Share your Harvest: Give Grain

Corn-StalkGrowing the Future with Your Community Foundation

Your crops are your livelihood. You prepare, you plant, you nurture and they grow. That’s what we do with the charitable gifts entrusted to your Community Foundation, and we invite you to grow the future of your community with us.

Why Donate Grain?

Donating a gift of grain to your Community Foundation is a simple way to make a lasting difference. The value of the grain can be used to start an endowed fund in the name of your family, for a specific nonprofit organization important to you or to support charitable causes in your community. No matter what type of endowment you chose to establish or support, you can be sure that your gift of grain is growing the future of your community.

How You Benefit

By giving grain to your 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. You deduct the cost of growing the crops which typically results in saving self-employment tax, federal income tax and state income tax. You can benefit even if you don’t itemize your deductions and take the standard deduction.

How it Works

Your Community Foundation invites you to donate a gift of grain that will benefit your community forever.

Here is an example:

Income  Without the Charitable Gift  With the Charitable Gift 
Other income from farming $35,000 $35,000
Income from grain sale $15,000 $0
Total Income* $50,000 $35,000
*You pay employment, federal income & state income tax based on adjusted gross income (less typical exemptions, deductions, etc.).
Note: Crops produced for sale in a farming operation are considered “ordinary income property.” The deduction for a gift of ordinary income property to a charitable organization is limited to the lesser of fair market value or cost basis. Typically the cost basis has already been deducted from income as the costs of producing the crops; thereby commonly the cost basis is zero (0), making the gift, in effect, non-tax deductible.

As each farmer’s situation is different, you should consult your professional advisor for legal and tax advice on how a gift of grain may apply to your circumstances. This information should not be construed as providing you with legal or tax advice.

How to Complete Your Gift

Following these specific steps will help ensure you receive intended tax benefits from a gift of grain.

NOTE: If you deliver the grain, sell it and order the proceeds sent to the Community Foundation, you won’t be eligible for the tax benefits described.

  1. Let the Community Foundation know of your intended gift of grain using the Notice from the Producer (pdf). The gift should be from unsold crop inventory with no sale commitment made prior to the gift.
  2. Deliver the grain to the elevator in the Community Foundation’s name.
  3. Send a settlement report to the Community Foundation. This must show the Community Foundation as the owner of the grain.  (Avoid making a gift of an actual warehouse receipt; give the grain itself.)
  4. We will provide you with a donation receipt for your gift. Remember it is non-deductible on your taxes. You don’t have to declare this amount of grain as income to your farming operation.
  5. After the grain is donated, the elevator will sell it at the spot closing price on the day of delivery for the Community Foundation. The scale ticket will name the Community Foundation as the seller of the grain and the Community Foundation will receive the sale proceeds.

We invite you to join in giving back, getting connected and building a better community.

For more information, Contact Us.

Grain Gift Forms

Notice from the Producer (pdf) 
Instructions to the Grain Elevator (pdf)
Grain Gift Brochure (pdf)

Learn how one family’s gift of grain will benefit a community and education, forever.