Gift of Grain, Livestock and Farm Commodities

If you have grain, livestock or other farm commodities, you can donate them prior to sale, and you could be exempt from claiming it as income. You can claim the gift at the market price. The charitable deduction you receive can reduce your state and federal taxes, as well as your self-employment taxes. This savings also reduces your cost of making a charitable gift or could enable you to increase the amount you can give. When making your gift, please reference the Cru (Campus Crusade for Christ) Tax ID Number: 95-6006173.

Here is an illustration of how this works:

Jim and Jane Farmer wanted to make a $10,000 charitable contribution. They donated 2,000 bushels of corn at $5 per bushel.

Assuming Jim and Jane have not exceeded the self-employment tax limit, they will save 13.3% or $1,330 of self-employment tax. They will also save 25%, or $2,500 of federal income tax and 5%, or $500 of state income tax. Total tax savings is $4,330.

If they sold the corn and donated the $10,000, they could itemize the cash gift, but their tax savings would be only $2,500 (25% tax bracket). If unable to itemize, there would be no tax savings from a cash gift.

 

The benefit for Jim and Jane at harvest time is clear; they chose to give a portion of their corn to the ministry instead of cash, and here they saved $1,830. They now give this way on an annual basis.

For a more complete introduction to Gifts of Grain, Livestock and Farm Commodities, click here for "Keys to Effective Giving" which will provide you with a printer-ready explanation sheet to read and share with others.

To arrange an immediate gift, please contact our Great Commission Foundation toll free at (800) 449-5454, or email us at [email protected].