Gifts, Prizes and Awards (C-58)
Original Implementation: April 22, 2008
Last Revision: None
This policy provides guidance regarding gifts, prizes and awards that can be given, the manner in which they can be given, and reporting requirements. State and federal regulations restrict the use of university assets to provide occasional gifts, prizes and awards to employees, students and others in the university community. In addition, different IRS regulations apply to the federal reporting of gifts, prizes and awards given to employees versus non-employees.
Raffles that include the purchase of a chance or ticket may not be conducted by the university. Outside organizations authorized to conduct raffles may do so only in accordance with Policy D-33, Solicitation on Campus, and state law.
Financial aid awards and grants are not considered gifts, prizes or awards for purposes of this policy. Most awards to students that are related to academic performance are considered financial aid, and as such are not subject to the provisions of this policy. Financial aid awarded to students must be processed through the business office, recorded on the student’s account, and reflected on the student’s bill.
Marketing and promotional items bearing the SFA name or logo are not considered gifts as long as they are not excessive in nature. An example of a marketing or promotional item is a shirt with an SFA department name provided to an SFA employee or representative. In addition, tickets provided to a representative of SFA for sporting events, fine arts events, recognition banquets, etc, are not considered gifts when attendance at the event is to promote the university in the representative’s official capacity.
All definitions and reporting requirements of this policy apply to any university funds, and remain the same even if the funds originate as a gift to the university from a third party.
No gifts, prizes or awards of any kind should be charged to university education and general (state) funds, designated accounts funded by course fees or other fees, or restricted federal and state funds as outlined below.
Use of Restricted Federal and State Funds: Funds from federal and state grants, contracts, or other sponsored agreements cannot be used to pay for items that are or appear to be gifts or marketing or promotional items, such as t-shirts, key chains, tote bags, caps, and other souvenirs or memorabilia, unless specifically provided for in an award document. Use of these funds to pay for awards for participation in grant-funded activities is generally allowable when both reasonable in cost and necessary to accomplish program objectives. Acceptable awards include plaques, small trophies, ribbons, certificates, and pens/pencils and similar items.
For purposes of this policy the following definitions are understood:
Employee: An individual receiving compensation as a full-time or part-time employee, including casual employees, student employees and graduate assistants.
Non-Employee: An individual receiving no employment compensation of any kind or in any amount, including students who are not employed by any department of the university.
Gifts: A voluntary conveyance of something of value as a gesture of good will or appreciation. Marketing and promotional items are excluded as gifts as noted above.
Award: Something of value conveyed as a result of competition, merit or in recognition of service to the university on the part of the recipient.
Prize: Something of value conveyed as a result of chance, generally for promotional purposes, to one or more participants in an event sponsored by a university department or organization.
EMPLOYEE as the recipient of a Gift, Prize or Award
Gifts
Gifts of cash, including gift cards and gift certificates, to employees are not allowed using university funds.
Gifts, including those for birthdays, weddings, showers, retirements and other personal events, are usually not allowable expenditures of university funds. At their discretion, co-workers may contribute personal funds for this purpose.
Gifts other than cash, gift cards or gift certificates, and personal in nature such as those described in the previous paragraph may be allowed upon approval by the President or Vice-President when such gifts are for the purpose of showing support, respect, recognition, or good will, and are within IRS guidelines. If approved, the department must report the following information to the Controller’s Office: recipient name, social security number, address and value of the gift.
Non-cash gifts for employees of nominal value, such as t-shirts, cups, mugs, etc. can be purchased with appropriate funds. Marketing or promotional items bearing SFA name or logo as discussed above are not considered gifts. Non-cash gifts must be valued at $100 or less, unless a larger amount is approved by the President or Vice President. The department must report the following information to the Controller’s Office: recipient name, social security number, address and value of the gift.
Prizes & Awards
Cash awards may be given to employees for meritorious performance or other reasons connected with employment ONLY as part of an established campus-wide program. See Policy A-66 “University Award Programs.” Such cash awards cannot be given in the form of gift certificates or gifts cards, but must be paid through payroll and submitted on a stipend authorization form.
Non-cash awards given to employees as length of service awards are acceptable as long as they are valued at less than $400 per year per employee. These awards may ONLY be administered by Human Resources.
Any non-cash award given for meritorious performance, or other reasons connected with employment, must be of nominal value. For purposes of this policy, nominal value is defined as $50 or less.
An employee may accept a cash or non-cash prize or award of any amount where the individual’s employment is incidental to the basis on which the prize or award is given. For example, a university employee would be eligible to win a door prize given at random or an essay-writing contest.
The department or organization sponsoring the contest, game of chance, etc., without the purchase of a chance or ticket must report the following information to the Controller’s Office: recipient name, social security number, address, and value of the prize or award.
NON-EMPLOYEE as the recipient of a Gift, Prize or Award
Gifts
Gifts of cash to non-employees are not allowed.
