What is an STO (aka School Tuition Organization)?

What is a School Tuition Organization?
A School Tuition Organization (STO) is a charitable organization that receives voluntary cash contributions from Iowa taxpayers and allocates those funds in tuition grants to Iowa school children, who use those grants to attend one of the accredited non-public schools represented by the STO. At least ninety percent (90%) of the money received by an STO must go back out in tuition grants.

Who is eligible to receive these tuition grants?
K-12 students who reside in Iowa and whose household’s taxable income is at or below 400% of the federal poverty rate are eligible for STO grants. STO grants are not available for preschool students.

How does the STO program benefit families in Iowa?
The tuition grants created by the STO program will give a choice to those families who may have otherwise been unable to afford a non-public school.

What is the Educational Opportunities Act?
This act, passed by the Iowa Legislature in 2006, allows Iowa taxpayers to receive a tax credit equal to seventy-five percent (75%) of the total amount of voluntary cash contributions made to a School Tuition Organization.