Gifts of Ag Commodities

Nebraska farmers and ranchers can save significant taxes by contributing commodities such as corn or cattle to their community foundation fund instead of making a cash contribution after selling the commodities. Download our Gifts of Grain and Livestock brochure.

Benefits of a gift of ag commodities

When an agricultural producer transfers legal ownership of grain or livestock to a 501(c)(3) charitable organization such as the Nebraska Community Foundation or for the benefit of one of NCF's affiliated funds before the commodity is sold, the producer will not realize taxable income from a sale, thus minimizing taxes. The producer is still able to deduct the entire cost of the production of the commodity on the producer's Schedule F. Depending on the producer's specific circumstances, savings may be realized on federal and state income tax and self-employment tax.

How to make a gift of ag commodities

A producer should consult with his or her tax advisor to determine whether a contribution of commodities is appropriate to their tax situation. The Nebraska Community Foundation can help you make a gift of commodities to benefit your local community and get the desired tax treatment. Most importantly, you must provide written documentation to both NCF and the grain elevator or sale barn of the transfer of title of the commodity. The Nebraska Community Foundation must be in control of the sale of the commodity.

For assistance with a gift of commodities contact Les Long, Controller, 402-323-7346 or [email protected].

More on gifts of ag commodities

See Steps to Make a Charitable Gift of Grain or Steps to Make a Charitable Gift of Livestock for information on making a gift of ag commodities.