RSVP by March 7th
Dear land owners,
Farmland has always been important to Pella. It’s part of the reason for our founding and its part of our legacy as a community. The Pella Community Foundation has created a farmland giving program called Grow Pella. This program provides farmland owners a way to create a lasting legacy that benefits the community, preserves our heritage, and enhances the quality of life for the people of Pella.
We would like to invite you to a one-hour information session describing the Grow Pella program, its benefits and how it works. The session is scheduled for:
Thursday, March 9, 2017
7:00 a.m. – 8:00 a.m.
Two Rivers Cooperative- Pella Location
Buffet Breakfast will be served
Estate planning is essential for everyone but especially for farmland owners. How to handle considerable estate and capital gains taxes can be a major concern as well as making sure the charitable beneficiaries in your estate plan are handled as you wish. These and other important issues and questions for farmland owners will be addressed.
If you are unable to attend, we are planning a noon Lunch and Learn for late April. More details of that meeting time and location will be sent out later.
Jim Brandi, President
Pella Community Foundation
About Grow Pella
Farmland Giving Program
Farmland has always been a crucial part of Pella. It’s part of the reason for our founding and its part of our legacy as a community. Grow Pella allows farmland owners to create a lasting legacy that will benefit the community, preserve our heritage and enhance the quality of life for the people of Pella.
Create a Legacy of Giving for Pella
Grow Pella provides landowners the ability to make a gift of farmland to the Pella Community Foundation. The Foundation is committed to retaining the farmland and keeping it in production. The land continues to be farmed and donor selected charities will benefit from this legacy. In addition,
- Grow Pella provides the option for landowners to structure the gift of farmland as either an outright gift or a retained life interest.
- The donor may recommend a tenant farmer for the land.
Benefits of Grow Pella
Grow Pella is an important tool for retaining one of our communities’ greatest assets, farmland, while providing these benefits:
- Charitable organizations, as directed by the donor, will receive a legacy of sustainable funding.
- Grow Pella will keep farmland in production as farmland with continued production by your tenant of choice.
- Landowners receive a tax deduction for the charitable portion of the gift and it removes the asset from the possibility of estate taxes.
- The gift may be eligible for a 25% Endow Iowa Tax Credit depending on how the endowment funds are structured.
- County governments will continue to maintain the tax bade as the farmland will stay on the property tax roll.
How Grow Pella Works
Farmland gifts can be made as an outright gift or as a retained life interest based on the landowner’s desire.
- The landowner gifts ownership of the land to the Pella Community Foundation where the land stays in production and is managed by Grow Pella. The annual rental income is used to fulfill the landowner’s charitable wishes through a fund at the Pella Community Foundation.
- Donors receive an immediate charitable tax deduction and are potentially eligible for the Endow Tax Credit.
- Donor may recommend a tenant farmer who will farm the land while Grow Pella will use best practices in managing the property.
Retained Life Interest
- The donor makes a gift of farmland but maintains the ability to live on the farm and/or retain the income from the farmland for life, while receiving a tax deduction on the charitable portion of the gift immediately.
- Upon the demise of the donor, the rental income from the land is used to fulfill the donor’s charitable wishes through a fund at the Pella Community Foundation. The remainder interest is passed to the Pella Community Foundation and the land stays in production.
- The landowner may recommend a tenant farmer who will farm the land while Grow Pella will use best practices in managing the property.
Paul Vos, a life-long Pella area farmer, chose to become the first to use the Pella Community Foundation farmland gift program, Grow Pella. He said,
“I decided to use the Pella Community Foundation’s Grow Pella program after investigating several other options because it was local and directly addressed my desire to be able to specify the charities which would benefit from my farm’s income. The process of gifting my farmland was straight-forward and the people at the Foundation were knowledgeable and easy to work with. They plainly explained the entire process. I am pleased with the results.”