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  • 1.  Receipting Gift Certificates/Gift Cards

    Posted 08-22-2025 03:42 PM

    I think this is a pretty simple and straightforward question, but I cannot find a simple and straightforward answer anywhere in past posts or online... Should we list the amount on a gift-in-kind receipt/letter for a gift certificate or gift card?

    By policy, we don't list amounts on gift in kind receipts/letters, but in the case of gift certificates and gift cards it seems that leaving the amount off would be an inadequate description of the gift, akin to just listing "men's wrist watch" and not clarifying whether it was a Rolex 116618BKSO ($45,000) or a Casio MTP-V002D-2B3 ($45).



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    Russel Heskin
    University of La Verne
    rheskin@laverne.edu
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  • 2.  RE: Receipting Gift Certificates/Gift Cards

    Posted 08-22-2025 03:47 PM
    The issue with gift cards is you do not know what amount they will be redeemed for. Unless they have a cash redemption value they remain a gift representing property and should not reflect a value.

    And of the gift card is for a service like a massage or oil change, there is no gift at all.

    John

    John Taylor Principal, John H. Taylor Consulting, LLC 919.816.5903 Big ideas; small keyboard





  • 3.  RE: Receipting Gift Certificates/Gift Cards

    Posted 08-22-2025 03:52 PM

    Thanks as always, John!



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    Russel Heskin
    University of La Verne
    rheskin@laverne.edu
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  • 4.  RE: Receipting Gift Certificates/Gift Cards

    Posted 08-22-2025 04:15 PM
    I should have added that, depending on the purpose of the gift card, most of us would count it at face value. But it remains the responsibility of the donor to determine a deductible amount.

    John

    John Taylor Principal, John H. Taylor Consulting, LLC 919.816.5903 Big ideas; small keyboard







  • 5.  RE: Receipting Gift Certificates/Gift Cards

    Posted 08-22-2025 04:22 PM

    It helps me to recall that, for a non-cash gift, the acknowledgment is supposed to describe the property received in sufficient detail to identify what was received.  So, one share of IBM common stock is exactly like another, so "1 share of IBM common stock" is a sufficient description, but it's different for, say, a work of art, which is very likely unique (Edvard Munch painted like 3 versions of The Scream!).

     

    So, with that in mind, your acknowledgment of the gift card should identify it in sufficient detail to identify it, and a gift card with a face value of $100 is different from a gift card with a face value of $5!  You aren't stating a value, you're describing the property.

     

    As John indicates, just as gifts of services or of a partial interest aren't deductible as charitable contributions for federal income tax purposes, gift cards redeemable for services or for a partial interest in property (like a hotel stay) aren't deductible either, and I wouldn't generally acknowledge those in a way that resembles the acknowledgement of a deductible gift (no IRS language, etc.).

     

    That does highlight another aspect of the description of the gift cards, namely, specifying what the gift card can be redeemed for, e.g. "a gift card, redeemable for merchandise at the Smithsonian American Art Museum Store, with a face value of $50."  Similarly for gift cards for specific items, e.g. " a gift certificate redeemable for the exhibit publication The Shape of Power: Stories of Race and American Sculpture at the Smithsonian American Art Museum Store."

     

    (It gets trickier if the gift card could be redeemed for either goods or services; the best way to handle that is to work with the donor so that the gift card is for the one or the other.)

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Thanks,

    Alan

     

    Alan S. Hejnal (he/him)

    Data Quality Manager

    Smithsonian Institution - Office of Advancement

     

    (202-633-8754 *HejnalA@si.edu

     






  • 6.  RE: Receipting Gift Certificates/Gift Cards

    Posted 08-26-2025 01:40 PM
    We have had some spirited conversations on this topic in the past. 

    My position is that the face value of the gift card is the only meaningful way to describe it. The actual value of a gift card, based on resale markets, is typically ~20% less than the face value, and a description that says, eg "a gift card for use exclusively at [merchant] with a face value of $50" is an accurate description that does not say that the card is actually worth $50. 


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    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

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