Consider a Gift of Grain

For farmers nearing harvest season, gifting grain directly to St. Cecilia Catholic Church may be a tax-efficient way to increase the impact of your charitable giving compared with selling the grain and then donating the cash proceeds.

When an eligible farmer sells grain and then donates the proceeds to charity, the sale generally results in taxable farm income and may also be subject to self-employment tax. However, eligible cash-basis farm operators who donate raised grain directly to a charity before the grain is sold may avoid recognizing the value of the donated grain as income, potentially reducing both income tax and self-employment tax.

To qualify as a gift of grain rather than a gift of sale proceeds, ownership and control of the grain must be transferred to the charity before the sale. Once ownership has been transferred, the charity must control the timing and terms of the sale.

For more information about making a gift of grain to St. Cecilia Catholic Church, please call our parish office at 402.463.1336. Tax benefits depend on individual circumstances, so donors should consult their tax or legal advisor before making a gift of grain.