounts (ESAs) regardless of income, some people have mistakenly assumed that MLTF and other STOs are no longer needed.

“The ESA program does not always cover the full cost of tuition,” said Hawkins. “MLTF scholarships help fill the gap for families. MLTF funds are applied to tuition accounts before ESA dollars, ensuring that any remaining ESA balance can be used for future tuition or other eligible expenses, such as laptops or tutoring. Continued support of MLTF also lessens the burden on schools to provide additional tuition assistance locally.”

During a recent interview on the Illuminating Catholics podcast, Petersen said having the ESAs coupled with MLTF has made a difference to families in helping them choose or remain in Catholic schools.

“There has been a lot of positive feedback from the families,” she said in the episode that will be available on Sept. 2. “They really appreciate this.”

Donors may contribute to this campaign until Dec. 31 at 11:59 p.m. or until all of the tax credits have been distributed – whichever comes first.

Each Catholic school in the diocese has been given an individual fundraising goal based on the school’s enrollment.

“While schools are asked to meet their goal, any funds raised beyond that amount remain with the school to support qualifying families,” said Hawkins.

In Danbury as in other Catholic school communities, Petersen pointed out that through the years a variety of individuals have contributed to the MLTF from community members with no actual ties to the school to grandparents and alumni.

Some may contribute $50 as a means to help a particular school with what they can, she added, and others may give thousands of dollars to acquire the tax credits and lighten their tax bill.

Along with individual taxpayers, C-corporations, S-corporations, LLC’s and partnerships also can qualify for the tax credits.

“If someone is looking for a way to support their local Catholic school, this is an amazing program to be able to donate to,” said Petersen. “The families are truly benefiting from this because it is relieving some of their burden with the tuition. I think it’s a fantastic program and I am thankful it is available.”

 Gifts of cash, appreciated stock and grain are acceptable methods of contributing to the MLTF program. More information is available from local development directors and by contacting Hawkins at [email protected] or (712) 233-7524. Donations to the MLTF may be made online by CLICKING HERE.

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