$8 Billion in Unredeemed Gift Cards Annually

“Every gift from a friend is a wish for your happiness!” – Richard Bach

I was talking money-saving (what else) recently with my friend and the creator of the wonderful nonprofit website, Get to Work America, Chuck Kuhlig. Chuck works tirelessly to help the unemployed among us make it alive from one job to the next.  Chuck shared a statistic with me at that time that left me looking like a deer in the headlights.

Chuck said, “Jan, do you know that in 2006 consumers purchased more than $80 billion in gift cards? AND, that figure has gone up more than 10 percent in 2011.″

My response was an obvious “not really.”  However, it wasn’t the $80 billion in gift card purchases that stunned me. I was more shocked by the dollar figure that represented how much of that $80 billion would go UNREDEEMED!

Gift Card Redemption, Not Just Another Statistic!

Although from time to time I give gift cards as gifts, I am more of what I like to call a “specialty theme shopper.” I like to think that the recipient of any gift I give will be delighted with the gift I have chosen for them and of course, they would never return it. This is unless the gift is chosen for my daughter, Jade, who has returned an endless stream of my gifts, especially if clothes or shoes are involved. Mom’s taste? Well I digress. Because of the returns, I have taken to providing Jade with gift cards for gas, music, clothes, shoes, etc., because she likes to choose things herself. What percentage of Jade’s gift cards go unredeemed? Zero. She knows what she likes, knows where she likes to shop and is always grateful to be able to make her own decisions. She even seems to have a sixth sense for gift cards I may have received, “So Mom, are you ever going to use that Mario Triccoci gift card?” However, Jade it appears is in the minority, big time!

Of the $80 billion worth of gift cards purchased in 2006 ($86 billion in 2010), how many dollars will go unredeemed?  “And the survey says …”  $40 billion! $40 billion worth of gift cards that you and I and our neighbors purchased with the intention of imagining the recipient hugging just the coffee pot or vacuum cleaner or car seat that they have pined for — gone! That statistic is just for the cards purchased back in 2006. If $40 billion dollars worth of gift cards go unredeemed annually, that is $400 billion in a decade. As I write I am still a deer in the headlights.

While the economy was humming along, this statistic may have gone unnoticed. No one gave much thought about the $40 million or so in profit that retailers absorb because of the gift cards that go unredeemed. Victoria’s Secret owner, according to an Associated Press blurb, claimed $39 million in unredeemed gift cards. Think of the mountains of satin and lace gone to waste! Fast-forward to 2009, double-digit unemployment and a huge need to save money and conserve. Like many of you, I find myself vigorously looking around for that gift card for which I remember thanking someone.

There is a moral to this story. First, go on a treasure hunt around your house, through your pockets, purse, drawers, old birthday and Christmas cards and shake loose those unused gift cards. Part of that $80 billion in unredeemed cards may be hanging around your house. If you have a need redeem them, fill up your student’s car with gas or go directly to the restaurant and eat — do not pass go!

Of course, there is always a negative somewhere. For those among you who are inclined to make some cash from extra gift cards and want to sell them, just suffice it to say that of course, there are Bogus gift card sites that find dozens of new ways to exploit you. All I am going to say on this topic right now is BE CAREFUL!

If you are inundated with unused gift cards, are gainfully employed and not inclined to redeem or sell your booty, then I have a wonderful idea — DONATE THE CARD TO THE UNEMPLOYED!

My long-term goal in life is to be so wildly successful that I could donate all of my productive time to those in need. I don’t see that happening any time soon, however, I certainly could donate a certain beauty shop gift card to my unemployed neighbor who could use the lift of a good haircut for her next interview.

Chuck Kuhlig, creator of Get to Work America, has the answer. 

“When you have a good-paying job, or you’re comfortably retired, it’s easy to forget that many people out of work in this down economy are living day to day. In fact, the person standing next to you in the supermarket might be thumbing through coupons hoping they can afford to buy enough groceries to get the family through another week," he said. "On the outside, the unemployed look no different from anyone else. As most job seekers will tell you, though, the stress of continued unemployment is a crushing blow to an individual’s confidence and self-esteem. The sudden economic change can have a drastic impact on a family’s lifestyle, delaying their hopes and dreams for years.”

Chuck’s organization has created the GWA “Gift-A-Card” program to help the unemployed in dozens of ways.

A Home Depot card could help someone with a much-needed home repair. A local restaurant could buy a family lunch or dinner. Donating a card is simple. You can donate your unused gift cards by sending them to the following address:

Get to Work America
c/o Gift-A-Card 
P.O. Box 471
Arlington Heights, IL 60006

No cards are donated without first verifying that the recipient is unemployed. The program is national. You can donate a card in Chicago and if it is valid nationally, you can help someone in Oregon or Georgia. Giving is a good feeling.

For example here is what card donor Linda A, of Northbrook, Ill., had to say: “What you are doing for people is fabulous. Please accept this gift card for $100 as my donation.  Good luck!”

I always say, “Charity begins at home,” so of course, if someone in your family could use a boost, lost their job or in some other way could use your extra gift card, then by all means, use this column as incentive to use the card to help them out. If on the other hand the card will go unused, do check out Get to Work America and review the good work that Chuck is doing there and help his people.

Thanks Chuck for reminding me that I am lucky to be employed and how great it feels to be able to be on the giving side! For the treasure hunters among you — get hunting! That $40 billon in unredeemed cards is just over there, in the corner of the drawer? Glove compartment?  Pocket?

If you are not in a position to donate your booty of unused gift cards, you can always sell or trade them at a site called the Plastic Jungle.

We are all in this together. I would love to hear how you are saving money and time in these crazy economic times. If you have a shopping tip or have a creative way to save money or reach a financial goal or have donated a gift card, use my contact form to contact me or leave a comment!