Farmers, ranchers should think outside the checkbook for charitable giving

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Before charitable farmers and ranchers open their checkbooks this year, the Wayne Area Legacy Fund encourages thinking beyond cash, and opting to instead donate gifts of grain or livestock.

Grain futures are higher than they’ve been since 2013, and giving a portion of your harvest is a great way to share the bounty with the causes closest to your heart. By contributing commodities like corn or cattle, farmers and ranchers can save significantly on taxes while strengthening the mission of their local community fund.

Dan and Sarah Miller made a five-year pledge of gifts of grain to the Shickley Community Foundation Fund.

“Giving bushels of corn instead of dollars allows us to make a larger gift to our community fund because we can still deduct all our production costs on our income taxes. It’s a really smart way to give back,” Dan said

Instead of selling the ag commodity, the producer transfers ownership of the livestock or grain directly to Nebraska Community Foundation for the benefit of the Wayne Legacy Fund. The producer can then claim all their production costs as deductible expenses for income tax purposes. 

When a producer transfers legal ownership to a charity before it is sold, the producer will not have taxable income from a sale, thus minimizing taxes. Tax savings may be realized on federal income tax, state income tax and self-employment tax, depending on the producer’s specific circumstances.

It is important to first check with your professional advisor to determine whether a contribution of grain or livestock is appropriate for your tax situation. It is also important that you notify Nebraska Community Foundation in advance of making your gift of commodities as there are specific (but simple) procedures that must be followed. 

Gift of Grain and Livestock forms are available through members of the Fund Advisory Committee.

Those wishing to donate can visit Nebraska Community Foundation’s Gift Planning website – www.ncfgift.org – to download the necessary forms. You can also find details on the benefits and process of making a charitable gift of grain or livestock, as well as other out-of-the-box giving methods beyond cash. Nebraska Community Foundation is also always available to point you in the right direction at (402) 323-7330 or info@nebcommfound.org.

Nebraska Community 

Foundation

Nebraska Community Foundation unleashes abundant local assets, inspires charitable giving and connects ambitious people to build stronger communities and a Greater Nebraska.

Headquartered in Lincoln, the Foundation serves communities, donors and organizations by providing financial management, strategic development, education and training to a statewide network of 1,500 volunteers serving over 270 communities.

In the last five years, 45,915 contributions have been made to NCF and its affiliated funds. Since 1994, NCF has reinvested $423 million in Nebraska’s people and places. For information, visit NebraskaHometown.org.

Wayne Area Legacy 

Foundation

Wayne Area Legacy Foundation harnesses the power of giving to make the Wayne Area a great place for all ages to live, work and play for generations to come.

"We invite you to be a part of the legacy of promoting progress in our area by giving to the unrestricted endowment. Similar to a community savings account, unrestricted endowments are an important tool to keep hometowns across Nebraska growing, thriving and improving future generations. A portion of the income earned by the endowment is granted annually to fund projects and programs to benefit the community, the principal remains intact and grows every year," said Chairman Bill Dickey.

The Wayne Area Legacy Fund (WALF) has invested over $50,000 back into the Wayne Area community since the inception of the fund. The WALF is an affiliated fund of the Nebraska Community Foundation (NCF), a 501(c)(3) charitable organization. All contributions to WALF are tax-deductible. 

Visit WayneAreaLegacyFund.org for additional information. Be sure to like us on Facebook @WayneAreaLegacyFund.

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