The FarmHouse Foundation has established a plan that will allow brothers, who naturally wish to support their own chapter, the option to make tax-deductible contributions for chapter house improvements and construction. Gifts should be earmarked for the SDSU FarmHouse Building Fund. The SDSU Association has access to this money, as long as any funds withdrawn from the Foundation are used for educational purposes. The South Dakota State University FarmHouse Chapter’s educational portion of the Building Fund Campaign –following IRS regulations – has been determined to be 39%. The educational portions of the house are areas such as the group study areas, conference rooms, chapter office, and a portion of the individual sleep/study areas.
Any donation that is send to the International FarmHouse Foundation and earmarked for the SDSU Building Fund is tax deductible.
Another way to donate to the campaign and receive tax benefits is to donate grain or livestock to the building fund. Donations of commodities have tax benefits to both the donor and the association. The grain or livestock will be delivered to the point of sale in the name of the SDSU FarmHouse Association. The association will then sell the commodity and use the proceedes for any portion of the house construction. The donor will not realize the income for the grain or livestock on his tax statement, therefore it is a tax-free gift.
Prior to delivery discuss the transaction with the elevator or livestock market. Some require the FarmHouse Association to setup an account with them prior to delivery. Please contact the Associaiton treasurer to coordinate the details of a grain or livestock donation.
Unless you have a large amount of itemized deductions, the IRS uses a standard deduction, and claiming your donation as a tax deduction may not change your tax status at all. If this is the case, remember that it is much more advantageous to the campaign to have the donations made directly to the SDSU FarmHouse Association.