Gifts of Grain: Give more to your community. Pay less in taxes.
Dan and Sarah Miller
With today’s high prices and a positive outlook for commodity markets, many farmers are considering gifts of grain to fulfill their charitable intentions.
When a farmer delivers grain to market and transfers ownership to a charity, they get greater tax savings than if they sell the commodity and then write a check from the proceeds.
The Nebraska Community Foundation makes it easy for ag producers to make charitable donations.
Dan and Sarah Miller have made a five-year pledge of gifts of grain to the Shickley Community Foundation Fund. Dan is Chair of the Fund, and he says that other members are making similar pledges.
“Giving bushels of corn instead of dollars allows us to make a larger gift to our community fund, because we can still deduct all our production costs on our income taxes. It’s a really smart way to give back,” Miller said.
A producer should consult with their tax advisor to determine whether a gift of grain is appropriate for their tax situation. Then call the Nebraska Community Foundation, because certain steps are required to ensure the intended tax benefits. It is important that the grain is delivered but not sold. Instead, ownership is transferred to NCF for the benefit of an NCF affiliated fund. NCF will communicate directly with the grain elevator with instructions to sell the grain and disburse the proceeds.
Find out more about making a tax-deductible and tax-wise gift of grain.
In the photo: Dan, Hannah, Hailey and Sarah Miller of Shickley.
