Nope, This is Steamgifts.com It's for only games that can be redeemed through steam. If you want to give it away, give it away on the forums.
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There's a reason why this site is called STEAMgifts
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I agree that this should belong in a forum giveaway. You could make it private and post the link with stipulations in the forum. This would make it MUCH more likely the winner will have actually read the stipulations and be thankful for the gift.
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You could check out the Reddit community Play it Forward where "Posters offer up an indie game for free. One is chosen from the commenters to give the game to. The receiver then plays the game, and if they enjoy it, should purchase another copy of the game for someone else!"
Or even r/gameswap on Reddit if you'd prefer to trade the game for something else.
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I'll throw in my two cents and say he should be able to do it. As long as it isn't misleading when he post it, then it should be acceptable. This should all be bidder beware of course. Arguing semantics seems pointless and wanting a burned box is a pointless gesture. There is no way to guarantee all copies of the cd key are destroyed on his end.
To the OP, I would suggest getting a screen shot of the winner's steam library to prove he doesn't have a copy of the game already followed by a screen shot of the same account with the key activated. This way you can't have wild claims of being scammed if you did nothing wrong.
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Seems like a lot of generous people on this site and, although i wont be able to give back with a steam game of my own just yet. I do have a sealed unopened copy of Bad company 2 which i could open an give away the key to download via Origin.(which i would destroy after i send key. I will take a photo and send that too, should you ever need it in the future.
Allowed? Or, no?
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