If your business is an S-Corporation, you should have had a Beginning Inventory from 2019 plus Purchases in 2020.
Then there would have been inventory sold during the course of the year's business with the remaining inventory prior to donation.
The Ending Inventory needs to be distributed to you to make the donation at year end, reducing your capital account.
The S-Corporation cannot make the donation. It is considered a disregarded entity - the donation flows to you on your personal return.
The change in your capital account gets reflected on your K1(1120S) and the donation is made by you and can be reported on your Schedule A if you have enough itemized donations to itemize on your individual tax return.
