Gifts of Grain A great way to contribute to your local Community Foundation Fund

A “Gift of Grain” to a favorite charity is a good way to maximize a contribution, if one is a crop producer. One can deliver grain to the local elevator and transfer ownership to the Nebraska Community Foundation to support the Perkins County Community Foundation Fund, PCCFF. 

The benefits of a gift of grain include zero income tax on the production gifted and no self-employment tax, depending on the producer’s specific circumstances.  In addition, the producer can still claim the expenses on the unit of production gifted.  As a result, the contribution is more valuable than a cash contribution.  The tax legislation of 2017 also doubled the standard deduction, reducing the value of itemized deductions, therefore making a gift of grain really useful.

Producers should check with their professional advisors to determine whether a contribution of commodities is appropriate to their tax situation. They should then notify the Nebraska Community Foundation in advance of making the gift, as there are specific procedures that need to be followed to obtain the desired tax treatment.

For a gift of grain, the ownership can be transferred to the Community Foundation Fund at the time of delivery. Or if grain is already in storage, ownership can also be transferred. Of course, the grain must be “open” and not under contract.

Gifts of livestock are also an option using similar procedures.

Gifts of agriculture commodities to support PCCFF are not only a tax-wise way of giving, they are an important way to invest in the future, because the local Fund is building an endowment that will generate revenue for generations.

Instructions and documenting forms for gifts of grain are available from Michelle Ross, PCCFF treasurer, at Pinnacle Bank in Grant or at 75785 Road 344, Elsie, Nebraska 68134, phone 308-882-8469.

For gifts of ag commodities to other charities, one should contact the charity directly. 

The author is Dennis Demmel, chairman of PCCFF. The Perkins County Community Foundation Fund maintains an unrestricted endowment fund to support projects that provide positive community impact. PCCFF has a vision of “promoting vibrant communities and a high quality of life. Local government and nonprofit entities can apply for grant funding from the Fund. For grant applications or to make contributions contact Treasurer Michelle Ross at 75785 Road 344, Elsie, NE 68134 or 308-882-8469 or michelle.ross@pinnbank.com. The PCCFF is a nonprofit 501c3 affiliate of the Nebraska Community Foundation.