Prize/Award Giveaways
Allowability
Gift cards and other items can be purchased and given away under the following circumstances:
- For students only – cannot be given to employees
- Cannot be given as payment for work or as a reimbursement of an expense
- Must be purchased from allowable fund types:
- Never on state appropriations
- May be allowable on Auxiliaries, Grants, and Foundations
Tracking requirements
*All gift cards of any amount must be tracked, any item over $100 or gift basket where the value is $100 or more must be tracked, and any items that are not de minimis must be tracked and reported using the forms below*
Information that must be collected for all prizes/giveaways include the student’s name, student ID, the name of the item, the value of the item, and the signature of the student. This information is shared with the Controller’s office and may result in the student receiving a 1099 for the total amount of awards/prizes received in that calendar year.
When reconciling a charge for items that were purchased for prizes/giveaways for students use 56905 (non-employee awards). Only reconcile the amount of the gift card to this account, do not include activation fees or shipping charges.
De minimis exception
Do not track de minimis items. Examples of “token” non-cash gifts that meet the de minimis requirement include:
- Coffee cup/coffee
- Pen or pen/pencil set
- Blanket
- Tote bag
- Occasional food items (not allowed on state appropriations)
- Books
- Clothing items
- Trophies/plaques
- Occasional tickets for entertainment events (not allowed on state appropriations)
- Gift certificates, or gift cards that meet all of the following criteria: Inscribed with the recipient’s name, non-transferable, and cannot be redeemed for cash.
Use the appropriate account code for de minimis items that are not tracked (promotional 53709, food 52205, supplies 52900, entertainment 53996, and trophies/plaques 53901) not 56905 (non-employee awards).