A Harvest That Gives Back

Local farmers can support Veterans Memorial Hospital while potentially reducing their tax burden by donating grain or other commodities directly to the Veterans Memorial Health Care Foundation.

For eligible farmers, donating grain before it is sold can provide tax advantages compared with selling the grain and donating the cash. Because the donated grain is transferred directly to the Foundation, the farmer may avoid recognizing the grain’s sale as income, potentially reducing both income and self-employment taxes.

The Foundation sells the grain and the proceeds go to support local health care needs at Veterans Memorial Hospital and Clinics.

Here’s how it works: Before the grain is sold, the farmer instructs the elevator to transfer ownership to Veterans Memorial Health Care Foundation. The Foundation then handles the sale and provides the donor with acknowledgement of the gift.

For example, a farmer donating 1,000 bushels of corn valued at $4,000 could potentially realize significant tax savings compared with selling the corn and donating the proceeds. This tax benefit will vary depending on the farmer’s individual tax situation.

“A grain donation is a wonderful way for farmers to turn a portion of their harvest into an investment in the health of our community,” said Beth Shafer, Growth and Development Coordinator for the Veterans Memorial Health Care Foundation. “It’s a simple way to give, and the proceeds stay right here to support Veterans Memorial Hospital and the patients and families we serve.”

Farmers should consult their tax advisor and elevator to ensure the gift is structured properly. The grain must be transferred to the Foundation before it is sold to receive the potential tax benefits associated with a direct grain donation.

Give grain. Give local. Strengthen local health care. And potentially save on taxes.

For more information, please contact Beth Shafer at Veterans Memorial Hospital at 563-568-3411.