Gifts of Grain
Maximize your tax benefits while
supporting your favorite charities
The Friends of CMH Foundation is pleased to make our supporters who are agricultural producers aware of the tax savings available when charitable gifts are made using commodities. Replacing the cash donations you give to qualified charities each year with gifts of grain can increase the amount of tax savings that you realize through charitable giving. There are two reasons for this:
Giving a commodity means this is a sale that your business never realized. This income will not be recorded on your taxes and you will also save the money that you would have paid in self-employment tax on that amount.
Recent changes to federal tax laws have increased the federal standard deduction to $12,400 for an individual or $24,800 for a couple who files taxes jointly. That means your charitable gifts of cash/checks may not qualify to be itemized. Please check with your tax preparer to see how this change affects you.
Why Donate Grain?
By providing a gift of grain to the Friends of CMH Foundation, you are maximizing your impact on high quality local healthcare while minimizing the tax consequences of the grain that you've donated. Your crops are the result of the hard work you've invested in your farm operation. By providing a portion of what you've grown to the hospital Foundation, you're investing in the medical technology, equipment, and other resources that will sustain Community Memorial Hospital as a first class health care organization for generations to come.
How does it work?
Choosing to donate a gift of grain to a charity is simple.
To ensure compliance with tax laws, farmers wishing to donate a commodity should follow these steps:
- Notify the Friends of CMH Foundation of your intended gift by phoning or writing us. Describe what the commodity is and the quantity being contributed. Retain a copy of the letter for your records. (The gift should be from unsold crop inventory with no sale commitment made prior to the gift.)
- The Friends of CMH Foundation will set up an account at the elevator you intend to use.
- Transfer the grain as a gift to the Friends of CMH Foundation by having the elevator send a warehouse storage receipt to the Foundation. The elevator's receipt must show the Friends of CMH Foundation as the owner of the grain. Important: please notify the Friends of CMH Foundation when you have delivered the grain to the elevator.
- The Friends of CMH Foundation will provide you with a donation receipt for your gift. Do not report the donation on your tax forms as you are not entitled to any additional deduction. The tax benefit comes from deducting your production expenses as usual and not reporting the sale on Schedule F.
- The Friends of CMH Foundation will sell the grain and receive the sale proceeds. Any sales invoice will name the Friends of CMH Foundation as the seller of the grain. Per Internal Revenue Service (IRS) rules, it is necessary that the charity had 'dominion and control' of the commodity.
Disclaimer: This content is for informational purposes only and does not constitute legal or tax advice. Please consult your professional advisor for legal and tax advice specific to your situation.
Gifts of Grain serves as a way for agricultural producers to maximize tax benefits while supporting the Friends of CMH Foundation. How will you Touch a Life?
Friends of CMH
PO Box 148
Sumner, IA 50674
For questions about Gifts of Gran, contact Jenny Gade, Development Director, at (563) 578-2125 or at Jennifer.Gade@unitypoint.org.