The Greene County Medical Center Foundation is pleased to renew their partnerships with agricultural producers who wish to support local healthcare through the gift of grain.
Significant tax savings can be realized by replacing cash gifts to charitable organizations with that of a commodity. There is no recognized income, but the charitable deduction is limited to basis, which is ordinarily zero. Typically, the cost of raising and growing the grain can be deducted as a farm business expense. The donation must be itemized on the donor’s tax returns to save on self-employment taxes along with federal and state income tax.
“We know harvest is when farmers begin to reap the benefits of the hard work they have put into their operation. This is also a time when producers determine the scope and direction of their charitable giving,” says Greene County Medical Center Foundation director Nancy Houska. “By making a gift of grain to the Foundation, you are investing in the highest quality healthcare in the region, now and for years to come. Your support aids us in attaining the Greene County Medical Center’s Vision of being Always Here, Always Caring.”
A key factor for the donation of crops is that the farmer must give up “dominion and control” of the asset. The donation must be in the form of the grain itself. These are the steps to be taken:
–The farmer should notify the Greene County Medical Center Foundation (515-386-0108) of their intentions and include the amount and type of commodity and the location to where it will be delivered. Producers need to retain a copy of this for their records.
–The grain is delivered to the local elevator or coop and a request made for the transfer of a specific amount of the commodity to the Foundation.
–The farmer asks for a warehouse receipt showing Greene County Medical Center as the grain recipient.
–Notify the Foundation (515-386-0108) and confirm the amount and location of the grain. The Foundation will then order the sale of the grain with the original sales invoice.
–The Foundation will provide a gift acknowledgement and receipt for your tax preparation.
Always consult your professional legal or tax advisor to determine the benefits and implications of such a donation.
