A member of my NPO asked me this question. He can buy activity patches for $1.00 a piece. He can then donate them to the club, and they sell it for $3.00 a piece. He is claiming that he can take a deduction of $3.00 since that is what the club is receiving. He uses the analogy that if he donates a car to a charity and they sell it for $2,000 he can take the $2,000 deduction.
Seems wrong to me and I said I'd ask this group.
Thoughts (Specifically pointers to applicable IRS rules would be most appreciated if he can not do this!).
Thanks - Andrew