Active Farmers and Ranchers
If there were a way for you to make a charitable gift that provides for your future financial security and ours, would you be interested? If so, consider a gift of grain to establish a deferred charitable gift annuity with us.
Example
Bill and Ginger Ackerman are wheat farmers and longtime donors. They had a productive crop this year and wanted to share their bounty. At the same time, one of their financial planning goals included storing up resources for their retirement years. When they asked to visit our staff, we explained how they could accomplish their charitable and retirement planning goals with a deferred charitable gift annuity.
The Ackermans liked the idea and decided to give $10,000 of grain to us in exchange for a gift annuity. The annuity will pay them between 5% and 9%, depending on when they choose to start receiving payments. They delivered the grain to the local elevator operator and requested a storage receipt naming us as owner.
Considerations
- This charitable giving strategy is only for cash basis farmers.
- You will not receive a charitable income tax deduction; however, the value of the gifted grain will not be included as income on your Schedule F.
- You can still deduct the cost of growing the crops on your Schedule F, including income and self-employment taxes.
- Gifts must come from unsold crop inventory.