Benefits of a Gift of Ag Commodities

When an agricultural producer transfers legal ownership of grain or livestock to a 501(c)(3) charitable organization such as the The Community Foundation affiliated fund before the commodity is sold, the producer will not realize taxable income from a sale, thus minimizing taxes. The producer is still able to deduct the entire cost of the production of the commodity on the producer’s Schedule F. Depending on the producer’s specific circumstances, savings may be realized on federal and state income tax and self-employment tax.

How to Make a Gift of Ag Commodities

A producer should consult with his or her tax advisor to determine whether a contribution of commodities is appropriate to their tax situation. The Community Foundation can help you make a gift of commodities to benefit your local community and get the desired tax treatment. Most importantly, you must provide written documentation to both NCF and the grain elevator or sale barn of the transfer of title of the commodity. The Community Foundation must be in control of the sale of the commodity.