Gifts of Grain
by Kristi Potts on 07/18/13
YMCA Corner
The
YMCA would like to announce the start of the Gifts of Grain donation program.
Deliver
the grain to your local elevator and ask them to provide a warehouse receipt
showing the Montgomery County Family YMCA Endowment Foundation as the owner.
Contact the YMCA and let them know where the grain is stored. The YMCA will
then order the sale, with the original sales invoice.
Note:
To qualify for the highest tax savings, crops must be donated from the previous
tax year. Gifts of grain grown in the current year are welcome, but do not
incur the same tax advantages.
The
farmer must make a charitable “donation,” giving up “dominion and control” in
the asset. The typical procedure of a farmer delivering, selling and ordering
the proceeds sent to the charity does not work. It can result in the
transaction being considered a cash sale and cash donation since the farmer has
not given up control of the property. Instead, the property should be delivered
and a warehouse receipt showing the Montgomery County Family YMCA Endowment
Foundation as the owner should be executed. The Foundation then would order the
sale of the property, with the original sales invoice showing the Foundation as
the seller. The farmer should avoid advising the charity as to when to sell the
crops, as that may be construed by the IRS as “retaining control.”
The
Montgomery County Family YMCA Endowment Foundation will retain in its files the
warehouse receipt or storage ticket in the Foundation’s name and the original
sales invoice showing the Foundation as the seller. If the crops are to be stored on the farm, a
notarized letter of transfer can take the place of a warehouse receipt. After
the transfer, the Montgomery County Family YMCA Endowment Foundation should
assume costs of storage, transportation and marketing, and bear any risk of
loss.
The
farmer should always consult with his or her professional tax or legal advisors
to determine tax implications prior to making the gift. Because of rapid
changes in tax law, information provided here may be obsolete.
The
Montgomery County Family YMCA is a 501(c) 3 organization with an established
endowment program in place that funds opportunities for the Y, members,
volunteers, programs, facility care and enhancements to the Y facility. To
learn more about the YMCA’s Gift of Grain program, please contact Nick Zimmer,
Executive Director at the YMCA at 712-623-2161 ext. 13.
Download the PDF Brochure with more information! http://www.mcymca.com/News/Summer2013/GiftsOfGrain.pdf
