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Farm Assets

Tractor and hay bales in a field

Charitable Gifts Of Crops, Livestock And Machinery

Every year farmers sell crops, livestock and machinery. These valuable assets often result in sizable tax bills, which can make farm planning more complex. These same farmers are looking for ways to support their favorite causes. And they aren’t limiting themselves to gifts of cash. They are giving crops, livestock and machinery directly to nonprofits and avoiding the taxation associated with selling the assets themselves.

Crops, livestock and machinery can make excellent charitable gifts.

At the Saint Paul & Minnesota Foundation, we’ve been helping Minnesota farmers use their crops, livestock and machinery to support their favorite causes for over 80 years.

Here’s How a Donor Advised Fund Works

Your Guide to a Gift of Farm Assets

Tractor and hay bales in a field

Financial Benefits

  • Avoid selling the assets yourself and potentially avoid the taxes associated with the sale.
  • Assets are sold tax-free by the Foundation and proceeds are used to support your favorite causes.
  • Agricultural assets can be used to establish gifts that provide you with income, such as a charitable gift annuity or charitable remainder trust.

Examples of Farm Assets

  • Crops, such as corn, soybeans and wheat
  • Livestock
  • Machinery and equipment, such as tractors, combines, trailers and harvesters

Get Started Today

  1. Talk with a Foundation Gift Planner about your charitable goals.
  2. Our experienced staff will work with you and your advisors to determine if a gift of crops, livestock or machinery is right for you.
  3. Establish your own donor advised fund (DAF) that can easily accept a wide variety of agricultural assets.
  4. Your fund sells the agricultural assets free of taxes, leaving 100% of the proceeds available to distribute to your favorite charitable causes.

Avoid the complexity and additional taxation of selling agricultural assets and give to your fullest potential. Call 651.224.5463 or email the team at philanthropy@spmcf.org.

How Bill and Doreen Donated Agricultural Assets

Doreen and Bill in a field on their farm, sitting on the back of a red truck

Bill and Doreen spent more than 35 years operating a large family farm in Northwest Minnesota. They are ready to end their farming days, but are uneasy about selling. They also worry about the potential tax liability of the sale of land, crops, livestock and machinery.

Fortunately, Bill and Doreen’s advisor introduced them to the idea of adding a charitable legacy to their farm sale.

First, Bill and Doreen created a donor advised fund with the Saint Paul & Minnesota Foundation. They contributed their harvested crops, livestock and machinery to the fund and avoided the income tax on the sale of those assets.

Second, they sold the land to a neighboring farm family. The proceeds from the sale will allow them to live comfortably for the rest of their lives.

The Foundation sold the crops, livestock and machinery tax-free and the sales proceeds are now available in their donor advised fund to support their favorite causes.

Ready to Get Started?

Start a conversation with a Gift Planner today. Call 651.224.5463 or email the team at philanthropy@spmcf.org.

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