What do you think of the idea a farmer giving grain to a church instead of cash? What are the pros and cons of doing such a thing?
Pros
- Taxes: Reduces tax bill. Where charitable contributions (cash donations) just reduce your income tax…if you itemize, grain contributions reduce income tax AND self-employment taxes.
- Maximize Giving: Because of the tax savings, the church can receive a greater share of the gift…without having to share it with the IRS.
- Giving and Work: I always wondered how you tithe on farm income. It’s complex, unpredictable, and sometimes negative. For me, I tithe right from my salary. I like seeing the paycheck and tithe hit my checking account on the same day. Donating grain or pledging the harvest of a number of acres would be similar for a farmer. As the LORD blesses your harvest, you can bless His work through the church.
Cons – ?? I’m not sure what the downside is.
Useful Links
- Info from the North Dakota Community Foundation: https://www.ndcf.net/give/gifting-agricultural-commodities.html
- From the Missouri UM Foundation: https://mumf.org/wp-content/uploads/2016/09/2016-Charitable-Gifts-of-Grain.pdf