Commodity gift program
A farm commodity, presented to Village Northwest Unlimited as a gift, may represent a special opportunity to make a donation and reduce your taxes if you are an operating, materially participating farmer (this arrangement does not apply to a crop-share landlord). Grain and livestock are the most common commodity gifts. Not only does Village Northwest Unlimited benefit, but your income is reduced, your production cost is deducted from your income, and you may qualify for other tax benefits as well.
How to give a commodity gift
Contact us when you have decided to make a commodity gift (grain, livestock, milk, honey, etc.).Village Northwest Unlimited staff will advise you regarding the simple procedure for completing the gift.
How it works
- As soon as you notify us of your decision to make a commodity gift to Village Northwest Unlimited, we will ask you to sell the commodity for us, acting as our agent.
- The buyer should be asked to make the check payable and mailed to:
VILLAGE NORTHWEST UNLIMITED
330 Village Circle
Sheldon, IA 51201
- Please have the buyer enclose the following items with the check: a scale ticket, auction receipt, or any other documentation of the transaction (quantity and condition of the commodity, name of the agent who delivered the gift on our behalf, etc.).
- Upon receipt of the proceeds, we will inform you that the transaction was completed.
- A charitable deduction is not to be claimed for this donation because the reduction in income fully accounts for the gift.
- The proceeds from your gift will be used to enhance the programs and services we provide at Village Northwest Unlimited.
- Your own financial tax adviser should be consulted to determine how this gift applies to your particular circumstances.
Advantages to you
- You participate in the fulfillment of the Village Northwest Unlimited mission to provide Purpose, Privacy & Dignity for adults with disabilities.
- By reducing your income, this gift procedure may benefit you by:
- Reducing your income tax obligation.
- Reducing your self employment tax obligation.
- A business deduction may be claimed for production costs, regardless of whether they occurred in the current or prior years.
- You do not need to itemize deductions to benefit from your gift.
- You can realize the benefits of this gift method even if you itemize deductions and are reporting other gifts up to or exceeding the allowable deductible amount for the tax period.
For answers to your questions, information, or an appointment, please call: Ryan Haack, Director of Development (712) 324-5405.