The Ag Giving Circle
Gift of Grain
Porter County farmers have a unique opportunity to support families in their community by donating grain to the Porter County Community Foundation and becoming a member of the Ag Giving Circle. This Giving Circle has been established to support Promise Porter County, a comprehensive community partnership that links elementary school students with a College Choice 529 Savings Plan. The program also includes a curriculum based emphasis on the importance of education after high school and a visit to a local college.
What farmers are doing is pretty special. Upon delivering grain to the elevator, they now have the opportunity to designate a portion of the load to the Porter County Community Foundation. The Foundation then sells the grain and deposits half of the proceeds into the Promise Porter County Fund, and the other half into the Agricultural Community Initiative Fund.
A gift of grain can be an easy, tax-efficient way to support this important initiative.
Frequently Asked Questions
How is donating grain better than making a cash donation?
A cash-basis farmer can deduct full production costs on the donated bushels without realizing the taxable income from the sale. This results in savings on Federal, State, County, and Self-employment taxes which would typically amount to more than a standard charitable deduction for a cash gift.
Can a crop-sharing arrangement benefit from this type of donation?
No. Shares of crop are considered rental income and must not be reported as such.
Can I sell the grain, order the proceeds be sent to the Foundation, and still get the same tax benefit?
No. This would be considered a cash donation and would not qualify for the same tax benefits as donating and giving up control of the actual product prior to the sale.
Do I assume any risk between the time I donate the grain and the time the Foundation sells it?
No. The Foundation assumes all risk immediately upon the donation of the product.
Can I store grain on my farm and still make a gift to the Community Foundation?
Yes. You must execute a notarized "Grain Transfer Authorization" form to the Foundation in place of the elevators warehouse receipt.
Can a farm C-corporation benefit in the same way as a sole proprietorship?
C-corporations are treated differently from a tax perspective. Consult your tax professional for guidance in your specific situation.
Will the Gift of Grain count as income in government payments limitation caps?
No. A gift of grain does not count as income in your government payments limitation caps calculation.
Can I designate the school corporation whose students will benefit from my gift?
Yes. All school corporations in Porter County are involved in this program and your gift can be designated accordingly.
Can I support Promise Porter County in other ways?
Yes. Contributions to this initiative can be made using cash, transfer of appreciated securities or real estate, an IRA rollover (if you are 70 1/2), or through a future planned gift. Contact the Foundation to discuss these options.