MUSCATINE, Iowa — When Pat Carroll found herself a single mother, with five of her 11 children still living at home, she remained determined to see to it that they received a college education.

Today, her children are educated adults, and the family is encouraging future generations to go to college.

When Pat’s husband, Francis Carroll, died in 1977 unexpectedly at age 54, Pat went back to school herself and completed a one-year clerical program at Muscatine Community College.

After witnessing the way education changed her  life and her children’s lives, they established a scholarship endowment in memory of Francis Carroll, who had served on the Louisa-Muscatine School board for 10 years until his death.

Judi Holdorf, executive director of the Community Foundation of Greater Muscatine, said the Carroll Scholarship began through a special Foundation program called an Acorn Fund.

This program allows for an endowment fund of $10,000 to be developed over a period of 10 years. Pat’s son, Paul Carroll of Muscatine, said the Carroll Scholarship Fund matured this year after Pat’s daughter and son-in-law, Mike and Teresa Colgan of Burlington, added a substantial donation to the account.

The Francis and Pat Carroll Scholarship will  begin awarding  scholarships in the fall of 2010. Preference will go  to a  Louisa-Muscatine High School graduate.

“This tells you you can do good things on a modest income, and it doesn’t take a huge gift to start an endowment,” said Holdorf. “It just takes a huge heart.”

Paul Carroll said his mother is terminally ill and knowing the scholarship fund has matured is especially meaningful for her.

Paul Carroll said the non-profit organization Friends of the Barn, of which he is a member, recently set up an Acorn fund through the Community Foundation of Greater Muscatine.

Carroll said contributions to the fund have already exceeded $5,000. When mature, earnings from the fund will  be used to maintain and do improvements on the Barn the organization is preserving.

The amount of money donated for an endowment is never spent, said Holdorf. Up to 5 percent of the interest generated by the endowment is used for philanthropic gifts and projects. This way, the endowment is never used up.

“That is why endowments are so useful to the future of our community,” said Holdorf.

Holdorf said the state of Iowa offers tax breaks for people who establish endowments.

The Iowa Values Fund legislation gives an income tax credit of 20 percent to people who donate to endowments at qualified community foundations, such as the Community Foundation of Greater Muscatine.

The credits are subtracted from the taxpayer’s whole tax liability and reducing the amount of taxes owed.

In 2009, that tax credit is in addition to the regular charitable deduction a taxpayer is eligible to take from federal and state taxes. That incentive changes in 2010 for donors to endowments who will not be able to take the regular charitable deduction on state income taxes, but may still take the federal charitable deduction as well as an increased tax credit of 25 percent. Approximately $4 million in tax credits are available each year and are given on a first-come, first-serve basis.

Donors should get their donation in soon to ensure this year’s favorable credit.  However, it may be possible to carry the tax credit over to next year if the state runs of out credits before the end of December, said Holdorf.

There is no minimum amount of money that can be donated to receive the credit, but there is a maximum of $500,000 which will yield a credit of $100,000.

How to donate:

To donate to the Community Foundation of Greater Muscatine, call 264-3863.