Diamond Dilworth and her two daughters moved to Richmond in 2019. Dilworth didn’t know what the future held for them, but she knew what kind of school she wanted her children to attend. A product of Catholic school herself, Dilworth wanted the same foundation for her children. She visited All Saints School, Richmond, and knew her family belonged.
“I wanted my girls to have a foundation in Catholicism during their formative years, because I wanted to ensure that Christ is at the center of every decision they make,” she said. “I want their point of reference for any situation to be Christ’s words and to share the love that Christ has for us with everyone they encounter.”
The biggest roadblock for Dilworth was the cost, until she learned about the diocese’s McMahon Parater Scholarship Foundation (MPSF), which was established in 2008 by Bishop Francis X. DiLorenzo. MPSF awards millions of dollars in scholarships and financial aid every year to help families pay for tuition.
“If it were not for this program, I would not have been able to afford the tuition payments,” Dilworth explained. “My girls are thriving from the foundation that a Catholic education provides, and I never miss an opportunity to share with others what this program has allowed me to provide them.”
There are hundreds of students sitting at desks in Catholic schools across the diocese thanks to MPSF. Since its inception, the foundation has raised $60.5 million from nearly 3,600 donors. For the 2024-2025 school year alone, the foundation has awarded $4.7 million in scholarships to 1,350 students, with the average scholarship amount being $3,483.
Kathryn McElheny is the director of the McMahon Parater Scholarship Foundation and Catholic School Development. She previously served as the development and enrollment director at St. Joseph School, Petersburg, where much of the diverse student population receives tuition assistance. Now she oversees donations for 29 Catholic schools, and her dedication to the cause has only grown.
“First and foremost, I believe a Catholic education provides children an environment where they feel seen, understood, and cared for. That experience is so foundational to any learning,” said McElheny. “And that impact doesn’t stop with students – it radiates out to schools, families, and communities.”
McElheny explained that donating to MPSF doesn’t just benefit students, but donors as well, as they get a 65% tax credit thanks to the Education Improvement Scholarships Tax Credits program (EISTC). The EISTC program was passed by the Virginia Assembly in 2012 and provides state tax credit for donations made to approved scholarship foundations, such as MPSF.
A student must meet certain eligibility guidelines to receive EISTC funds. The family’s income must fall below 300% of the poverty guideline for their household size, and the student must be a prior recipient of EISTC, entering kindergarten/first grade, or transferring from Virginia public school or from out of state.
As for the tax credit, McElheny said many donors believe it’s too good to be true. “The best part is it’s actually pretty simple,” she said.
“When a donor makes a qualifying gift to the Foundation, they will receive a tax credit of 65% of their donation,” she explained. “A tax credit is better than a deduction because it directly reduces your tax liability. Let’s say a donor makes an EISTC donation of $10,000. The credit they receive will directly lower their tax bill by $6,500.”
Bruce Holbrook is the MPSF board chair and one of many certified public accountants (CPA) involved in the Foundation. He uses his expertise to recruit new donors and walk them through the tax credit process. He explained that even though the donor gets a 65% tax credit, MPSF still gets 100% of the donation.
Donors can also gift appreciated stock to MPSF instead of selling it. This would allow the donor to avoid paying capital gains tax on the sold stock and instead receive the tax credit as well as a tax deduction. Another perk is that donors can allocate funds to specific schools in the diocese if they so choose.
“When you think about the number of scholarships we give, it’s great,” said Holbrook. “As a leader and a contributor, it’s a really good feeling to help kids get through school when they otherwise couldn’t.”
Holbrook attended Catholic school as a child and sees his work as a way to give back. He also called the program a “savior” for Catholic schools by providing much-needed funding and filling seats in the classroom. “You’re helping Catholic schools, and they need all the help they can get,” he said.
Board member and CPA Ed Blair considers the program a life changer for everyone involved, from the donor to the student to the greater community. He identified Cristo Rey Richmond High School as a prime example.
Opened in 2019, the school’s first graduating class boasted a college acceptance rate of 100%, an incredible achievement for families who thought college was out of reach. Most students come from low-income homes in Richmond and the surrounding counties. Students have a unique curriculum including rigorous academics, an emphasis on faith and service, and vocational training to prepare students for the work force. This would not be possible without MPSF.
“I think learning about service to others is just as important as reading and writing and math,” said Blair. “You come out of school learning how to be good citizens and have a faith base to live a productive life.”
MPFS donor Jim Carreras donates his money to specific schools, including Cristo Rey and Benedictine Schools of Richmond. He called participating in the EISTC program “a no-brainer.”
“My wife and I are big on education. We think education is the best way to get out of poverty,” he said. “We discovered the tax credit that would help inner-city schools and that was our main thrust.”
He recalled a Benedictine luncheon when one student who had received financial aid stood up to thank donors, telling them, “Sometimes we only need one chance in life.” That student would take that one chance and end up earning a full scholarship to college.
Catholic schools are not just for Catholics. All families are invited to apply for MPSF aid, regardless of religious, cultural, or financial background.
Donna Henry is the principal at Portsmouth Catholic Regional School, where two-thirds of the students receive financial aid. She spoke of families desperate for their children to attend Portsmouth, but never thinking it was possible – and their joy when they learned that it was. Walking down the halls, she sees the impact of tuition assistance every day on the smiling faces of her students.
“I thank God for EISTC and the blessings it brings to our children and their families as we work together to raise saints, scholars, and servant leaders – all in a spirit of excellence,” said Principal Henry. “More gifts are brought to a table where all are welcome. How beautiful is that? Strength in numbers – strength in the spirit.”
Learn more and donate to the McMahon Parater Scholarship Foundation.