Giving

Gifts of Grain

Grow the Future of Your Community

Give the Gift of Grain
Most people think of donating cash or volunteering their time when they think of supporting their favorite charitable organization. Another good option is to give a gift of grain.

Benefits of Giving Grain
A gift of grain is a good way to share the harvest and support your community. By giving grain to the Community Foundation, the value of the contributed grain is avoided income and taxable income is reduced. Depending on circumstances, farmers may realize savings on federal and state income tax and self-employment tax, and can still deduct the costs of production.

This is a way of giving that allows farmers to support a nonprofit organization that is meaningful to them. The value of the grain could go towards an existing endowed fund or a new fund could be started.

Another option to consider is a gift of livestock. The ownership transfers to the charity before the livestock is sold and the farmer will not have taxable income from the sale.

There are specific procedures that must be followed to make sure you get the desired tax results. Be sure to contact the Foundation before making a gift of grain or livestock. Farmers should consult with their tax consultant to see if this is a giving strategy that is right for them. The following information is not to be construed as specific tax advice. For more information or if you have any questions, contact the Community Foundation at (765) 454-7298 or info@cfhoward.org.

Guidelines for Completing Your Charitable Gifts of Grain

You can exclude the sale of the cash crop from income and deduct the cost of growing the crop. There is no deduction for a charitable contribution.
You must give up "dominion and control" of the commodity.
The grain cannot be sold with an order for the proceeds to be sent the Foundation. This would result in the transaction being considered a cash sale and cash donation since control of the property was not given up.
The transaction must be well documented to show the Foundation as the owner (i.e. commodity is delivered and a warehouse receipt given.
The Foundation will retain the receipt and the original invoice showing it as the seller.

Steps

Contact the Foundation about the intended gift of grain so we can set up an account at the elevator.
Deliver the grain to the elevator.
Transfer the grain as a gift to the Foundation by having the elevator send the receipt to us. The receipt must show the Foundation as the owner of the grain.
We will provide you with a donation receipt for the gift. This amount of grain will not have to be declared as income.
We will authorize the sale of grain and collect the proceeds.
You will receive an acknowledgement of the transaction from us for your gift of grain.

To discuss any of these methods you may call us at (800) 964-0508 or email us.