Farmers help our communities thrive in countless ways. Through hard work, care for the land and generosity toward their neighbors, they contribute far beyond the farm.

A gift of grain or livestock offers another way to make a difference. By donating commodities to the Community Foundation of Northeast Iowa (CFNEIA) before they are sold, you can support the causes and communities you care about while potentially receiving valuable tax benefits.

Give from Your Farm, Invest in Your Community

Your gift can support a charitable fund established by you or your family, a fund benefiting a specific nonprofit, or a fund addressing needs and opportunities in your community.

Whether you want to support local students, strengthen a favorite nonprofit or invest in your hometown’s future, CFNEIA can help connect your generosity with your charitable goals. Our personalized service and knowledge of local needs can help your gift make a difference today and, through an endowed fund, for generations to come.

Benefits of Giving Grain or Livestock

Potential tax savings. Eligible farmers who use the cash method of accounting and donate grain or livestock they raised may avoid recognizing income from the donated commodities. This may reduce adjusted gross income, income tax and self-employment tax. Ownership must transfer to CFNEIA before a sale is arranged, and CFNEIA must control the sale.

Deductible farm expenses. Eligible production expenses associated with raising the donated commodities may remain deductible as ordinary farm business expenses. For raised commodities whose production costs have already been deducted, farmers generally do not also claim a charitable deduction for the commodity itself.

Meaningful community impact. CFNEIA sells the donated grain or livestock, and the proceeds support the charitable fund you select. Your farm’s production becomes a resource for the nonprofits and communities that matter to you.

Potential Endow Iowa tax credit. Gifts to a qualifying permanent endowment may also be eligible for a 25% Iowa income tax credit through Endow Iowa, subject to program requirements and credit availability. Our team can help you explore whether your intended gift qualifies.

How to Get Started

Start by contacting CFNEIA before selling or arranging the sale of the grain or livestock you wish to donate. Our team will help you identify the fund you want to support and coordinate the ownership transfer and sale process.

Talk with your tax advisor before making your gift to determine how the benefits apply to your farm operation and ensure the transfer is completed correctly.

Your harvest can help grow something lasting beyond the farm. Contact the Community Foundation of Northeast Iowa at give@cfneia.org or 319-287-9106 to explore how a gift of grain or livestock can strengthen the community you call home.

Each individual farmer’s situation is different. You should consult your professional advisor for legal and tax advice on how a gift of grain or livestock to the Community Foundation of Northeast Iowa may apply to your circumstances. Nothing in this article should be construed as providing you with legal or tax advice.