Gift certificates, gift cards or tangible commodities are allowed as long as the gift is given for a valid business reason.
For any gift greater than $100 in value, the department must report the following information to the Controller’s Office: recipient name, social security number, address, value of the gift and reason for the gift.
Development Gifts to donors or other individuals serving development interests, or for alumni relations purposes using university funds or property cannot exceed $100 in value unless approved by the President. The department must report the following information to the Controller’s Office: recipient name, social security number, address and value of the gift.
Institutional Gifts – When university officials are visiting abroad or are hosting visitors from other institutions, appropriate university funds may be used to give such visitors a gift valued at $100 or less, as a sign of appreciation or recognition. Any gift valued greater than $100 must be approved by the President. Marketing and promotional items with the SFA name or logo are not considered gifts as discussed above. The department must report the following information to the Controller’s Office: recipient name, social security number, address and value of the gift.
Gifts to Public Officials - Federal and state laws severely restrict the nature and value of gifts that may be made to public officials, and those restrictions may vary depending on the type of gift as well as the office held by the official. Gifts to municipal officials may also be restricted. In general, university policy prohibits all gifts to public officials, with the exception of token gifts valued at less than $50 as long as they are not provided in exchange for his/her decision, opinion, recommendation, vote, or other exercise of discretion as a state employee. Any exception to this limit should be discussed in advance with General Counsel in order to make certain it is allowed under the specific governing conditions. There may be restrictions on paying honoraria to public officials and questions should be directed to the General Counsel.
Prizes & Awards
Cash (including gift certificates or gift cards) or non-cash items may be given as prizes and awards as long as they are reported as required herein. Prizes and awards to non-employees must be for a valid business reason, which may include a contest, door prize, etc. without the purchase of a chance or ticket.
Regardless of the value of the prize or award, the department must submit the following information to the Controller’s Office: recipient name, social security number, address, value of the prize or award, and the reason for the prize or award.
NON-RESIDENT ALIENS as the Recipient of a Gift, Prize or Award
Cash and non-cash gifts, prizes and awards to nonresident aliens are generally subject to 30% withholding and reported on an IRS Form 1042-S. The department or organization must contact the Controller’s Office before processing gifts, prizes and awards to persons who are not U. S. citizens or Legal Permanent Residents, regardless of the value of the gift, prize or award.
The following information must be reported to the Controller’s Office: recipient name, social security number, address, value of the prize or award, and the reason for the prize or award:
SUMMARY
Type |
CASH |
NON-CASH |
||
|---|---|---|---|---|
EMPLOYEE |
NON-EMPLOYEE |
EMPLOYEE |
NON-EMPLOYEE |
|
| Gifts | NOT ALLOWED No gift cards or gift certificates. |
NOT ALLOWED Gift cards or gift certificates <= $100 allowed for a valid business reason Gift cards or gift certificates > $100 allowed for a valid business reason and MUST be reported to the Controller’s Office. |
Personal gifts for the purpose of showing support, respect, recognition or good will with President or Vice-President approval only and MUST be reported to the Controller’s Office <=$100 such as t-shirts, cups, mugs, etc. allowed with appropriate funds >$100 such as t-shirts, cups, mugs, etc. allowed with President or Vice-President approval, appropriate funds and MUST be reported to the Controller’s Office. |
<=$100 allowed for a valid business reason >$100 allowed for a valid business reason and MUST be reported to Controller’s Office. See details within the policy regarding: |
NON-RESIDENT ALIEN (legal permanent resident or not a U.S. citizen) Allowed as noted above, EXCEPT report ALL amount to the controller’s office |
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Prizes and Awards (without the purchase of ticket or chance) |
NOT ALLOWED for meritorious performance or other reasons connected with employment EXCEPT as part of a campus-wide program. Any amount allowed so long as the individual’s employment is incidental to the basis on which the prize or award is given; i.e., contest, door prize, etc. and MUST be reported to the Controller’s Office. |
ALLOWED, including gift cards or gift certificates Must be for a valid business reason. MUST be reported to the Controller’s Office. |
<=$50 for meritorious performance or other reasons connected with employment, EXCEPT length of service. Length of service awards are allowed, but may only be given by the Human Resources Office. Any amount allowed so long as the individual’s employment is incidental to the basis on which the prize or award is given; i.e., contest, door prize, etc. and MUST be reported to the Controller’s Office. |
ALLOWED Must be for a valid business reason. MUST be reported to the Controller’s Office. |
NON-RESIDENT ALIEN (legal permanent resident or not a U.S. citizen) Allowed as noted above, EXCEPT report ALL amount to the Controller’s Office |
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Cross Reference: IRS Regulations, Policy D-33, Solicitation on Campus; Texas Penal Code §36.02; Policy A-66, University Award Programs.
Responsible for Implementation: Vice President for Finance and Administration
Contact for Revision: Controller, Director of Purchasing and Inventory/HUB Coordinator
Forms: Purchase Requisition