Charitable Contributions by S Corp avoid deemed sale?

S Corp with 2 50/50 owners owns appreciated stock of a publicly traded company (don't ask why. It's complicated ). Historically, as the shareholders decide to sell stock they simply distribute just enough shares to be sold, which triggers the gain on the deemed sale and then they simultaneously sell the shares with little to no gain or loss.

But now they want to donate shares to a 501c3. If they distribute and then sell they have a deemed sale, followed by individual contributions with at their basis, which is now FMV.

Can we avoid the deemed sale by having the S Corp donate the shares to the 501c3 directly?

If so would the contributions reported on the K-1 be the basis of the shares? And are the individuals allowed to deduct the fair market value of the shares on their personal returns?

And if this both those answers are affirmative, should there be a statement included with the K-1 specifying the FMV?

It's all good. But avoid step transactions. https://www.leagle.com/decision/intco20100405914

The instructions for the K-1 answer presentation.

It's all good. But avoid step transactions. https://www.leagle.com/decision/intco20100405914

Good counsel. Thank you.

The instructions for the K-1 answer presentation.

Indeed it does. I'm grateful for your wisdom and the time you take to respond.