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DW recently joined an exercise gym. The gym normally charged a $200 initiation fee, but, was having a special promotion in that a donation of groceries could be made in lieu of the initiation fee and the gym passed the food on to the local food bank.
I assume the cost of the food is not a charitable donation for DW since she received something of value in exchange. Correct?

I'm also curious as to how this is handled by the gym. I assume that a business expense would be written off for the donation to the food bank. Would tha write off be the $200 normally charged for initiation fees or would it be the value of the food?

TIA, Bob
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