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Thursday, Apr. 28, 2016

The Gift of Grain

Wednesday, September 15, 2010

MMC Foundation encourages farmers to participate

MARCUS - The Marcus-Meriden-Cleghorn Foundation is providing an opportunity for farmers to join in the effort of providing scholarships for MMC graduates who wish to further their education at the post-secondary level. The donation of grain will provide a significant tax savings.

Cash charitable contributions are deductible only as an itemized deduction from adjusted gross income, which results in reducing federal income tax only. Many farmers do not itemize deductions because the standard has greatly increased over the years.

By contributing crops to the MMC Foundation, the cash basis farmer avoids including the sale of the cash crop in his/her income which results in saving self-employment tax, federal income tax and state income tax. The cash basis farmer may still deduct the cost of growing the crop.

When delivering the donated grain to the local elevator for sale, the farmer would fill out an "Authorization of disbursement of Grain funds" which authorizes the elevator to record the amount of bushels to the account of MMC Foundation.

Some tips for making gift of grain are as follows:

The gift should be from unsold crop inventory with no commitment made prior to the gift; the farmer notifies the MMC Foundation. Be sure the gift is farm commodities, not warehouse receipts which could be considered a cash equivalent. The charity must be able to demonstrate "control and dominion" over the gifted property. Either a properly executed "warehouse receipt" in the name of MMC Foundation or a signed "Authorization of disbursement of Grain Funds" will be required. The original sales invoice should list MMC Foundation as the seller. The farmer should always consult with his/her tax professional or legal advisor to determine the tax implications of this process prior to making the gift.

Cash donations are also accepted. For more information, call Renea Ogren at 376-4171.

Be sure you fill out the authorization form which will ask for your account number and said amount of bushels. The forms will be at each business accepting grain from farmers which will include Remsen, Oyens, Cleghorn, Meriden, Cherokee, Granville and Marcus.

At the end of each fiscal year, the MMC Foundation will use the money for scholarships or teacher grants. Those who donate will have their names engraved on the plaques inside the high school under the dollar value amount.



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