Catholic Tuition Organization Awards $2.1 Million in Tuition Grants for the 2025-26 School Year

August 21, 2025

Students praying at a Catholic school

A total of 1,945 students attending 16 Catholic schools in the Diocese of Des Moines will receive a tuition grant from the school tuition organization, Catholic Tuition Organization (CTO) located in Des Moines, Iowa. A total of $2.1 million in tuition grants were awarded. Funding of the awards is made possible by hundreds of donors who supported CTO in 2024.

Twelve school tuition organizations, like CTO, are granted authority by Iowa under the School Tuition Organization Tax Credit law enacted in 2006 to incentivize non-public contributions to fund tuition grants for low- and middle-income students in the state to attend accredited, nonpublic schools here in Iowa.

Tax credit-funded tuition grants from CTO can only be awarded to families that are below 400% of federal poverty guidelines under rules established by the state. For a family of four, the limit would be $128,600 in total income as demonstrated on their 2024 tax return. This fall, 1,082 families were eligible and received funding.

In the Diocese of Des Moines, CTO awards are the first monies applied to student tuition expenses.

A total of 89% of families receiving a CTO tuition award documented W-2 family income for tax year 2024 averaging $67,897 across all family sizes. In addition, some valuable statistics:

  • 85% of families that applied were below the 400% of poverty threshold.
  • 76% of families were fully working (2-parent households with both parents working or 1-parent household with one parent working). A further, 20% of 2-parent households had 1 parent working.
  • Only 3% of families did not have a parent working at the time of application (including grandparent custodians).
  • 38% of students receiving a tuition grant received either a free or reduced lunch at their school.

Donors who have a state income tax liability have access to a 75% tax credit - the most generous tax credit in Iowa - through a CTO donation. For donors, this is a significant way to reduce out-of-pocket tax expenses. However, the primary donor motivation is to help needy students attend a Catholic school.

Any tax credit greater than their 2025 tax liability may be credited to their tax liability for the following five tax years or until depleted, whichever is earlier. The remaining 25% of the donation is eligible to be used as a tax deduction for those who itemize on their federal return.

Eligible donors in 2025 under state law include those expecting to pay Iowa state income tax for the calendar year, including individuals, some trusts and estates, partnerships, limited liability companies, S-corporations and C-corporations. There is no limit in state law as to the amount of a single tax credit that can be granted by an STO.

For more information on CTO tuition grants or donating, contact Brian Tingleff, Director, at 515-237-5010 or btingleff@dmdiocese.org.