By donating grain or livestock, you provide for the many changing needs within VCHS and can save on self-employment tax, federal income tax and state income tax.
During times with prospects of a high yields, as well as good grain and livestock prices, many producers may be looking for a way to minimize their tax liability while making a significant charitable gift to their favorite non-profit.
Gifts of grain or livestock will be used to grow the VCHS Foundation's endowment or general fund, meet immediate needs within VCHS and encourage others to give back.
Local farmers donate gifts of grain to the Valley County Health System Foundation.
Guidelines for Donating
The producer should consult with a tax advisor to determine whether the gift is appropriate to their tax situation.
Specific steps are required by the IRS to ensure intended tax benefits.
The gift must be from unsold inventory, with no prior sale or pricing commitment.
The donation must be physically delivered farm commodities, not warehouse receipts, which could be considered cash equivalent.
WAIVER FROM LENDER
The grain cannot have a lien against it. If it does, a lien waiver from the lender is required. For animals, the producer must relinquish control and provide no guidance in the transfer agreement.
The producer should call us first to confirm the details prior to delivering or donating grain or animals.
After the transfer, the Foundation will assume cost of storage and marketing.
SELL & DISBURSE
The Foundation will work directly with the grain elevator or sale barn regarding the instructions to sell and the disburse the proceeds.