Technically yes, as you're infringing copyright irrespective of selling price.
Otherwise newspapers would be able to give away Beatles albums every day...
DavidRFuller wrote: I'm curious- is it illegal to make bootlegs (like Royal Rarities) if they aren't intended for selling? I've always wondered.....
Exchange "selling" for "distribution" and you pretty much have it. Distribution covers selling, broadcasting, giving away, or simply letting your buddy Merle have a listen.