A business owner who contributes closely held stock to Missouri S&T will be allowed a charitable deduction for the fair-market value of the stock. An additional benefit is that the donor will escape the potential capital-gain tax on any appreciation in the value of the stock.
Subsequent to the gift, the corporation could purchase the stock from Missouri S&T for cash. This not only enables the donor to retain complete control over the company but also makes cash available to Missouri S&T for its current needs. As long as Missouri S&T is not obligated to sell the stock to the corporation, the transaction should produce no adverse tax results.