Once you get to Half-hill in the Valley of the Four Winds, you'll find a thriving market there. At the heart of it is Gina Mudclaw. Talk to her, and you quickly find out that all about gift-giving from her. She can tell you all about it, including what gifts she likes herself.
What she doesn't tell you is what are the actual mechanics of gift giving? Do you try to trade with the recipient? Is there some sort of dialogue you must start? Do you target the recipient and then use (right click) the item? Is there some add-on interfering with it that you must disable? I tried all these ideas,and many more besides, to no avail. I finally figured it out. What Gina forgets to mention is that you are scum until you reach level 90. Before then, the Mudclaws don't want your gifts. After that, you can give them gifts as daily quests.
I Miss Ghostcrawler - There, I said it. Luckily for all of us, apparently the people of the LoL forums occasionally goad him into talking about WoW design. Here are some of the ...
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