11.08.22

Farmer’s Guide to Giving to the Fayette Community Foundation

Give the Gift of Grain 

We know that generosity, philanthropy, and collaboration are found here in Fayette County. You know what else is found in Fayette County?  Farmers! We live in a rural community with many families whose livelihood revolve around crops or other agricultural goods. In honor of harvest season, we created the Farmer’s Guide to Giving for those who grow crops and raise livestock.  

Many people don’t understand the value of agricultural goods. Livestock and grain do more than sustain our community; they promote the economy throughout our state and nation, which means that they have a substantial value. This is why we are highlighting this opportunity for farmers in Fayette County to give back to their community, not in the form of money, but in the form of grain or livestock. That’s not all– this gift doesn’t just benefit the community, it also helps the donor through tax benefits. Keep reading about donating from our Farmer’s Guide to Giving. 

Farmer’s Guide To Giving

The Gift of Grains and Bushels  

Imagine it’s harvest season, and you want to make a gift to the community, but your funds haven’t been liquidated. They are all tied up in farming equipment and other necessities. Many people would wait until they had funds to donate, but we have another option for our farmers: the gift of grain.  

When harvest season comes, instead of converting livestock, grain, or other agricultural products into cash, those assets can be gifted to the Fayette Community Foundation as a donation. If you are considering donating in the form of an agricultural product, simply follow these steps:   

  1. Contact the Fayette Community Foundation (FCF), a financial advisor, and a tax preparer about your donation.  
  2. FCF will establish an account with the purchasing facility you select.   
  3. Deliver products to the facility.  
  4. Complete any outstanding paperwork with FCF and the purchasing facility. Such as transferring the grain to FCF as a gift and sending the receipt to our office.   
  5. The proceeds will be sent to FCF and used as you choose according to the guidelines that FCF must follow.   

 

Harvest Can Benefit the Entire Community 

Harvest season is a time of abundance for many in our community, which is why we always encourage community members to give back. There are many ways to improve the community through the gift of grain. Once the gifts are processed and the proceeds are dispersed, a gift of grain acts like any typical donation. Donors of a gift of grain can choose to donate to an existing fund or create their own. Creating a new fund does require a minimum of $5,000 for a community grantmaking fund (or $10,000 for a scholarship), so if you are considering donating less than this amount, you would need to contribute to an already existing fund.   

Luckily for our amazing donors, there are six types of endowments they can create or donate to. Each of these endowment types meet different needs throughout our community. For example, scholarships empower young students to continue their education, unrestricted (or Community Impact) funds allow us to make flexible grants, and field of interest funds support the projects or initiatives that donors are passionate about. Learn more about the six types of endowment funds below:  

  • Community Impact – Allows for flexible grant-making and provides support for some of the community’s greatest needs.    
  • Field of Interest – Funds are distributed to the most appropriate program or project within the field designated by the donors.   
  • Designated – Provides annual grants to a specific charitable organization named by the donor.   
  • Donor-Advised – The fund donors are actively involved in an advisory capacity for distribution from this fund.   
  • Scholarship – Helps eager individuals reach their academic goals at accredited institutions of higher ed.   
  • Operational – Provides vital support for the operation of the foundation. 

 

Tax Benefits from Giving Grain 

Not only does a gift of grain support the community, but there may be tax benefits for the donor. Did you know that some farmers don’t pay federal, state, or self-employment taxes on a gift of grain? The gift is still counted towards production costs, and the tax savings from a gift of grain can be anywhere from 29.3-54.2%.  

Please note that the Foundation is not able to offer tax advice to any individuals or businesses. Gifts of grain may or may not be eligible for tax deductions– you should speak with your professional advisor and a tax professional about possible tax deductions and benefits. For more information about the gift of grain and how you can support Fayette County, give us a call.   

 

Get More Information 

Now that you know more about a Farmer’s Guide to Giving to the Fayette Community Foundation, consider making a one-time or recurring donation toward an existing fund by clicking here. The Foundation is dedicated to investing in and supporting our residents from cradle to career by connecting donors and nonprofit agencies. We help strengthen nonprofit agencies to better respond to community needs with financial support and capacity-building programs. We do this by providing grants from our unrestricted endowment and discretionary funds as well as from donor-advised funds.    

If you are looking for more information about the Fayette Community Foundation, check out our blog. We have dedicated this entire year to highlighting things found here in Fayette County. If you want to stay updated on everything found in Fayette County, sign up for our nonprofit newsletter.