Did you know you can use grain as a way to give? Yes, you read that right. Grain. Grain farmers have a vital role in moving lives forward, growing food and feed that nourishes our community and the world. Gifts of grain are a unique and underutilized way to make a charitable gift. Using grain to make a gift can be a smart way to invest in the future while achieving tax savings and offers opportunity to nonprofits in agriculture states, like Ohio and others in the Midwest.
Benefits of Gifting Grain
You work, you plant, you nurture, and you grow. For farm operators, gifting grain directly may provide them with more significant tax savings than selling the grain and making a gift from the proceeds. The value of the grain can then be used to support charitable causes in a farmer’s community, support a specific nonprofit organization important to the farmer, or start an endowed fund in the name of the farmer’s family. For nonprofits willing to think outside the box for donations and gifts, gifting grain can offer a unique and additional avenue for fundraising. In places like Ohio, where agriculture is a significant portion of the state’s economy, gifting grain could be an untapped resource.
Contributing grain allows farmers to avoid the sale of the commodity as income, while the production costs may still be deductible. Reducing taxable income may provide advantages such as minimizing or eliminating self-employment tax and reducing adjusted gross income.
How It Works
Generally speaking, you deduct the cost of growing the crops which typically results in savings on self-employment tax, federal income tax, and state income tax. There is an opportunity to obtain these benefits, even if you don’t itemize your deductions and take the standard deduction. You pay self-employment, federal income, and state income tax based on adjusted gross income (less typical exemptions, deductions, etc.).
Donating a gift of grain is a simple way to make a lasting difference and for nonprofits it can be a game changer as another resource of giving. No matter what you chose to support, you can be sure that your gift of grain is growing the future of your community. For more information on how you can Give a Gift of Grain, contact your grain operator(s) or reach out to a member of our team for more information.
*Note, we are not tax professionals and do not provide tax, legal or accounting advice. Please, consult your own tax, legal and accounting advisors before engaging in any transaction.