Gifts Of Grain: Use What You Grow To Feed Your Charitable Goals

Gifts of grain can provide support to any charitable fund at the Community Foundation, including a fund you start.

Participating Elevators Include:
Ag Plus, Inc. | Cal-Maine Foods, Inc. | CereServ | Clunette Elevator Deatsman Grain Farms | Louis Dryfus | Mentone Grain & Feed.

Donating grain to the Community Foundation to create a family fund, support a nonprofit you value, or strengthen local charitable causes is a simple way to make a lasting difference. Whatever you choose, your gift will help grow your community’s future.

How It Works:

1. Deliver grain to your elevator, and let them know you are making a gift of grain.
2. The Community Foundation authorizes the sale of the grain and collects the proceeds.
3. The Community Foundation sends you a receipt for the grain you donated. Unless you specify a fund, proceeds will go to the Ag Cares Fund, which support local food, youth, and ag-related programs.

Why a Gift of Grain?
Cash-method farm operators have a unique opportunity to make an “above the line” charitable contribution, which is readily marketable by the charitable recipient.

As an example, Bob, a cash method farmer, normally reports Schedule F farm income of about $50,000 on his joint return. Sue, his spouse, has wages of $50,000. Bob and Sue both contribute about $5,000 annually to charity, but have not itemized deductions in many years because their only Schedule A. A deduction is state income tax paid. This year, Bob and Sue contributed $5,000 of unsold grain to the Community Foundation, rather than selling the grain and contributing cash. The Foundation subsequently sold the grain for $5,000.

As a result of their contribution, they save over $1,500 in federal, self-employment, state, and county income taxes.

Consider a discussion with your tax advisor to see if this makes sense for you.