Our Credit Card and Gift Tips Site has this tip about gift cards:
Sometimes, in fact, cash is a better gift, according to Gary Brown, director of the Westchester County Department of Consumer Protection. “Cash may not seem as ‘personal’ as a gift card, but cash doesn’t expire, there are no fees and people who receive a gift of cash tend to spend only that amount. Ten percent of gift cards end up going unused, which is why merchants love them.”