Gifts of Grain
Build the future of young FarmHouse men with your agricultural gift! The FarmHouse Foundation accepts gifts of grain which may be designated to an educational program or fund of your choice. It is possible to save taxes by gifting crops, whether stored or newly harvested, to The FarmHouse Foundation before they are sold.
Why I made a gift of grain...
“My two sons and I are FarmHouse alumni and we wanted to give something back to FarmHouse for all that it had done for us. A gift of grain was a very easy thing to do, a matter of one or two phone calls and it was completely done. We wanted to start an endowment, so we gave two truckloads of corn in the Foundation’s name. Our goal is to continue to work towards trying to give an annual gift of grain that will someday have a significant impact.”
— Jeff Topp (ND ’79)
By gifting grain to the Foundation, you avoid including the sale of the agriculture gift in your farm income.
- If you itemize your taxes, you will receive a donation receipt from the Foundation for your tax purposes.
- If you do not itemize, the gift will reduce the income you have to pay taxes on.
- Expenses to grow the donated crop are not segregated out, so you still deduct the expense of raising your gift.
Your agricultural gift at work
Your investment will help grow the FarmHouse Foundation’s resources for leadership and educational opportunities such as:
- vital training for four chapter officers at the annual FarmHouse Leadership Institute;
- value-based educational programs such as the Regional Leadership Conferences, the Emerging Talent Retreat and Conclave;
- preparation for life after college through values-based development programs;
- much-needed scholarships to foster academic excellence;
- international study abroad opportunities and world travel experiences;
- chapter-based technological advancement to further support academic achievement;
- competitive and safe living/learning chapter housing; and,
- continued support of the International Office, our Staff and resources for programs not yet endowed.
How it works
- To make a gift of grain to a charitable organization, the taxpayer/donor must be a farm operator.
- The gift can be made from current or prior years’ crop.
- The gift must be from unsold crop inventory with no prior sale commitment, and not in warehouse receipts.
- Inform The FarmHouse Foundation of your intended gift of grain, your designation of choice and to receive the power of attorney/crop transfer document. Gifts of livestock are also accepted.
- The Foundation will set up an account at your preferred elevator.
- Deliver the grain to your preferred elevator.
- The grain will be transferred as a gift to The FarmHouse Foundation by having the elevator send a properly executed warehouse receipt to The FarmHouse Foundation. The elevator’s receipt must show The FarmHouse Foundation as the owner/seller of the grain.
- If not gifted through an elevator, a notarized letter of transfer, for crops stored on the farm, must be documented to The FarmHouse Foundation.
- Upon transfer, The FarmHouse Foundation assumes the cost of transportation, storage and marketing.
- Donors will receive a formal thank you letter of receipt from The FarmHouse Foundation once the gift and sale are finalized.
- Documentation - the FarmHouse Foundation will retain:
- Warehouse receipt or storage ticket in the Foundation’s name;
- The original sales invoice showing The FarmHouse Foundation as the seller; and,
- If crops are stored on the farm, a notarized letter of transfer will take the place of a warehouse receipt.
Important to Note:
- The donor cannot provide guidance in the transfer agreement as to the retention or sale of the gift commodity.
- The Foundation must have control and dominion over the gift.
- It is the Foundation’s policy to put in a sell order as soon as the gift has been transferred to its ownership.
- Making a gift of grain will not affect your yield histories in regard to crop insurance. You need to keep documentation from your grain elevator of the load donated to The FarmHouse Foundation and include the unit number on your copy of the receipt for the donated bushels.
- Many farmers annually certify or document bushels of production with a Farm Service Agency for purposes of enrolling that grain production in various agriculture subsidy programs. If you participate in these programs, you will need to complete the FSA certification before making a grain gift to any organization.
- As each individual farmer’s situation is different, you should consult your professional advisor for legal and tax advice on how a gift of grain or livestock to The FarmHouse Foundation may apply to your circumstances. Nothing in this brochure should be construed as providing you with legal or tax advice.