During the holiday season, many people receiving gifts will be politely grateful, only to then think about the best ways to dispose of them.
Best-selling personal finance author and radio host Dave Ramsey discusses some key things to remember when donating again.
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But first, it’s important to note that retailers generally understand that many purchases made during this time are gifts.
So one option is to return the gifts for a refund. Because retailers expect an increase in this activity, they are expanding their return policies at this time of year.
For example, most items purchased on Amazon (AMZN) – Get a free report can be returned until January 31. This process is easiest when an item has been marked as a gift at the time of purchase.
For items purchased between October 1 and December 31, Walmart (WMT) – Get a free report also allows customers to return them until the end of January.
Target (TGT) – Get a free report allows returns within 90 days of purchase on most items. Electronics, however, have a shorter return window.
But some people are considering an entirely different choice about what to do with unwanted gifts. This is where Ramsey’s warning about regifting comes in.
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The personal finance expert says there’s nothing wrong with donating again, as long as it’s done correctly.
“Let’s be real,” Ramsey wrote on Ramsey Solutions. “Christmas can be expensive. In addition to giving gifts to family and friends, you might feel the pressure to give a gift to everyone in your life: your mailman, your daughter’s lunch lady, your hairdresser and your four closest neighbors.”
“So what happens when your desire to be generous exceeds your budget?” He asked. “Don’t worry, we have a solution for that: regift. You’ve probably received a few gifts that didn’t hit the mark.”
Ramsey gives some advice on a few things to remember when donating again. But there is one he emphasizes more than the others.
“This one is important,” he wrote. “When you receive a gift, make a mental note of who gave it to you.”
He then describes a scenario in which forgetting this detail could turn out very badly.
“Let’s say your well-meaning Aunt Louise gave you a candle-making kit for Christmas,” Ramsey wrote. “Even if you love candles, you hate anything DIY.”
“A few years later, you find a candle-making kit in your closet,” he continued. “And wouldn’t you know it, this would be the perfect gift for your Aunt Louise – she loves to craft. Ouch. If only we could see the surprise and disbelief on Aunt Louise’s kind face.”
“Don’t say we didn’t warn you,” Ramsey added.
Other useful tips for making the right decisions
Ramsey advises people considering donating again to remember a few additional important recommendations.
“Remove labels from gifts,” he wrote. “There’s nothing worse than receiving a gift with someone else’s name on it.”
Ramsey also says rewrapping gifts is mandatory.
“Go ahead and rewrap that sweater. Instead of letting the gift remind you of the person who gave it to you, you can give it new life,” he wrote. “Be creative. Let the rewrapping of the gift remind the person you’re giving it to – and that they will be the perfect recipient of this sweater. I hope they love it more than you ever could! “
The radio host brings up another important suggestion.
“There is a deadline,” he wrote. “For example, few people want (or even have the opportunity to play) your unopened 2010 CD ‘NOW That’s What I Call Music’.”
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