Frequently Asked Questions

What is a School Tuition Organization?
A School Tuition Organization (STO) is a charitable organization representing two or more accredited nonpublic schools. The STO receives contributions from Iowa taxpayers and redirects those contributions in the form of tuition grants to eligible students attending schools represented by the organization.

Who may receive tuition grants?
The law restricts tuition grants to students living in households with income that does not exceed three times the federal poverty guideline based on family size. An STO may set additional eligibility requirements.

Is there a limit on how much one person can give, or how much an STO can receive?
There are no limits on individual contributions, however, STOs across Iowa are limited in the total value of gifts they may receive. The Iowa Department of Revenue determines how much each STO is able to accept, based on their number of represented students.

What about a Federal income tax deduction?
You may still take the entire amount of your donation as a deduction on your Federal income tax return. Therefore, persons paying both state and federal taxes will receive MORE than 65% of their contribution back.

Is there a difference between a tax credit and a tax deduction?
A tax deduction simply reduces the total amount of income on which your tax is computed. A tax credit is taken directly off the amount you owe in state taxes, making it MUCH better than a deduction.

Home - About the MVSTO - FAQs - Making a Gift - Meet the Board - Contact Us