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What Is NICSTO?

Northwest Iowa Christian Schools Tuition Organization is the result of a new Iowa law allowing private donors to give money to families to help pay for tuition to private schools in exchange for a 75% tax credit (not a deduction) on their state income tax.

Then school families can apply to receive those funds in the form of scholarships if they fall below certain income requirements.

Donors

The state has recognized the need to support taxpayers who wish to support Christian education.  Starting immediately, Iowa taxpayers can receive a tax credit of up to 75% of their donation that supports families who need tuition assistance and deduct 100% of the gift on Federal Income Tax.  How does it work?

  1. You must owe Iowa state income tax.
  2. You must make out a check to NICSTO (Northwest Iowa Christian Schools Tuition Organization) and designate it to Sanborn Christian.
  3. Receive a Contribution Memo from the office and complete it.  This MUST be sent with the check to Sanborn Christian.  The contributions MUST be received by December.  Include your social security number for tax credit purposes.  
  4. NICSTO will send you a letter of receipt for your Federal Tax information.
  5. In early January, you will receive a tax credit certificate to attach to your Iowa tax form.
    Your money will be used for families who qualify for NICSTO at Sanborn Christian School.

If you would like to donate to this wonderful opportunity, you may do so at any time.  You can contact Mr. Minderhoud at 712.729.3288 or a finance committee member.

In the past, NICSTO only recognized individual donations.  Now the state has allowed C-Corporations to contribute and receive a 75% tax credit on the donation amount.  Therefore, businesses that are C-Corporations and complete Iowa income tax form 1120 or 1120A are eligible to donate and receive this tax credit.  There is no limit set on the amount of a corporate donation.

It is that easy.  You will then get 75% of your donation back as a tax credit from the state of Iowa.  Donations must be in by December 1.

Example:  If you contribute $1,000 to NICSTO, you will receive a 75% tax credit or $750 on your IA income tax.  

Scholarship Applicants

Families who have children in grades Kindergarten through 8th are eligible for NICSTO.

If you would like to apply for this scholarship opportunity, please contact the school office for a form (712.729.3288) or download it here.  Turn your completed application form into the office to the attention of Mr. Minderhoud by June 10.  A recommendation will be made after all the applications have been received. 

For a copy of the NICSTO application - click here.

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