Process of Donation
Step 1: Donor completes and returns the CUREF Form to designate commodity gift to CUREF and allocation of sale proceeds.
Step 2: Donor delivers commodity to elevator/co-op or Palmetto Grain brokerage. Scale receipt given to donor.
Step 3: Commodity ownership transferred from donor to CUREF (dominion and control).
Step 4: CUREF authorizes sale of commodity and sends donor acknowledgement letter with commodity type, date received and gift credit amount.
Step 5: Sale proceeds transferred to CUREF for distribution to program beneficiaries.
CUREF will accept a variety of commodities such as corn, soybeans, wheat, cotton, oats, grain, sorghum, timber, cattle, tobacco, or land. Due to the different tax situations related to these commodities, agribusiness owners are encouraged to contact CUREF to discuss the transfer and their options for the designation of the proceeds generated from the sale of the commodity gift. The donor should consult their attorney or professional advisor regarding their specific tax benefits.
To participate, the donor will complete the donation form (see appendix) and return to CUREF prior to the donation. Once approved by CUREF, the donor will deliver the commodity to a local grain elevator (grain storage facility) or co-op and state that they are transferring ownership of the commodity to CUREF giving it full “dominion and control” of the commodity. If Palmetto Grain is used as a broker by CUREF, the donor will state they are transferring ownership to the broker on behalf of CUREF.
The grain elevator or broker will then sell the commodity at fair market value as directed by CUREF. The commodity value of the gift is determined by the grain elevator or broker as the value on the day that it was gifted which will then be the donor’s gift credit amount. There is no commodity insurance required because there is a minimal risk due to the short hold on the commodity, and the grain elevator owner carries the necessary commodity insurance. The proceeds of the commodity sale are sent to CUREF to be processed and are later distributed to the appropriate fund, as designated by the donor.