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.
Click here for a donation form.
The state has recognized the need to support taxpayers who wish to support Christian education. Iowa taxpayers can receive a tax credit of up to 75% of their donation that supports families who need tuition assistance and deduct 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 School Tuition Organization)
and designate it to Sanborn Christian.
3. Complete the “Contribution Memo” and send it with the check to Sanborn Christian.
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. Would you like to have your Iowa income taxes go to Sanborn Christian to help with the tuition scholarships AND pay down the building debt at the same time…or for it to go to Des Moines?
Example: If you contribute $1,000 to NICSTO, you will receive a 75% tax credit or $750 on your IA income tax.
If you have an IA income tax liability of $750, you could give $1,000 to NICSTO which would then provide SCS with that $1,000 to be used for tuition scholarships. Then, when you do your tax work in March/April, you will receive a taxcredit of $750 from the State of Iowa. You could then give this $750 refund to Sanborn Christian to help eliminate the debt on our school. Sanborn Christian benefits by $1,750 through a $1,000 gift: $1,000 to NICSTO, $750 to building debt.
For those who are at least 70.5 years old, we encourage you to give from your IRA (you may use your RMD) to NICSTO. If you give $1,000 from your IRA you do not need to include it as taxable income on your return. SCS receives $1,000 for NICSTO tuition scholarships, plus you will receive a state income tax credit of $650 that you can use to help SCS eliminate the remaining building debt. Once again, SCS benefits by $1,650 on a $1,000 gift!!
Yes! The NICSTO program has been around for years and has been a benefit to both the recipient (SCS) and the donor (you). This is a great tax benefit to those who will be paying taxes on their income.
If you wish to donate, please fill out the donor sheet (included in the School Bell) and return it to SCS 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.