Gift of grain helps Indiana farmers grow community impact

KOKOMO, Ind. — Did you know that farmers can donate land, grain or equipment directly to their local community foundation?

For many community foundations, these types of gifts may be eligible for local matching opportunities that help a farmer’s contribution go even further.

Farmers interested in maximizing their charitable impact are encouraged to reach out to their local community foundation to learn what opportunities may currently be available.

“Farming is about preparing, planting, nurturing and watching things grow, and community foundations do the same with the charitable gifts entrusted to them,” said Isabella Chism, a farmer and member of the Community Foundation of Howard County board of directors.

“Farm families have always taken care of their own communities,” said Maddison Miller, vice president of external relations at Indiana Philanthropy Alliance.

“A quick call to your local community foundation can help you understand your giving options and any match opportunities they may offer.”

A Simple Process

One way farmers can contribute to community endowment funds is through a gift of grain — a charitable giving strategy that allows producers to donate unsold grain inventory directly to a community foundation.

To participate, farmers first notify their local community foundation of their intention to donate grain. The foundation then establishes an account at the local elevator.

The farmer transfers ownership of the grain to the foundation, often through a warehouse receipt showing the foundation as the owner.

The foundation then sells the grain and uses the proceeds according to your charitable intent — for example, supporting local FFA chapters and 4-H programs, contributing to an existing agricultural fund, or establishing a scholarship in your family’s name.

It’s an opportunity to ensure the values and traditions of farming thrive in the next generation.

Donating equipment follows a similar process: Contact your local foundation first for instructions to transfer ownership prior to sale.

Because the grain is transferred before it is sold, the donation generally does not count as taxable income to the farming operation, while production costs can still be deducted.

Depending on the farmer’s tax situation, the savings can be significant. The foundation provides an acknowledgment and receipt for your tax records.

Gifts of grain can come from either the current or previous year’s harvest, though donations from prior-year unsold inventory often provide the best tax results.

Long-Term Support

Donations made to an unrestricted endowment are invested permanently, with a portion of the earnings used each year to support local projects such as education, health initiatives, economic development and housing.

Over time, these funds create a lasting source of support for local priorities. Gifts given through your local community foundation stay in your county to benefit the people and places you care about most.

For example, through a gift of land, the Montgomery County Community Foundation has seen strong agricultural involvement in their charitable activities.

The foundation is the beneficiary of three farms totaling roughly 600 acres, which are managed locally and help fund community needs, rural health initiatives and scholarships.

The opportunity is available statewide, though each community foundation manages its own fundraising timeline, giving options and match availability.

Every farm and every foundation is a little different, so a quick call with your accountant and your local foundation helps you set it up right.

Farmers interested in participating are encouraged to contact their local community foundation as soon as possible to learn about opportunities and deadlines.

Find your local community foundation at inphilanthropy.org/legacy.