Give the Gift of Grain

Tuesday, 23 October 2012
An abundant harvest can also yield the ability to provide a generous gift to the hospital’s foundation to continue to grow and enhance local healthcare services. The Spencer Regional Healthcare Foundation has worked with local grain elevators to establish accounts and is encouraging donations of grain to support the Foundation’s mission of enhancing healthcare locally.
There are a few ways a donor may choose to give a gift of grain. For example, a farmer may choose to sell the grain and instruct the elevator to send a specific dollar amount or proceeds from a designated number of bushels, directly to the Foundation. However, this typical procedure is considered assignment of income, because the farmer has not given up control of the property, and will result in payment of self-employment tax.
However, for many cash basis farmers, significant tax savings can be achieved by donating crops directly to the Foundation. This way, a donor can avoid including the sale of the grain in their farm income. And although a charitable income tax deduction is generally not available, the avoidance of declaring it as income is a significant benefit. Donors can deduct the cost of growing the crops which typically results in saving self-employment tax, federal income tax and state income tax. A donor can benefit even if they don’t itemize deductions and take the standard deduction. 
“This is such a tremendous opportunity for the farmer and the Foundation to work together,” explains Mindy Gress, Executive Director of the Foundation. “The gifting of grain provides a very unique opportunity for giving and also offers exciting tax savings to the donor.”
It is important to remember that the gift should be from unsold crop inventory, with no prior sale commitment. A farmer will gift the grain to the Foundation and let the Foundation decide what to do with it and when to sell it. This allows the Foundation to demonstrate “control and dominion” over the gifted property, thus allowing significant tax savings to the farmer.
“What a way to improve the health of the Hospital,” said Dave Hessman, retired Farm Manager and friend of the foundation. “If a farmer wants to do something for the community, I can’t think of anything better than dumping some grain for the benefit of the Hospital.”
For more information on giving a gift of grain, or to learn of other opportunities to support the Foundation please contact the Foundation at 712-264-6226.

Last updated ( Wednesday, 16 October 2013 )

Mindy Gress
Executive Director
Spencer Regional Healthcare Foundation
Spencer Hospital
Spencer, Iowa 51301

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