Benefits of Gifting Grain
Gifts of grain are a unique and underutilized way to make a charitable gift. Using grain to make a gift to OSF HealthCare can be a wonderful way to invest in the future of healthcare, right here, in your community, while achieving tax savings.
For farm operators, gifting grain directly, rather than selling the grain and making a gift from the proceeds, may provide a more significant tax savings. Contributing grain allows you 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.
- Be sure the gift is grain commodities, not a grain storage receipt, which could be considered a cash equivalent. The OSF HealthCare Foundation must be able to demonstrate “control and dominion” over the gift property. Therefore, as a donor, you cannot offer the Foundation any guidance to when to sell the commodity.
- To make a gift of grain to any charitable organization, the taxpayer/donor must be a farm operator. There is no recognized income, but the charitable deduction is limited to basis, which is ordinarily zero. Typically your cost of raising and growing the grain can be deducted as a farm business expense.
- Many grain 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. You should be sure to accomplish the FSA certification BEFORE making a gift of grain.
- Please consult your tax professional for advice applicable to your particular tax situation prior to making a gift of grain commodities.
- Consult with your tax or financial advisor. OSF HealthCare Foundation and Farm Bureau employees do not provide tax or legal advice.
- Follow the Gift of Grain form and contact the OSF Holy Family Medical Center Foundation – Stephanie Hilten at (309) 734-1516 or Stephanie.L.Hilten@osfhealthcare.org
- Deliver the grain to your local elevator or co-op and tell them you wish to transfer ownership to the OSF HealthCare Foundation.
- Request a grain storage receipt showing the OSF HealthCare Foundation as the owner.
- Notify the OSF Healthcare Foundation at (309) 734-1516 when the transfer is made, indicating where the grain is being stored.
- The OSF HealthCare Foundation will then order the sale of grain.
- The OSF HealthCare Foundation will acknowledge your gift following the sale.