Creative fundraising: Farmers give gift of grain
One Iowa hospital foundation has involved its local farmers in a creative way to raise funds to build a new surgery center and clinic and make renovations to the hospital. Farmers are given the opportunity to pledge a portion of their grain toward a capital campaign fundraising effort. At press time, 11 farmers had donated $18,000 worth of grain, and more donations were expected.
Farmers were requested to donate harvested or stored bushels to the Harvest for Your Hospital program by the Floyd Valley Hospital Foundation in Le Mars, IA. The campaign included the statement "Leave a legacy, one bushel at a time."
The hospital developed a pamphlet, then spread the word about the grain campaign through local radio, the state corn growers association, and the local farm bureau. Farmers were given the option of donating grain at 17 area elevators. In return, the farmers potentially could avoid federal and state income taxes as well as self-employment taxes on those gifts, said Chuck Jespersen, manager of the Floyd Valley Hospital Foundation. They also might be able to deduct input costs, Jespersen said.
He contacted all of the local grain elevators to set up accounts. Some of the elevators allowed him to post a banner saying the hospital was accepting donations. Farmers were asked to contact Jespersen about wanting to make a gift. The farmers told the elevator workers that they wanted to gift grain to the foundation's account. The elevator staff gave receipts for the donated bushels. The elevator sent the contract-to sell for signature to the foundation to sell the grain. The grain elevator issues the check for the sale to the foundation along with the "bill of sale" indicating the number of bushels and the sale price. (For more information, go to http://bit.ly/1b31knP.)