Gifts of Harvest
Gifts of Harvest Is a Charitable Contribution of Farm Commodities
As an active self-employed farmer, you may donate your commodity directly to the Foundation. You can exclude the sale of the cash crop from taxable income and deduct the cost of production, thereby reducing your tax liability. There is no deduction for a charitable contribution. Or, as a landlord or a non-active farmer, you may still designate a share of your sold crop to the Foundation. Designating a share of your crop is considered a cash donation, and if your taxes allow, can result in a charitable donation deduction.
Important Points to Know
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The farming donor must relinquish all “dominion and control” of the gifted commodity.
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All passage of risk and transfer of control must be transparent to the IRS. This is accomplished by documenting the transfer of ownership with a warehouse receipt or storage ticket issued to the charity, or a notarized letter of transfer for crops stored on your farm. Documentation is retained by the charity.
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This contribution releases the gift of any liens, garnishments or other encumbrances.
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The farming donor should not consult with the Foundation on market value or timing of sale after a gift has been given. The charity assumes the risk for storage, transportation and marketing costs, in addition to price risk.
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The gift should be from unsold crop inventory. No sale commitment should be made prior to the gift.
How to Donate Gifts of Harvest
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Inform the Enloe Health Foundation of your gift. Then ask your cooperative or elevator to create an account in the name of the Foundation.
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Transfer your commodity to the account with the Enloe Health Foundation listed as owner on the receipt.
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The Foundation will contact the elevator or cooperative to sell the commodity and a check will be issued. Upon receipt of check, you will receive an acknowledgment letter and follow-up from the Foundation.
*A donor should always consult with his or her tax advisor to determine tax implications prior to making a gift. This is not to be construed as specific tax advice. These are guidelines to assist in the mechanics of making charitable gifts of agricultural commodities.
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