Gifts of commodities
The U of M Foundation is prepared to accept gifts of commodities at any time of the year. Gifts of commodities may provide significant tax savings, depending on the donor’s individual circumstances. For example, a donor may be able to avoid taxable income from the sale while still deducting the production costs if the commodity is given to the U of M Foundation before it’s sold. Avoiding taxable income on commodities may reduce self-employment and other taxes while also reducing adjusted gross income.
Donors should consult with their tax or legal advisors to determine how potential tax savings may apply to them. Donors should follow the instructions below to ensure the maximum tax benefits when making a gift of commodities. The U of M Foundation also asks that donors contact UMF for a sample letter stating their intent to make a gift of commodities. In addition, donors should contact the grain elevator for any specific instructions it may have.
Instructions for donors making gifts of commodities
1. Consult with your tax or legal advisor regarding this gift option and how it may affect you. The University of Minnesota Foundation and its employees do not provide tax or legal advice.
2. Upon delivery of the commodity to the grain elevator, you should make sure that ownership is transferred to the University of Minnesota Foundation and that the transfer is reflected on the elevator receipt. If an account does not already exist at the elevator, you should provide the elevator with the following information:
University of Minnesota Foundation
Attn: Accounting Department
200 Oak Street SE, Suite
500 Minneapolis, MN 55455-2010
Tel 800-775-2187 or 612-624-3333
3. You should then provide the U of M Foundation with the receipt and a letter notifying UMF that the commodity is the property of the U of M Foundation. Contact the UMF planned giving team for a letter template.
4. Upon notice of the transfer, the U of M Foundation will direct the sale of the commodity.
5. The elevator will send the U of M Foundation the settlement statement and check.
6. The U of M Foundation will provide you with a receipt.
Information on this website is not intended as legal or tax advice. For information on how any gift may affect your tax situation, please consult with your own professional advisor.