How to Manage Unused Gift Cards that Have Been Donated to Your Organization

Following is a transcript of this episode of the Two Minute Treasurer’s Tip Podcast from MoneyMinder, with audio/video below.

Welcome to the Two Minute Treasurer’s Tip Podcast. I am your host Cyndi Meuchel with MoneyMinder, where we’re hoping to make your life as a volunteer way easier.

Kayleigh writes: During our last meeting, someone suggested people donate gift cards to our organization that they weren’t going to use. That way, our organization could use them. The good news is that we had several donations. But now, I’m not certain how to track these. How can I manage unused gift cards that are donated to my organization?

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So, gift cards are the equivalent of cash and should be treated and accounted for as a cash donation. But since they are not as flexible to use as cash, and the funds are never actually deposited into your bank account, they are a little trickier to document.

If you’re using MoneyMinder, you will add each gift card as its own bank register or account. Then you will make a deposit for the value of the card, assigning it to something like a Donations category. As you use the cards, you make withdrawals from this account or register, working the balance down to $0. Those withdrawals can go against a budget category that you choose as they are being used. This way, they won’t affect your actual bank balance. Does that make sense?

That’s it! My name is Cyndi Meuchel, and this is your Two Minute Treasurer’s Tip for today.