Charitable Planning with S Corporation Stock—Making It Work

Journal of Passthrough Entities

Authored Article


Since 1998, charities have been able to own S corporation stock (“S stock”). However, the ownership of S stock by an exempt organization may result in either an unexpected tax burden or a liability rather than an asset for the charity. This author’s recent experiences with several clients seeking to include gifts of S stock in their charitable planning well illustrated how challenging this planning objective can be.

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This article is reprinted with the publisher’s permission from the JOURNAL OF PASSTHROUGH ENTITIES, a bi-monthly journal published by CCH INCORPORATED. This article first appeared in the 2014 July/August issue of the JOURNAL OF PASSTHROUGH ENTITIES on page 49. Copying or distribution without the publisher’s permission is prohibited. To subscribe to the JOURNAL OF PASSTHROUGH ENTITIES or other CCH Journals please call 800-449-8114 or visit All views expressed in the articles and columns are those of the author and not necessarily those of CCH INCORPORATED or any other person.