Gifts of Grain
Did you know the Community Foundation accepts gifts of grain? Donating a gift of grain to the Community Foundation is a simple way to make a lasting difference. Even donating an acre’s worth (or more) of grain can make a difference. Plus, there are significant tax benefits for donating grain directly to a charitable organization rather than selling the grain and donating the proceeds.
How you benefit
By giving grain directly to the Community Foundation, you avoid including the sale of the grain in your farm income. Although a charitable income tax deduction is generally not available to you, the avoidance of declaring it as income is a significant benefit to cash basis sole proprietor farmers. You deduct the cost of growing the crops which typically results in saving self-employment tax, federal income tax, and state income tax. Another great benefit is that it doesn’t matter if the donation is made in the year of production or a later year. The only requirement is that control of the grain is given to the Community Foundation.
How to Give
- Let the Community Foundation know first to which elevator you will be taking the grain.
- The gift should be from unsold crop inventory (not warehouse receipts) with no sale or pricing commitment made prior to the gift.
- Deliver the grain to the elevator in the Community Foundation’s name.
- Send a settlement report to the Community Foundation. This must show the Community Foundation as the owner of the grain.
- We will provide you with a donation receipt for your gift. Remember it is nondeductible on your taxes. You don’t have to declare this amount of grain as income to your farming operation.
- After the grain is donated, the Community Foundation will communicate directly with the elevator regarding instructions to sell the grain. The scale ticket will name the Community Foundation as the seller of the grain and will receive the sale proceeds.
- Always consult with your tax advisor to determine whether this gift is appropriate for your tax situation.
More Information
Flyer and Letter from the Producer Regarding a Gift of Grain