Farmland giving represents an incredible opportunity for rural philanthropy and is a great tool for landowners.
Southwest Initiative Foundation is well-poised to run Keep It Growing and provide many different options for how to structure a gift of farmland—from an outright donation from the sale of the land to a gift agreement that will keep the land in production for years to come.
We work directly with families and financial planners to help landowners make a truly meaningful gift using our unique program.
If you’re interested in learning more about how Keep It Growing can work for you or your clients, contact us at 800-594-9480 to learn more.
Read how southwest Minnesota families have benefited from our program:
- Remick Family: Planting Seeds for a New Way to Give
- Johnson Family: Cultivating the Next Generation
- Glenn Krog: Keeping the Farm Local
- Siebenand Siblings: Inheriting the Farm
- Hear us on the Linder Farm Network
8-21-15 Scott Marquardt
8-14-15 Scott Marquardt
8-7-15 Sandy Ludeman
7-31-15 Diana Anderson
7-24-15 Geof Johnson
7-17-15 Cynthia Huse
7-10-15 Glenn Krog
7-3-15 Diana Anderson
6-26-15 Jackie Turner-Lovsness
6-19-15 Jackie Turner-Lovsness
6-12-15 Jackie Turner-Lovsness
6-5-15 Diana Anderson
5-29-15 Cheryl Glaeser
5-15-15 Cheryl Glaeser
5-8-15 Cheryl Glaeser
5-1-15 Diana Anderson
4-24-15 Jodi Maertens
4-17-15 Jodi Maertens
4-10-15 Jodi Maertens
4-3-15 Diana Anderson
3-26-15 Scott Marquardt
3-20-15 Scott Marquardt
3-13-15 Scott Marquardt
3-6-15 Diana Anderson
2-27-15 Diana Anderson
2-20-15 Diana Anderson
2-13-15 Diana Anderson
1-30-15 Diana Anderson
1-23-15 Diana Anderson
1-16-15 Diana Anderson
1-9-15 Rob Saunders
1-2-15 Diana Anderson
- How It Works
How Our Farmland Retention Option Works
There is great flexibility for landowners to retain income for their lifetime and support their heirs while receiving maximum charitable tax benefits. Our farmland retention option keeps land in production, plus it often provides opportunities to maintain important tenant or neighbor relationships or even help support young farm families. Here’s an example of how the program works. Click the image to enlarge.
Farmland retention greatly impacts rural philanthropy not just through the gift. Wealth is retained by keeping rental income in the region and by keeping wealth created by continued use of the land local. This wealth makes a significant impact on our southwest Minnesota communities.
- How To Learn More
If you’re interested in learning more about how Keep It Growing can work for you or your clients, contact us at 800-594-9480.
Staff who work with our Keep It Growing program:
E-mail Diana Anderson
Email Liz Cheney
Community Philanthropy Director
- Other Options Provide Flexibility
Flexibility uniquely positions community foundations like Southwest Initiative Foundation to be an attractive partner for farmers and landowners. Donors using Keep It Growing can choose how their gift is structured.
- You can make a current gift or life estate gift
- You can have SWIF keep or sell the property
- You can set up the gift into perpetuity or for immediate use
- You can determine the purpose of the gift
- Named Fund or Donor-advised Fund
- Community or Designated Fund
- Southwest Initiative Foundation’s General Endowment
We have tools to create sample gift structures based on your preferred gift method and impact. Click here to see an example. Contact us to generate an example based on your or your client’s situation.
Download our Gifts of Real Estate check list to help get the conversation started.
- Program History
Southwest Minnesota attorney Patrick Costello saw within his own law practice that many clients were charitably inclined and yet so deeply connected to their farmland and their neighbors that an outright gift of land that would be sold off by the charity was not an attractive option for everyone. Pat wondered if charities might consider keeping and managing the farmland, and knew immediately that community foundations would be best positioned for the opportunity. Rather than liquidating the assets like other charities usually do with gifts of real estate, Pat’s model allows Southwest Initiative Foundation—a community foundation—to receive remainder interest of the donor’s life estate, maintain ownership of the land after the donor passes, and if desired, create a donor designated memorial fund that will support the farmer’s charitable interests. To our knowledge, Southwest Initiative Foundation is the first to create a farmland giving program with the option to keep the land in production. Retaining one of southwest Minnesota’s greatest assets-farmland-through our Keep It Growing program benefits all involved.
- Landowners receive a tax deduction for the charitable portion of the gift; bypass all capital gains taxes; create stable revenue source for remainder of lifetime; and benefit favorite charities.
- Tenants continue renting the land and keep wealth generated by the land local.
- County maintains tax base, as SWIF continues paying property taxes on the land.
- Southwest Initiative Foundation retains ownership of the land and diversifies its investment portfolio; earns revenue from the rent for the benefit of the southwest Minnesota region and its communities; and serves donors in a meaningful way, helping landowners create a legacy.