Hybrid - S Corp with Sister Nonprofit

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Hello All,

I'm working with a S Corp who intends to donate 50% of all profits to a sister nonprofit organization which will work with microfinance institutions abroad. My question concerns the tax benefits of the S Corp for the charitable contributions.

Is the S-Corp able to deduct all of the contributions to the sister nonprofit? Is there any issue that the nonprofit and S-Corp have the same founder? The nonprofit has not been created yet, is it necessary to ensure that we get charity status (vs foundation and private operating foundations)? Are there any other benefits or implications we should be aware of?

I understand that we should be consulting an advisor...

Thank you for reading this and I appreciate your response!
Elliot
 

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