Supplies: duck cloth, template (download HERE), straight pins, scissors, sewing machine, fabric scraps, shank button, elastic and lace pieces.
Pin template to duck cloth and trim.
Fold duck cloth on fold lines as shown on template.
Gather thin strips of fabric. I used pieces from my inky muslin cloths.
Using a straight stitch, attach strips to duck cloth as shown in photo.
Stitch fabric strips across one side of duck cloth and fold over one piece and stitch at straight edge as shown in photo.
Trim all around the edges, leaving just a little over the edge.
Sew small pieces of lace, printed muslin or other embellishments to holder.
Stitch all around the edges.
Fold bottom up to create pocket and stitch up the sides.
Attach a button and elastic to create closure. I used a shank button which has a "loop" on the back and a tinker pin to hold it in place. Button pins also do the trick! I also used 6" elastics I got from 7 Gypsies but you can use regular elastic and knot the ends inside the bag to hold in place.
Insert gift card and you are all set!
I also made another holder in a pouch style. I stitched fabric strips to two pieces of duck cloth (one a little shorter to go on top) and stiched them together to create the pocket for the gift card. I embellished with embroidery stitches and a few fabric flowers I salvaged from an old t-shirt.