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 GrowingSM 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 GrowingSM can work for you or your clients, email us or contact us at 800-594-9480.
Read how southwest Minnesota families have benefited from our program:
The Roots of Keep It GrowingSM
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 GrowingSM 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.