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...and that $3500 includes labor.
If you're gonna get donations, get someone to donate a mill (or rent one for you) and build parts rather than paying a shop. The labor of team members is not counted against the total.
Further question:
If you re-use parts from last year, do they need to be included in the bill of materials? Does their original cost count against the $3500?
Another:
What is the fair market value of a part bought "used" and how would the value of a used item be counted if it was donated?
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