How to Donate Unused Gift Cards to Charity This Holiday Season

You can donate unused gift cards this holiday season by submitting them to a charity gift-card program that turns balances into cash donations or by giving the cards directly to a local nonprofit to use. Programs accept full and small remaining balances online or by mail, while schools, shelters, and holiday drives can spend donated cards directly. A small leftover amount is often called a residual balance.

According to Bankrate, about 43% of U.S. adults held at least one unused gift card, voucher, or store credit in 2024. The total reached about $27 billion nationwide, with an average unused value of $244 per holder, as reported in the Bankrate gift-card survey press release.

Verification note: Program terms and availability can change. This page was checked against linked sources on November 02, 2026.

Turn balances into cash donations

CharityChoice runs DonateYourCard, which liquidates merchant card balances through a gift-card exchange and sends proceeds to vetted charities. It accepts cards from hundreds of retailers, including residual balances, submitted online or by bulk mail-in. Kars4Kids accepts gift cards in any denomination, including store-credit cards, submitted online or mailed in a prepaid envelope.

It accepts gifts from donors outside the U.S. and issues a tax-deductible receipt for the card full value.

Give cards directly to local groups

You can also give cards directly to local nonprofits, schools, shelters, or holiday drives. The charity can then spend the balance, resell the card, or use it as client assistance. GiftCard Partners notes donors should first confirm accepted brands, minimum balances, and secure transfer for physical cards or digital codes.

• Ask which retailers and card types the group can use
• Ask about minimum balances and expiration dates
• Deliver physical cards or digital codes through the stated secure process

Check value and charity status

Federal protections preserve card value for donation. According to the FDIC, gift cards generally cannot expire until at least five years after activation. Dormancy or inactivity fees may be charged only after at least 12 months without use, with clear disclosure, as explained in the FDIC consumer guidance.

A gift-card donation is deductible only if the recipient is a qualified tax-exempt organization. Donors can verify status by name or EIN in the IRS search tool before giving, as described in the IRS Tax Exempt Organization Search guide. This check helps you choose a recipient that can issue a proper receipt.

Keep receipts and protect the transfer

For any single contribution of $250 or more, donors must obtain a contemporaneous written acknowledgment from the charity. Separate smaller gifts are not combined to reach that threshold, according to the IRS Taxpayer Advocate Service. Holiday donors should therefore request receipts for each card.

An exchange pays a percentage of face value, so a charity may net less than the card balance after resale. The IRS warns that legitimate charities never solicit gift-card numbers or wire transfers. Send cards only through the charity stated process and keep your receipt with the card amount.