Gifts of Grain

Maximize your tax benefits while making a lasting impact on local healthcare.

The MDH Foundation is pleased to inform our agricultural supporters about the potential tax advantages of making charitable gifts using grain commodities. Replacing annual cash donations to qualified charities with gifts of grain can provide increased tax savings. Here’s why:

Income from gifted grain is not recognized on your tax return, meaning it is never reported as income. This can reduce your adjusted gross income and result in savings on income and self-employment taxes.
Recent changes to federal tax law have significantly increased the standard deduction for individuals and couples filing jointly. As a result, many taxpayers no longer itemize deductions, which means cash contributions may not provide a direct tax benefit. However, gifts of grain can still offer savings without the need to itemize.

Why Donate Grain?

By providing a gift of grain to the MDH Foundation, you’re maximizing your support of high-quality, local healthcare while minimizing the tax impact of your charitable giving. Your crops reflect the time, effort, and investment you've made in your farming operation. Sharing a portion of your harvest helps invest in medical technology, equipment, and programs that sustain McDonough District Hospital as a first-class healthcare provider for generations to come.

How Does It Work?

Donating grain to a charity is a simple process, but it must follow specific steps to comply with IRS regulations:

Notify the MDH Foundation of your intended gift by phone or in writing. Indicate the commodity and the quantity you plan to contribute. Retain a copy of your communication for your records. (Note: The gift must come from unsold crop inventory with no prior sale commitment).
The Foundation will set up an account at the elevator you plan to use.
Transfer the grain by instructing the elevator to issue a warehouse storage receipt showing the McDonough District Hospital Foundation as the owner.
- Important: Please notify the Foundation when you deliver the grain to the elevator.
The Foundation will provide a donation receipt for your records. Do not report this donation on your tax return, as you are not entitled to an additional charitable deduction. The tax benefit comes from deducting production expenses while omitting the grain sale from Schedule F.
The Foundation will sell the grain and receive the sale proceeds. The sales invoice will list the McDonough District Hospital Foundation as the seller, ensuring the Foundation has full "dominion and control" as required by IRS guidelines.

Always Consult a Professional

Every agricultural operation is different. Please consult your tax advisor to determine how a gift of grain may benefit your specific financial situation.

Gifts of Grain offer a smart and impactful way for producers to invest in their community’s health while enjoying meaningful tax advantages.

McDonough District Hospital Foundation
525 East Grant Street
Macomb, IL 61455
309-836-1757