Who should get unclaimed gift card cash?
According to Deloitte & Touche, between 2 and 10% of gift card dollars go unspent. What happens to that money is a topic of much debate.About half of states think they should get at least some of the cash under unclaimed-property laws. Of course companies would like to keep the money to give their profits a boost (Revenue that carries no expenses can improve margins nicely!).
I don't know enough about the legality of all this to offer an opinion but here's my idea: What if the unspent portion of gift cards were donated to children's charities like Toys for Tots to provide presents for kids less fortunate than those gift recipients who didn't get around to spending it.
That way, the companies could still book normal profits on the cards -- just as though they'd been used by the intended recipients -- and people who receive gift cards they don't want could just let them lapse, knowing it would go to a good cause.
Sound like a good idea? Too bad it'll never happen.
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Reader Comments (Page 1 of 1)
1-27-2008 @ 10:32AM
Sister Sharon said...
As a person who has worked in the small non profit world her who life...I am waiting for someone to notice these small groups doing great and good works. It would be wonderful if local companies would donate the proceeds to those of us working in this tough to get funds world also known as the small non profit. By the way, the one I am currently working at is: Franciscan Mission Service..and most of us are .org's.
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1-27-2008 @ 11:48AM
juvencia romo said...
There are unclaimed property laws on the books for all 50 states. The "escheat" period may be different, but you can bet that every state in looking to get "revenue" from unclaimed property sources.
Best thing to do is the change the law conerning unclaimed gift cards withing each states so that non-profits could benefit in a direct way.
However the State's position will be we know where to spend the unclaimed "revenue" best: education, transportation, social services, etc.
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1-27-2008 @ 2:23PM
Gary E. Sattler said...
The states should keep their grubby hands out of this, but of course they probably won't.
This comes under that large category of personal responsibility. If people don't have the good sense to use those gift cards, it's their own loss. Businesses have performed their duty under their terms of service and have every right to keep that unredeemed value.
If we allow states the right to seize unused gift card value as unclaimed property what's next?
This matter belongs in the private sector and the government should just "butt out".
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1-28-2008 @ 7:30AM
A. Moreau said...
then the big bussiness should have to pay taxes on the money gained from unused gift cards if they are allowed to recycle the cash. The best thing is to donate to USA organizations, so they can create programs to help the ones in need that want to help themselfs. Plus keep the cash flow in our economy.
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2-08-2008 @ 4:25PM
joe z said...
what people fail to realize when they give a gift to someone they place an added burden on the person to use the gift card. if the gift card is misplaced to later be found and used there is the risk of a value loss or even an expiration. read the card ans see. so the issuing agent either makes his money without dispensing anything or makes extra for a lesser item.
how did this ever get by our brillian politicians???????????
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