Beneficiaries

1) CLEMSON UNIVERSITY REAL ESTATE FOUNDATION

Once a commodity gift is made, the donor can designate the proceeds to the Cooperative Extension Service Endowment for general funding purposes or they may choose a specific county to support Extension efforts within. The donor may also designate the proceeds from the sale of their commodity gift to another area, program, or entity of Clemson University instead of to the endowment fund.

2) DONOR

By directly transferring commodities, as opposed to selling the commodity and making a gift from the proceeds, agribusinesses may realize significant tax savings through this method. Commodity gifts are non-charitable deductions and considered unrecognized income for the donor and can be considered unrecognized income for the donor, potentially reducing the tax burden.

For example, when CUREF is gifted $5,000 of grain, the $5,000 is defined as unrecognized income. Depending on the rates of federal, state, and relevant miscellaneous tax rates, the amount of taxes owed due to the income can decrease by approximately $2,000, yet the production costs of the grain are still deductible. Transferring the commodity allows the donor to avoid the sale of the commodity as income, while the production costs may still be deductible. Reducing taxable income may also provide advantages such as minimizing or eliminating self-employment tax and reducing adjusted gross income. The scenario described herein is for example purposes only and should not be relied upon as an expected outcome for each donor. Donors may experience different tax consequences. CUREF cannot make any promises and cannot offer any tax or legal advice regarding the transfer. Agribusiness owners considering this avenue should seek advice from their tax advisor about the procedure and outcomes in advance of making a commodity gift.