CICF News

CICF News / 2012 / March / News Post
March 1, 2012
Farmers Support Central Indiana, Pay Less Taxes Via Gifts of Grain

INDIANAPOLIS, IN – Hoosier farmers can help their community while saving significant taxes by contributing commodities such as corn or soy beans to any charitable fund of Central Indiana Community Foundation (CICF).

With today’s high prices and a positive outlook for commodity markets, many farmers are considering gifts of grain to fulfill their charitable intentions. Giving bushels of corn instead of dollars allows them to make larger gifts that honor their heritage while contributing to issues or not-for-profit organizations important to them.

When a farmer transfers legal ownership of a commodity to CICF before the commodity is sold, the farmer does not have taxable income from the sale and consequently, minimizes taxes. Depending on circumstances, farmers may realize savings on federal and state income tax and self-employment tax, and can still deduct the costs of production.

Farmers may state or designate a portion, percentage or dollar amount of the grain be contributed to a charitable fund while delivering at a grain elevator at any time throughout the year.

Craig Wallace, owner of Wallace Grain Company in Sheridan, Indiana, first discussed a gift of grain with Legacy Fund, an affiliate of CICF, in the fall 2011. The tax savings were so compelling that he convinced two additional farmers to join him. Wallace contributed soybeans for a scholarship fund in the name of his parents. He convinced another farming family to make similar gifts into their family charitable fund with CICF. After the ownership of the grain was transferred, it was sold by CICF and the proceeds were placed in the designated funds.

“Gifts like Craig’s make incredible sense,” said Terry Anker, President of Legacy Fund. “First and foremost, gifts of grain enable farmers such as Craig to give back to their community and make a real difference. They may also provide financial and tax-based benefits for the donor, and that’s especially important in today’s economy.”

CICF can accept gifts of grain directed to any charitable fund. Since specific procedures must be followed to obtain the desired tax treatment of a gift of grain, farmers should notify CICF before making a gift of commodities.

Farmers should consult with their accountant or tax advisor to determine whether a contribution of commodities is appropriate to their tax situation. For information on gifting gifts of grain, contact: Jan Edmondson, Senior Gift Planning Advisor, CICF, 317.634.2423 ext. 510 or jane@cicf.org.