public charity & S-Corp Stock

[eilano]

One of the owners of an S-Corp is thinking about donating some of his stock to a public charity. Public charity would then sell the stock back to the ESOP that is sponsored by the S-Corp. Can this be done?

[IRC401]

The S corp shareholder needs to talk to a tax advisor. If there is an arrangement that the charity sell the stock, the IRS may deny the charitable deduction.