Well, both really. But right now, I feel somewhat guilty that we would be turning down a gift they spent a couple hundred dollars on. The certificate says it's non-refundable.
The spirituality issue has already been addressed to a point. They know I have not attended church for several years now, and have not really pushed the issue. Except for this gift. So there's that.
I'm rethinking what I said earlier about returning the certificate.
If you thanked them for the gift, that's all you need to do from an etiquette perspective. You are under no social obligation to do anything else. If they ask you about it, all you have to say is "I'm sorry, we just couldn't work out the logistics and the certificate expired."
Understandably, this is not just an etiquette issue. That's where I think the dealing with it head on comes into play.