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There is no right or wrong answer to this, it is a personal preference. For me, it depends on where the gift card came from. Our tenants knew we never treated ourselves to a dinner out, so they would give us gift cards to a restaurant. We really enjoyed those, especially since they would babysit for free on the night we used them. If the gift card comes from a store where the person knows you shop (assuming you like to shop), then some thought went into it and possibly they were worried about getting you something you did not like. With that in mind, I think the gift card is better than the cash.
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"Toughness is in the soul and spirit, not in muscles." ~Alex Karras
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