Save taxes by donating grain or other commodities instead of cash

Local farmers can support Veterans Memorial Hospital (VMH) and save on taxes by donating grain or other commodities directly to the Veterans Memorial Health Care Foundation.

When a self-employed farmer donates grain instead of selling it and giving cash, the value of that grain is not counted as income - meaning no income or self-employment tax is owed. The Foundation sells the grain, and the proceeds go toward local health care needs.

To qualify, the grain must be delivered and ownership transferred to the Veterans Memorial Health Care Foundation before it’s sold.  To better illustrate this, a farmer donating 1,000 bushels of corn valued at $4,000 could save more than $1,700 in taxes compared to selling the grain and donating the cash. The farmer can still deduct all production expenses. 

To make a gift, simply tell your elevator to transfer a portion of grain to the Veterans Memorial Health Care Foundation. The Foundation will handle the sale and provide an acknowledgment letter. A tax advisor should be consulted to ensure proper handling. All gifts help strengthen local health care while the donor saves on taxes.

For more information, call Beth Shafter, Growth and Development Coordinator at VMH at 563-568-3411.