Giving Grain at Harvest Time

Harvest is underway across central Kansas, and for farm families in our congregation, this season opens a giving option many producers have never considered: a gift of grain. Donating wheat or other commodities directly to the church, rather than selling the grain and donating the cash, can support the ministry you love while reducing the income tax you owe. This article explains how it works. It is information to consider, not a request.

Why a Gift of Grain Can Save on Taxes

When you sell your grain and then donate the proceeds, the sale counts as income on your tax return. You may take a charitable deduction, but the grain sale still raises your taxable income, your self-employment tax, and sometimes your Medicare premiums and other thresholds tied to income. When you instead give the grain itself to the church before it sells, you never recognize the sale as income. You still deduct the cost of producing that grain as a normal business expense. For many producers, avoiding the income altogether is worth more than a deduction would have been.

How a Grain Gift Works

The key is that the church must own the grain before it is sold. A few simple steps make that happen:

Step 1: Decide how many bushels you want to give, and let the church office know a gift is coming so we can plan for it.

Step 2: Deliver the grain to the elevator in the name of McPherson First United Methodist Church, or transfer ownership of stored grain to the church. Tell the elevator the bushels belong to the church, with no sale price set by you.

Step 3: The church takes ownership, then directs the sale and receives the proceeds. You keep the warehouse receipt or delivery documentation for your records.

Because the timing and paperwork matter, talk with your tax professional and your elevator before you deliver, so the transfer is documented correctly.

Who Can Help

The church office at 620-241-3626 can walk through the steps and coordinate with the elevator. Kansas Methodist Foundation assists with gifts of grain, stock, and other assets and can be reached at 620-664-9623. Always consult your own tax professional or financial advisor about your specific situation; this article is general information and not tax advice.

God has been generous with the harvest, and the fruit of your fields can become a lasting blessing to the ministry we share. If a gift of grain might fit your plans this season, the church office and Kansas Methodist Foundation are glad to help you take the next step.