Gifts of Harvested Crops
Learn how giving harvested crops can allow farmers to support nonprofits they care about.
"In 1833, our ancestors came to Macon County in search of productive farmland. We have been blessed to raise not only great crops, but nine generations in the breadbasket of our country. Faith, family, and farming have been the foundation to our family legacy." - Former State Senator Duane and Tina Noland, HICF Donor Advised Fundholders and Gifts of Harvested Crops participants
Donating Harvested Crops
When it comes to giving, farmers are more frequently considering gifts of harvested crops as a way to support their favorite causes.
The Heart of Illinois Community Foundation partners with area farmers on this unique giving method, which offers benefits to both the farmer and the organizations they wish to support.
Crops are the most common agricultural asset that farmers donate.
You can make gifts of harvested crops such as grains, soybeans and corn, by delivering the crops to your preferred elevator (we have accounts at ADM, Topflight, Legacy and Heritage elevators).
Why Donate Harvested Crops?
Donating a gift of harvest crops to your Community Foundation is a simple way to make a lasting difference. The value of the harvested crop can be used to start an endowed fund in the name of your family, for a specific nonprofit organization important to you or to support charitable causes in your community. No matter what type of fund you chose to establish or support, you can be sure that your gift of harvested crop is growing the future of your community.
How Does It Work?
- Deliver the harvested crops to elevator (we have accounts at ADM, Topflight, Legacy and Heritage elevators).
- Ask elevator to transfer X number of bushels to the Heart of Illinois Community Foundation.
- The Foundation authorizes the sale of the harvested crop and receives the proceeds which can be placed in your fund.
- The Foundation provides an acknowledgement as evidence of the number of bushels transferred.
HICF must receive the harvested crop in its own account at the elevator and sell it in order to preserve your tax benefits. If you sell the harvested crop and transfer the proceeds, it is a taxable sale and a cash contribution to HICF. Please notify us so we know which elevator you're taking your crops to.
By giving crops to the Community Foundation, you avoid including the sale of the crop in your farm income. Although a charitable income tax deduction is generally not available to you, the avoidance of declaring it as income is a significant benefit. You deduct the cost of growing the crops which typically results in saving self-employment tax, federal income tax and state income tax. You can benefit even if you don’t itemize your deductions and take the standard deduction.
Financial Benefits
- Avoid selling the assets yourself and potentially avoid the taxes associated with the sale.
- Assets are sold tax-free by the HICF and proceeds are used to support your favorite causes.
- Agricultural assets can be used to establish gifts that provide you with income, such as a charitable gift annuity or charitable remainder trust.
Since each farmer’s situation is different, you should consult your professional advisor for legal and tax advice on how your gift to the Community Foundation may apply to your circumstances. Nothing on this page should be construed as providing legal or tax advice.
