iPod and Mobile Phone Recycling Program - https://www.apple.com/recycling/ipod-cell-phone/ - Get an Apple Store Gift Card for the value of your old device.
Apple Recycling Program [all computer and mobile devices] - http://www.apple.com/recycling/gift-card/ - Some devices may be eligible for a gift card, others can only be recycled.
You can probably get more by reselling the device.
What to do before selling or giving away your iPhone, iPad, or iPod touch - https://support.apple.com/HT201351 - "Use these steps to remove your personal information from a device"