It’s happened to all of us. Someone gives you a great gift that you already have, or that you don’t need, or that just isn’t your style. The gift is nice, and you definitely appreciate the thought. You don’t want to let their hard-earned money go to waste, so what do you do?

Do you store it in the closet, effectively forgetting about it until years later when it becomes thrift-store fodder in a fit of de-cluttering? Do you return it? Do you throw it away? Do you sell it?
Or do you re-gift it to someone you know would love it and get some great use out of it?
Re-gifting: Faux pas or Frugal genius?
Re-gifting has a bad rap. Many people seem to see it as socially unacceptable to give a gift to someone else that you did not purchase yourself.
My question is why?
If you don’t need or want a gift, why not give it to someone else who does need or want it? So I’m going to go against social convention to come out in favor of re-gifting. If done right, it can be a great tool for showing others you care while potentially saving some money.
Re-gifting Ground Rules
The key to that last sentence is “if done right.” I’m a huge proponent of re-gifting, but there are some things, and some situations, in which I won’t re-gift.
Rule #1: Don’t re-gift something that’s in poor condition, or obviously used.
…unless it’s a rare item, or you know the person receiving it won’t care. Some of my favorite gifts I’ve ever received have been used books. But I would never give a used book unless I knew that the person to whom I was giving it didn’t mind.
If you received a gift in this condition, do what you will with it, but I wouldn’t recommend passing it along to someone else.
Similarly, if you’ve used an item for a while, and then decided that you no longer needed or wanted it, and decided to give it to someone else, make sure it’s in good shape before you give it. “It’s the thought that counts” applies to the condition of the gift as well as the act of giving it.
Rule #2: Don’t re-gift something to the person who gave it to you.
Nothing says tacky like re-wrapping a gift a friend or loved-one gave to you, and handing it back to them a few months down the road. I have been in situations where a friend and I have given each other the same gift, for the same holiday, but that’s different.
Along the same lines, it’s probably better not to re-gift something to someone who saw you receive it.
When I re-gift, I try to do so in different social circles. For example, I might give to my mother-in-law a great picture frame that my cousin gave me. My mother-in-law loves having framed pictures of family around the house, and I don’t have room for more frames on my walls. My cousin lives on the other side of the country from my mother-in-law, so there’s little chance that either of them would know that I re-gifted the frame, even if they cared.
Rule #3: Don’t re-gift a present to someone unless you know that they’ll like and appreciate it.
If a gift you’ve received seems like it might be the proverbial “fruitcake,” you’re better off donating it to Goodwill than continuing to pass it on.
Fit the gift to the recipient as much as possible, and you’ll be in good shape.
Rule #4: Don’t re-gift a homemade present.
Take the picture frame example from Rule #2. If my cousin had given me a nice picture frame that she had decoupaged with magazine pictures of things that I am fond of, no matter how little space I have on my walls for more picture frames, I won’t give that gift away, either as a re-gift, or to Goodwill.
The only possible exception might be a hat or scarf that someone knit for you, but even that idea makes me a little queasy. I certainly couldn’t do it.
The Re-gifting Grey Area: Thrift Stores
Some people would say that gifts from a thrift store don’t count as re-gifted because you bought them.
Other people say that giving a gift that you found at a thrift store is tacky, either because the item is used, or because it didn’t cost you very much.
I say, if the gift passes the four re-gifting rules above, why does it matter that it came from a thrift store?
For example: Last year I found a carved mahogany rhino in the knick-knacks section of my local thrift store. It’s beautiful, and in very good condition, so I bought it for my father-in-law for Christmas, because his favorite animal is the Black Rhino. This carved animal was a quality piece, in very good shape. The fact that it had a previous owner and cost me $5 instead of $50 shouldn’t matter one bit.
The final thing I would say about re-gifting is this: If it makes you uncomfortable, or if you think there’s a good chance that you’ll hurt the feelings of the person who originally gave you the gift… just don’t do it. No matter what I – or anyone else – thinks is okay, if the idea of re-gifting offends you or makes you squeamish, there’s no need for you to do it.
Otherwise, if the gift fits, and passes the four rules above, I say, go for it! What do you think?