Frequently Asked Questions

For Donors

1. How much is the tax credit?Taxpayers who contribute to CTO receive a tax credit certificate, issued by the School Tuition Organization, equal to 65% of the donation. The contribution is also eligible for a federal tax deduction as well when the donor itemizes on their federal return.  Please consult your tax advisor for your specific tax implications.
   
   
2. How much of the contribution is used for tuition assistance and how much is used for operations of the CTO?  At least ninety percent of the money donated must go back out to eligible families within the calendar year.
   
   
3. Who may contribute to the CTO? Any Iowa taxpayer can contribute to the fund and is then eligible for the tax credit. Corporations and businesses may contribute to the CTO, but are not eligible for a tax credit in Iowa.
   
   
4. How will donors know that the money will be used for its intended purpose of tuition assistance to eligible families? An annual audit of the funds and distributions will take place by certified public accountants to ensure compliance.
   
   
5. Will there be an annual report to donors? Yes. The plan is to provide an annual report listing how the money was distributed as well as an alphabetical listing of donors who wish to be identified. 
   
   
6. May gifts to the Catholic Tuition Organization be restricted to an individual Diocesan School? Yes. It is possible for a donor to restrict their gift to an individual school or system represented by the CTO.  It is important to note, however, that once the identified needs of the families attending that school have been met any unused restricted donations must be made available to other needy families at other CTO schools where the local need has not been met. For example, if there are restricted gifts totaling $100,000 to School A, and the families who need scholarships at School A are eligible for a total of $75,000, the unused $25,000 of restricted gifts must be made available to other eligible families in the CTO schools that need support.
   
   
7. Are contributions put into an endowment?  No.  Unlike an endowment fund, donations by law cannot be held to support future needs. Therefore, the CTO must raise funds annually and present scholarships annually to support the ongoing needs of the eligible families.
   
   
8. May gifts to the Catholic Tuition Organization be restricted to an individual student?  No.
   
   
9. Is there a limit on the size of individual gifts accepted by the “Catholic Tuition Organization, Diocese of Des Moines?” No.  There are no limits for contributions to the CTO up to the amount of tax credits available each year. 
   
   
10. Is there a limit on the tax credit? The law requires that all tax credits will be equal to 65% of the gift received for the tax year in which the gift is received. This CTO can give tax credit certificates equal to $1,273,851 for the current year, which is based upon the total student enrollment of the CTO. 
    
    
11. What is the annual fundraising goal?  In order to issue the $1,273,851 of tax credits, the CTO will have to raise $1,959,771 in contributions before December 31st.
    
    
12. Should existing donors see this as new giving or a replacement of gifts already given?   Donors should be encouraged not to replace existing giving to a school with this gift because the net result will not increase opportunities for student assistance.  Donors new to giving to schools can give a gift here and become financial supporters that add to the total amount of assistance available to students. 
     
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