A bill to amend the Internal Revenue Code of 1954 to permit a charity to own stock in an S corporation.

Amends the Internal Revenue Code to permit a charitable organization to own stock in a small business corporation (S corporation). Provides that a charitable organization which owns an interest in a partnership or owns stock in an S corporation must include its share of the unrelated trade or business income of the partnership or the S corporation in computing the charitable organization's unrelated trade or business income for the taxable year.