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  • 1.  Gift Cards - who can decide the recipient?

    Posted 7 days ago

    I spent the better part of the morning reviewing the archives for posts related to gift cards and came up short for answers to my three questions.

    Our volunteers coordinate with various departments in the hospital. They accept blankets for newborns, beanies for cancer patients, and care packages for new mothers. During the 2025 California wildfires, our volunteer department collected clothing, food, and household items and distributed the donations to those impacted by the wildfires. Our volunteers are quick to respond to the needs of our community and are working to streamline their donations and their donation process. Part of their new process includes a donation page with a wish list of items.

    1.) Is it acceptable for the volunteers to include Amazon gift cards (e.g., $25) on their wish list of items on their donation page? The reasoning is there are patients with specific needs beyond a beanie or a blanket. A child on the spectrum might be comforted by a weighted plushie or a fidget toy and the gift cards would allow for more flexibility to meet this type of need. It is not clear to me if the volunteers will use the gift cards to purchase items or if the cards will be given directly to patients/family. If gift cards are passed on to the patients/family, a care provider is deciding the recipient; the donor is not part of the decision process. (The gift cards support the clause of our mission to provide compassionate care for each patient.) 2.) Is it correct to issue a GIK acknowledgement to an individual who donates a gift card in response to the wish list page?

    On a separate but related matter, after the 2025 California wildfires, an employee purchased gift cards (Target, Amazon, Kohl's) and gave them directly to co-workers whose homes were lost in the fire and was upset when I declined to provide a GIK acknowledgement. I declined a GIK acknowledgement because the "donor" was in control and decided who received the gift cards. The cards did not pass through our office or the volunteer office; the employee presented the station manager with the receipts for the gift cards and asked the station manager for a tax receipt. 3.) Was it the right call to withhold a GIK acknowledgement for this scenario?

    Thank you for your consideration.



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    Jeannie Goings
    Pasadena, California
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  • 2.  RE: Gift Cards - who can decide the recipient?

    Posted 6 days ago
    Hi, 
    Starting with the easy part. Yes, you are absolutely correct that you cannot issue charitable receipts when someone purchases gift cards and decides who to give them to since they have not relinquished control of the gift and there isn't an acceptable Charitable Class. It's worth pointing out to this person that, if they don't like that answer, the disagreement is with the IRS and not you.

    The first part of your question has details that make it difficult to answer. Are the volunteers setting up their own wish lists, or are they managing a list set up by your organization? I think if the list is maintained by your organization or a foundation related to your organization, it is probably fine to issue in-kind gift receipts. If individual volunteers are making their own lists and then distributing based on their own discretion, then probably no.

    The other question to answer is if the general activity of distributing gift cards fits within your mission. Even aside from the charitable angle, it would be good for internal controls to have a policy in place. Certainly, there are charitable orgs that distribute gift cards or even cash as part of their mission. However, if the fit is not clear, I can see how it would be met with suspicion by the IRS or tax accountants.

    Best

    John Smilde

    Director of Development Operations | Cato Institute

    1000 Massachusetts Avenue NW, Washington, DC 20001

    jsmilde@cato.org

    202.216.1451