Gifts of grain are a unique and underutilized way to make a charitable gift. Using grain to make a gift to North Dakota State University can be a wonderful way to invest in the future while achieving tax savings.
Benefits of Gifting Grain
For farm operators, gifting grain directly, rather than selling the grain and making a gift from the proceeds, may provide a more significant tax savings.
Gifting grain allows you to avoid the sale of the commodity as income, while the production costs may still be deductible.
Reducing taxable income may provide advantages such as minimizing or eliminating self-employment tax and reducing adjusted gross income.
How to Make a Gift of Grain
- Consult with your tax or financial advisor. The NDSU Development Foundation and its employees do not provide tax or legal advice.
- Contact the NDSU Development Foundation at 800.279.8971 or mail, fax or email a Gift of Grain Notification Form to the NDSU Development Foundation to ensure the proper steps are taken for your gift of grain.
- Deliver the grain to your local elevator or co-op and tell them that you wish to transfer ownership to the NDSU Development Foundation.
- Request a grain storage receipt showing the NDSU Foundation as the owner. The elevator should refrain from selling the grain or issuing a check to the foundation wtihout specific instructions from the NDSU Development Foundation.
- Notify the NDSU Development Foundation at 800.279.8971 when the transfer is made, indicating where the grain is being stored.
- The NDSU Development Foundation will then order the sale of the grain.
- The NDSU Development Foundation will acknowledge your gift following the sale.