Kernels for Hope

Feb 16, 2022

Give a Gift of Your Crop to Make a Difference in Your Community

Support of The Salvation Army mission not only helps those in need, but it also gives back to those who share their generosity. Local community members benefit when they choose to join us in Doing The Most Good, from enriching the lives of those who volunteer to ensuring a legacy of support through planned giving options.

The latest way that our mission is helping give back to those supporting The Salvation Army is through Kernels for Hope!

What is Kernels for Hope?

Guided by local Salvation Army staff, this gift option allows farmers to save significantly on their taxes by donating commodities such as wheat, corn or soybeans. This can be done in place of a traditional cash donation that would be given after the sale of these crops. Although a charitable income tax deduction is generally not available for donated crop, the aim of Kernels for Hope is to focus on the reduction of a farm's total taxable income by donating shares of crops before they are sold. By doing this, farms are supporting their local Salvation Army's services while also saving on self-employment tax, federal income tax and state income tax.


How does it work?

The Kernels for Hope initiative works through the process outlined below:

  1. Commit your Gift - Contact The Salvation Army (using the information at the bottom of this page) and confirm your intent to donate. Next complete a letter of intent and then finally deliver your crop to a grain elevator or bin.
  2. Request Donation - Coordinate with the elevator company to donate a specified number of your crop bushels to the local Salvation Army serving your community.
  3. Notification of Gift - The elevator company will share a storage receipt with The Salvation Army that confirms your intent to give, and signals their acquisition of the crop.
  4. Sell the Bushels - The Salvation Army will authorize the sale of the donation from your gifted commodity. Proceeds from this sale will be directed to the local Salvation Army serving your community.
  5. File Taxes - The total production expenses of all crops should be included on your tax return (in year paid) but the sale of the gifted bushels do not need to be included. Do not take a charitable contribution itemized deduction on the amount of the sale.


Common Questions:

Q: Can a crop sharing arrangement benefit from the Kernels for Hope technique?

A: No - Shares of crop are considered rental income and must be reported as such.

Q: Can farm corporations benefit in the same way as a sole proprietor farmer?

A: The benefits of the Kernels for Good initiative apply to calendar year-cash basis sole proprietorships. Corporations are not treated the same way from a tax perspective. Ask you tax professional to determine when your farm operation can benefit from a charitable gift.

Q: Will the gifted grain count as income in government payments limitation caps?

A: No - The gifts of grain will not counts as income in your government payment limitation caps calculation.

Interested in Kernels for Hope?

Use the form below to be contacted by a Salvation Army staff member

Or reach out directly to either April Gould (309)-655-1653 or Laura Clark (309)-402-1395


Fill out my online form.

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