Gifts of Grain

A gift of grain to the ARL may allow you to reduce taxable income by avoiding the income that would have been generated by the sale of the grain on your income. Since the income from the sale of grain would also have resulted in self-employment, federal income, and state income taxes on that income, a gift of grain may result in triple tax savings while also allowing you to deduct the costs of producing the grain.

If you are interested in making a gift of grain to the ARL, please consult your financial, tax, or legal advisor before making a gift to seek advice on how a gift of grain may apply to your circumstances, timing of the gift, and provide potential tax benefits.

1. Consult with your financial, tax or legal advisor to determine tax implications prior to making a gift.
2. Contact us to let us know of your intent to make a gift and to ensure the appropriate steps are taken for your gift.
3. Deliver your grain donation to the elevator and tell them you wish to transfer ownership of X amount of grain to the Animal Rescue League of Iowa. Request that the storage receipt be made out to the Animal Rescue League of Iowa, Inc. Instruct the elevator not to sell the grain until they have been contacted by a representative of the ARL to direct the sale the grain by the ARL.
4. Notify us that the grain is at the elevator. The ARL will then contact the elevator to direct the sale and the ARL will send you an acknowledgement letter.

• You may need to certify your production to the FSA or document bushels of production with FSA through your participation in various agricultural subsidy programs before donating the commodity to protect their yield basis.
• If an actual transfer does not occur, the IRS may deem the transaction to be a transfer of the proceeds of the sale, not a contribution of the commodity itself. This will defeat the tax benefit of the transfer.
• Donors must be farm operators to make a gift of grain. Crop share landlords likely will not be able to recognize the tax benefits of a gift of grain.
• In order to receive the tax advantages described above, producers need to be able to show that you gave up “dominion and control” over the grain.

• Once ownership of the grain has been transferred to the ARL, the donor cannot be involved in directing the elevator to sell the grain or in advising the ARL on when to sell the grain.
• We ask that the producer send a letter to the ARL that describes the commodity (grain) and the quantity being gifted to show that the has transferred ownership and control over the grain. given up “dominion and control” over the grain. The letter should also indicate the name and contact information of the elevator where the donor will deliver the grain.
• Be sure the gift is grain commodities, and not a grain storage receipt. A grain storage receipt could be considered a cash equivalent.

You may also be eligible to receive a 25% state tax credit if you choose to give the gift of grain to our endowed fund.